OM INFRA LIMITED has informed the Exchange about Credit Rating- Revision
OMINFRAL · price
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Awaiting price reaction for this filing.
CARE Ratings has downgraded OM Infra Limited's long-term bank facility rating from CARE BBB; Stable to CARE BBB-; Stable, and its short-term rating from CARE A3+ to CARE A3. The downgrade is driven by a sharp deterioration in financial performance — total revenue fell about 38% from ₹1,065 crore in FY24 to ₹659 crore in FY25, and dropped another 39% year-on-year in Q1FY26 to just under ₹100 crore. The main reason was slow execution of Jal Jeevan Mission (JJM) projects after the government slashed the JJM budget from ₹70,163 crore to ₹22,694 crore in the revised estimates, along with delays in hydro-mechanical projects due to natural calamities and pending approvals. Profitability also weakened, with PBILDT margin falling from 9.21% to 4.11% and interest coverage dropping from 4.13x to 1.24x. On the positive side, the company has a healthy order book of around ₹2,660 crore (about 4x of FY25 revenue), the JJM scheme has been extended to December 2028 with a ₹67,000 crore allocation, and the overall gearing remains comfortable at 0.16x with a Stable outlook retained.
This downgrade signals weaker financial health and may push up OM Infra's future borrowing costs, putting short-term pressure on the stock. However, the Stable outlook, strong order book, and expected pickup in JJM execution from Q3FY26 limit the downside risk for existing shareholders.