Synopsis:- A Letter of Award worth Rs. 18.50 crore for a 220kV transmission line tied to a SAEL Industries solar project has landed at a power transmission EPC company barely two and a half months into its stock market life. The order adds to a project pipeline that already stood above Rs. 744 crore at the end of December, and brings a large private renewable energy client into a client base that has so far leaned heavily on public sector utilities.
Shares of a recently listed power transmission EPC company came into focus after the company disclosed receipt of a Letter of Award from SAEL Industries Limited, a large Indian renewable energy producer, for a single circuit 220kV transmission line connecting a proposed 240 MW solar plant at Sipur to the Dhama substation. The contract is valued at Rs. 18.50 crore and carries an eight-month execution timeline from the date of the award. The disclosure follows just over two months after the company’s market debut in mid-April, and comes on the back of at least one other order win disclosed in the interim.
With a market capitalisation of Rs. 617.64 crore, the shares of Om Power Transmission Limited were trading at Rs. 180.36 per share, down 1.15 percent from its previous closing price of Rs. 182.46 apiece. It is trading at a P/E of around 15.7.
Order Update
The Letter of Award covers supply, erection, stringing, testing, and commissioning of the transmission line on DC towers, the kind of turnkey scope that forms the core of the company’s business. SAEL Industries Limited, the counterparty, runs one of India’s larger renewable portfolios, spanning solar generation, agricultural waste-to-energy plants, and solar module manufacturing, with contracted capacity that has grown past 6 GW. Against that scale, and against the awarding company’s own order book, Rs. 18.50 crore is a small ticket. It works out to roughly 4 percent of FY26 revenue and about 2.5 percent of the Rs. 744.6 crore order book the company carried across 58 projects as of December 31, 2025.
The eight-month window is shorter than the multi-year tenures typical of large transmission contracts, which fits a single evacuation line built for one solar asset rather than a broader multi-project arrangement. The company has confirmed no promoter or group company interest in SAEL Industries and no related-party dimension to the deal, addressing the governance question that this type of disclosure usually invites.
This is not an isolated announcement either. The company flagged a separate Letter of Intent for a turnkey substation project worth around Rs. 44.95 crore in late April, within two weeks of listing, so order flow has continued at a reasonably steady clip since the IPO rather than tapering off after the listing pop.
Client Mix and Execution Risk
Close to 84 percent of the company’s revenue has historically come from public sector clients such as state transmission utilities and grid operators, concentrated in Gujarat with some presence in Rajasthan, Punjab, and Dadra and Nagar Haveli. An order from a private developer of SAEL’s size sits outside that usual mix and lines up with a broader shift in transmission EPC demand toward evacuation infrastructure for new solar and wind capacity rather than only state grid expansion. Whether this becomes a recurring relationship is not something the disclosure settles; SAEL has not signed any framework covering future capacity, only this one LOA.
On the working capital side, debtor days fell from 176 in FY23 to 118 in FY25 even as revenue nearly tripled over the same stretch, but more recent disclosures on the stock point to debtor days drifting back up toward 180. That pattern tends to show up when an EPC contractor runs several projects with overlapping execution windows, and it is worth tracking given the short runway on this latest order. Total borrowings had come down from Rs. 26 crore to Rs. 19 crore by FY25, and roughly Rs. 25 crore of the IPO proceeds was set aside specifically for debt repayment, which gives the balance sheet some room to fund incremental working capital as new orders like this one come through.
Valuation has already priced in a fair amount of optimism. The stock trades near 15.6 times trailing earnings and about 4.6 times book value, both above where comparable EPC and utilities names sit, while return on equity is running close to 38 percent and return on capital employed was above 40 percent in FY25. A Rs. 18.50 crore order will not move either number; it confirms that order inflow has continued after listing rather than signalling any change in the company’s growth trajectory.
Business & Financial Overview
Om Power Transmission Limited, incorporated in 2011 and based in Ahmedabad, is an EPC company specialising in high-voltage and extra-high-voltage transmission lines, substations, and underground cabling, covering design, supply, erection, testing, commissioning, and operation and maintenance. The company listed on the NSE and BSE on April 17, 2026, after an IPO priced at Rs. 175 per share, comprising a fresh issue of 90 lakh shares and an offer for sale of 10 lakh shares; the stock opened trade at Rs. 186.
For the year ended March 2026, consolidated revenue rose to around Rs. 449 crore from Rs. 279 crore a year earlier, while net profit rose to about Rs. 40 crore from Rs. 22 crore. The March quarter alone contributed Rs. 174.62 crore in revenue and Rs. 16.65 crore in profit, up 36.48 percent year-on-year. Promoters Kalpesh Patel, Kanubhai Patel, and Vasantkumar Patel together held 68.93 percent of the company as of April 2026.
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