Om Power Transmission Ltd Management Discussions

The global economy in 2026 is moving between two opposing forces, war and technology. Global growth is projected at 3.0% for 2026 and 3.4% for 2027, compared with the 3.5% average recorded during 2024-25. Activity is being shaped on one side by the negative supply shock from the war in the Middle East, and on the other by the global technology cycle, driven by advances in artificial intelligence (AI) and its adoption. Outcomes differ across countries depending on their exposure to the conflict and their position in the technology value chain. Energy prices remain about 25% above prewar levels, with the average petroleum spot price projected at around USD 89 per barrel in 2026, 32% higher than in 2025. Global headline inflation is expected to rise from 4.1% in 2025 to 4.7% in 2026 before easing to 3.9% in 2027, which indicates that the disinflation underway since early 2024 has stalled. World trade volume growth is projected to slow from 5.0% in 2025 to 3.5% in 2026 and then recover to 4.3% in 2027, reflecting the earlier frontloading of shipments, the drag from tariffs, and the gradual adjustment of supply chains.

Across regions, advanced economies are projected to grow 1.7% in 2026 and 1.8% in 2027. The United States is expected to grow 2.3% in 2026, supported by fiscal policy, accommodative financial conditions, and continued technology-related business investment. The Euro Area at 0.9%, Japan at 0.6%, and the United Kingdom at 1.0% face weaker prospects on account of higher energy prices and soft momentum. Emerging market and developing economies (EMDEs) are forecast to grow 3.8% in 2026 before recovering to 4.5% in 2027. Chinas growth is projected to slow to 4.6% as higher oil prices, prolonged uncertainty, and structural headwinds weigh on activity, while India remains among the fastest-growing major economies. Risks to the outlook are more balanced than in April but remain tilted to the downside. Renewed conflict in the Middle East could prolong commodity price volatility, disrupt supply chains, and tighten financial conditions, trade fragmentation could accelerate, and a correction in technology-driven expectations could trigger sharp repricing in equity markets, with reduced policy buffers amplifying any shock. On the upside, energy markets could normalise faster than expected, technology investment could strengthen further, and sustained cooperation could lower trade barriers.

Policy attention throughout the year has centred on restoring price stability, with clear communication, central bank independence, and financial oversight forming the core of that effort, alongside the rebuilding of fiscal buffers through temporary and targeted support that leaves price signals intact. Energy-related fiscal support has largely been framed as a transitional measure to be withdrawn as the shock recedes. For the energy sector, faster adoption of renewable and energy-efficient technologies is increasingly linked to stronger energy security, lower vulnerability to future price shocks, and progress on climate goals. Structural reforms covering energy security, AI readiness, and domestic rebalancing, together with international cooperation, remain central to the medium-term growth outlook. In summary, the global economy in 2026 is marked by slower and uneven growth, renewed inflationary pressure, and high uncertainty, and within this setting the clean energy transition stands out as both a resilience requirement and a durable investment opportunity.

India remains the fastest-growing major economy in a global environment shaped by conflict, elevated energy prices, and technology-led divergence. Based on global outlook assessments published in mid-2026, Indias real GDP grew by an estimated 7.7% in FY26, among the strongest expansions recorded by any large economy during the year. Growth is projected in the range of 6.4-6.6% for FY27 and 6.7-7.2% for FY28, supported by momentum in private consumption and services activity. On a calendar-year basis, growth is projectec at 7.0% for 2026 and 6.4% for 2027. This compares with the 3.8% average projected for emerging market and developing economies in 2026 and Chinas projected 4.6% and reflects the breadth of Indias domestic demand base.

Forecast revisions through the year have also moved in Indias favour. The June 2026 round of global projections raised Indias forecasts for FY27 and FY28 by 0.1 and 0.6 percentage points respectively over the January 2026 round, even as projections for most large economies were lowered. This came against a backdrop in which global growth is expected to slow to about 2.5-3.0% in 2026, the weakest pace since the pandemic, on account of the conflict in the Middle East and elevated energy prices. Global headline inflation is expected to rise in 2026 on higher energy and food prices before easing through 2027, and world trade growth is set to slow before recovering. South Asia, anchored by India, is projected to remain the fastest-growing developing region, with regional growth of 6.3% in 2026 and 6.9% in 2027, and emerging and developing Asia, led by India, is expected to continue outpacing every other region over the forecast horizon.

Indias macroeconomic position remains exposed to the current commodity cycle. As a large importer of crude oil and natural gas, the country is affected by the elevated energy prices resulting from the war. Terms-of-trade deterioration across oil-importing Asian economies has worsened inflation outlooks and placed pressure on exchange rates, leading to an upward repricing of expected policy paths. Geopolitical uncertainty and commodity price volatility could also affect external demand and investment flows into emerging markets At the same time, the rising share of renewable energy in generation and the declining energy intensity of output have left economies more resilient to energy price shocks than in earlier episodes, which has been an important factor in the global economys better-than-feared performance.

India therefore enters FY27 with momentum and improving visibility. With growth of 6.4-6.6% projected for FY27 and 6.7-7.2% for FY28, the country is expected to remain the principal contributor to global growth. The medium-term picture remains structurally strong, with the aspiration of a developed economy by 2047 implying sustained expansion in manufacturing, urbanisation, infrastructure, and per capita energy consumption. Rising electricity demand and the national priority of energy security underpin the multi-year investment cycle in renewable energy discussed in the sections that follow.

Sources: IMF, World Economic Outlook Update (July 2026);

World Bank, Global Economic Prospects (June 2026)

India operates one of the largest and most complex power systems in the world, spanning generation, transmission and distribution and drawing on a mixed energy basket of coal, gas, hydro, nuclear and a rising share of renewable sources. Rising industrialisation, urbanisation and electrification continue to push electricity demand steadily higher, and the emergence of new load segments such as data centres, green hydrogen and electric mobility is expected to add further to demand over the coming years.

Indias electricity energy requirement is projected to rise from 1,626 billion units in FY24 to 1,907 billion units by FY27 and 2,473 billion units by FY32, while total power generation capacity is expected to increase from 442 GW in FY24 to 673 GW by FY30. As of March 2026, non-fossil sources accounted for about 283 GW of installed capacity, representing over half of the countrys total installed base, in line with the national target of achieving 500 GW of nonfossil capacity by 2030. Reflecting this build-out, the countrys combined power generation and transmission market is projected to expand around 2.2 times, from approximately USD 125 billion in FY24 to USD 280 billion by FY30.

Indias power infrastructure industry covers the engineering, construction, upgradation and long-term upkeep of the network that carries electricity from generating stations to consumers, and comprises overhead transmission lines, air and gas insulated substations, underground cable systems, distribution networks and the operation and maintenance of these assets. Activity across the industry is set by the pace of generation capacity addition, the concentration of renewable capacity in a small number of resource- rich states, the shift towards extra-high and ultra-high voltage classes required to move larger volumes of power over longer distances, and the modernisation of ageing and space-constrained urban networks. The 765 kV network expanded from 44,851 ckm in FY20 to 56,955 ckm in FY25 under the One Nation, One Grid, One Frequency programme, and peak demand is projected to grow at a compound annual rate of about 6% over FY27-FY36, both of which point to a sustained requirement for new lines, substations and cable systems. Work of this nature is increasingly awarded on a turnkey engineering, procurement and construction basis, with maintenance contracted separately over long tenures, which favours integrated players able to execute across voltage classes and asset types.

Sources: Central Electricity Authority and National Electricity Plan; D&B Report

The transmission segment carries bulk power from generating stations to distribution networks across states and regions, and is central to integrating geographically dispersed generation into the grid. Indias transmission network at 220 kV and above expanded from 4.42 lakh circuit kilometres (ckm) in FY21 to 4.94 lakh ckm in FY25 and crossed the 5 lakh ckm mark in early 2026, while transformation capacity and inter-regional transfer capacity have grown in tandem.

Over the past five years the country added an average of about 13,861 ckm of transmission lines and 73,924 MVA of transformation capacity a year, and under

the National Electricity Plan the transmission network is planned to reach about 6.48 lakh ckm by 2032, supported by planned transmission investment of the order of R9.15 lakh crore over 2023-32. The segment has also seen significant modernisation through the introduction of HVDC lines, smart-grid technologies and real-time monitoring, and the strength of the opportunity is reflected in a transmission bid pipeline that has expanded from under R150 billion in February 2021 to close to INR 1 trillion of projects currently up for bidding.

Substations are critical nodes in the transmission network, transforming voltage levels and routing power reliably across the grid, and demand for new substation capacity moves closely with generation additions and renewable evacuation requirements. They are broadly classified by switchgear technology into Air Insulated Substations, in which components are insulated using air at atmospheric pressure, and Gas Insulated Substations, in which equipment is insulated with sulphur hexafluoride gas, allowing components to be placed closer together and materially reducing the space footprint, which suits constrained and urban locations. Increasingly, substations are equipped with SCADA systems that enable remote, real-time monitoring and control, enhancing reliability and operational efficiency.

Transformation capacity at 220 kV and above reached about 1,407 GVA by early 2026, having grown at a compound annual rate of around 6.7% over FY20-25, and under the National Electricity Plan it is planned to rise to about 2,345 GVA by 2032, with the 765 kV class seeing the largest additions as the network moves towards ultra-high-voltage infrastructure and a growing pipeline of renewable evacuatior substations is developed across resource-rich states.

Sources: Central Electricity Authority and National Electricity Plan; D&B Report

Underground cabling forms an integral part of transmission and distribution infrastructure and is deployed where overhead lines are not feasible on account of space constraints, safety considerations or urban density. Underground systems deliver reliable, uninterrupted supply while reducing exposure to environmental factors, minimising right-of-way issues and lowering the risk of outages caused by storms, high winds and other external impacts.

The scope spans both high-tension and low-tension systems and encompasses trenching, cable laying, jointing and termination, with high-voltage and extra-high-voltage cables forming the fastest-growing segment as urbanisation and grid modernisation accelerate the shift underground. Indias power cables market was estimated at around USD 6.1 billior in 2024 and is projected to reach about USD 9.5 billion by 2033, a compound annual growth rate of roughly 5%, driven by investments in transmission infrastructure, renewable evacuation and urban electrification

Source: D&B Report; IMARC Group

Distribution is the final and most consumer-facing stage of the electricity value chain, delivering power from substations to residential, commercial, agricultural and industrial consumers, and is largely owned and operated by state distribution companies and electricity boards. The distribution segment has historically faced operational and financial challenges, including high aggregate technical and commercial losses and billing inefficiencies, which have weighed on service reliability and the sectors viability.

Reform efforts have gained considerable momentum, led by the Revamped Distribution Sector Scheme (RDSS), which carries an outlay of approximately INR 3.03 lakh crore and targets the installation of around 250 million prepaid smart meters alongside feeder separation and loss-reduction measures to strengthen the finances of distribution utilities. This modernisation drive, together with a continued policy focus on digital transformation, regulatory clarity and consumer-centric service delivery, is creating substantial engineering and construction demand for grid digitisation, feeder-level monitoring, substation automation and urban underground cabling.

Sources: D&B Report; Ministry of Power

The power EPC industry provides integrated engineering, procurement and construction services across the value chain, spanning engineering and design, procurement, construction and civil works, installation and commissioning, project management and quality assurance, and long-term operation and maintenance. Utilities are increasingly awarding turnkey EPC contracts in preference to fragmented packages, seeking speed, single-point accountability and integrated delivery, and this shift is favouring specialised, integrated players with the capability to execute extra-high-voltage lines, gas insulated substations and complex underground cabling.

Competition is intense, particularly in the 132 kV to 400 kV range, where national players and regional contractors participate actively in state and central tariff-based competitive bidding, and tendering norms that impose net worth, solvency and past-experience thresholds tend to limit first-time entrants. The sector operates within a well- defined regulatory framework administered by the Ministry of Power, the Central Electricity Authority, the Central Electricity Regulatory Commission and the respective State Electricity Regulatory Commissions, which together govern planning, tariffs, licensing and grid compliance.

Source: D&B Report

The operation and maintenance market is expanding in line with the growing installed base of transmission lines and substations, as utilities and private asset owners increasingly outsource long-term upkeep to specialised service providers to assure asset availability and system reliability. Services in this segment cover preventive, corrective and condition- based maintenance, round-the-clock system monitoring, real-time data logging and the safe operation of equipment, carried out in accordance with Central Board of Irrigation and Power norms and original-equipment-manufacturer guidelines. With around 6,511 ckm of transmission lines added in 2025 alone and a substantial fleet of substations commissioned under the National Electricity Plan, the addressable base for maintenance services continues to widen, while the growing adoption of SCADA-enabled monitoring and predictive-maintenance techniques is reshaping how these services are delivered. The segment offers recurring, annuity-like revenue and fosters long-term relationships between service providers and asset owners.

Source: D&B Report; Ministry of Power

Om Power Transmission Limited (OPTL) is an integrated, fast-growing power infrastructure EPC company with over 15 years of experience in the execution of high-voltage and extra-high-voltage (EHV) transmission lines, substations and underground cabling on a turnkey basis, complemented by comprehensive operation and maintenance services.

Since commencing operations in 2011, we have built turnkey capability across the full project lifecycle, from design, engineering and procurement through erection, installation, testing and commissioning to long-term maintenance, with execution experience across voltage levels from 11 kV to 400 kV and eligibility to undertake work up to 765 kV.

Headquartered in Ahmedabad and listed on the National Stock Exchange and BSE since April 2026, OPTL holds an AA-class accreditation and is certified to ISO 9001, ISO 14001 and ISO 45001. We serve an extensive client base led by state utilities and public sector undertakings, alongside renewable-energy developers, corporate and industrial clients and infrastructure operators.

Guided by promoters with over 3 decades of industry experience and supported by 821 permanent employees as of FY26, the Company follows a capital-efficient, asset- light operating model that has enabled it to scale rapidly while sustaining high returns on capital without heavy fixed- asset investment.

Overhead transmission line EPC is the largest of the four verticals and remained the principal engine of revenue growth during the year. Work is executed on a turnkey basis and spans route survey, design and engineering, the supply of towers, conductors and hardware, tower foundation and erection, conductor stringing, testing, commissioning and the securing of statutory approvals, across voltage class up to 400 kV with eligibility up to 765 kV Over the last four fiscal years, more than 500 ckm of transmission lines and underground cables were designed, engineered and constructed, supported by a steady flow of utility tenders and the Companys AA-class GETCO accreditation.

The substation vertical provides end-to-end services encompassing design, supply, erection, testing, commissioning and civil works for both conventional and renewable-energy evacuation substations, including Air Insulated (AIS) and Gas Insulated Substations (GIS) with SCADA monitoring systems. This vertical scaled rapidly during the year as the Company secured and executed higher- value projects and benefited from steady demand for utility and renewable evacuation substations, and the growing shift towards gas insulated technology and higher voltage classes offers further scope for expansion.

The underground cabling vertical gained further momentum during the year. OPTL undertakes high-tension and low-tension underground cabling, providing trenching, cable laying, jointing and termination, and has executed extra-high- voltage cable systems as well as the shifting of overhead transmission lines into underground cable for infrastructure projects. The Company has successfully executed more than 70 ckm of underground cabling projects over the last four fiscal years. Drawing on the credentials built from earlier projects, the Company is well placed to benefit from urban network modernisation and the ongoing conversion of overhead networks to underground systems.

Operation and maintenance (O&M) provides a stable, recurring stream of revenue, with 107 substations under maintenance as of the year-end. Services are delivered by skilled maintenance engineers using proprietary testing equipment and cover preventive, corrective and condition-based maintenance in line with prescribed norms and original-equipment-manufacturer guidelines. Beyond its annuity-like earnings, this vertical reinforces long-standing relationships with utility clients and strengthens the Companys positioning for future EPC opportunities.

Source: D&B Report

OPTL delivered a strong financial performance in FY26, with Revenue from Operations of P44,916.49 lakh, up 61% year on year, EBITDA of P5,711 lakh, up 60% at a margin of 12.7%, and Profit After Tax of P4,002.06 lakh, up 81% at a margin of 8.9%. Growth was supported by an order inflow of P61,454 lakh during the year and a closing unexecuted order book of P62,128.11 lakh, representing a book-to-bill ratio of 1.39x and providing healthy revenue visibility for FY27. Reflecting the improved financial profile, CRISIL upgraded the Companys long-term rating to CRISIL BBB+/Stable and its short-term rating to CRISIL A2 in April 2026.

The following are the analytical ratios for the years ended March 31,2026 and March 31,2025 (all amounts in P lakh, unless otherwise stated).

The Companys growth depends on its competitive positioning, the pace of industry investment and its ability to expand into new markets where established players operate. A significant share of revenue and order book is derived from a limited number of customers and from a concentrated geography, and adverse shifts in government capital-expenditure priorities, the competitive landscape or industry dynamics could affect order inflow and growth.

The Company is exposed to volatility in the prices of key raw materials, the timing of receivables and working-capital requirements, liquidity, and movements in interest rates. As a project-based business, input-cost fluctuations and delays in collections could affect margins and cash flows, particularly on fixed-price contracts.

Project execution is subject to the availability and cost of skilled and unskilled labour, the timely supply of materials, right-of-way and site access, and the maintenance of quality and safety standards in the field. Any slippage in delivery schedules or cost estimates could affect profitability and reputation.

The Company operates in a regulated environment and is required to comply with applicable laws, statutory and regulatory approvals, and labour, environmental, safety and tax norms. Changes in the regulatory or policy framework, or any instance of non-compliance, could affect operations and expose the Company to penalties.

To mitigate these risks, the Company diversifies its presence across states and broadens its client base, incorporates price-variation clauses in its purchase orders to pass through raw- material cost movements, and follows a disciplined and selective bidding approach to protect margins. This is supported by advance procurement planning, long-standing utility relationships, a conservative capital structure, and strict adherence to quality, safety, environmental and regulatory standards, all reinforced by the Companys internal control framework.

The Company enters FY27 with a favourable industry backdrop and a healthy order book, and is targeting revenue growth in line with the trend of the last 4 years, with order inflow to be maintained commensurately to sustain that pace. Growth is expected to be led by overhead transmission, substation and underground cabling, aided by a strong GETCO tender pipeline in Gujarat.

Further, OPTL is extending its footprint beyond Gujarat into Rajasthan and Punjab and is evaluating further states on a pan-India basis, and it sees a longer-term opportunity in the 765 kV segment as GETCO moves towards higher-voltage infrastructure, for which the Company is eligible on the strength of its 400 kV experience. Balancing this positive outlook, the Company remains mindful of competitive intensity in new geographies, movements in raw-material prices, its dependence on a concentrated set of public- sector customers, and the execution risks inherent to its EPC business.

OPTL regards its people as central to the quality, safety and reliability of its execution and, ultimately, to its competitive position. As of FY26 the Company employed 821 permanent employees, supported by a cadre of skilled maintenance engineers and experienced project teams, and led by promoters and a senior management team with deep domain knowledge across the development, operation and maintenance of transmission lines, substations and underground cabling. The Company places strong emphasis on the training and skill development of its workforce, recognising that a competent and safety-conscious workforce is critical in a labour-intensive EPC business, and it has adopted an employee health and safety policy, aligned with its ISO 45001 certification, that seeks to reduce accidents and occupational hazards through the systematic analysis anc control of risk. During the year, industrial relations remained cordial, with no strikes, lock-outs or material employee disputes affecting operations. The Company continues to focus on attracting, developing and retaining talent, fostering a performance-oriented and collaborative culture, and building the organisational capability required to support its growth ambitions and its entry into new geographies and higher voltage classes.

The Company has in place internal control systems that are commensurate with the size, scale and nature of its operations and are designed to ensure the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of the accounting records, the reliability of financial reporting and compliance with applicable laws and regulations. These controls are supported by defined procurement and project-execution processes, budgetary controls, and the periodic review of operational and financial performance by management, together with quality, safety and maintenance systems aligned with the Companys ISO certifications. The adequacy and effectiveness of the internal control systems are reviewed by the Audit Committee of the Board, and corrective actions, wherever required, are taken to further strengthen the control environment on a continuing basis.

This Annual Report, including the Management Discussion and Analysis, contains forward-looking statements that reflect the Companys current expectations, projections, and assumptions regarding future performance, plans, and business objectives. By their nature, these statements are subject to risks and uncertainties, many of which lie beyond the Companys control.

Actual results could differ materially from those expressed or implied, depending on economic conditions, government policies, regulatory developments, competitive dynamics, movements in raw-material prices and other incidental factors.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.