Are Om Infra latest results good or bad?

Om Infra's latest financial results for FY2025 indicate significant operational challenges. The company reported a net profit of ₹35.00 crores, reflecting a year-on-year decline of 25.5%. Revenue also contracted sharply to ₹712.00 crores, down 36.0% from the previous fiscal year. This decline in revenue highlights a dramatic reversal from FY2024, when revenues peaked at ₹1,113.00 crores, raising concerns about the company's project pipeline visibility and execution capabilities in a competitive construction sector.
The operating margin for FY2025 fell to 2.8%, a notable decrease from 6.9% in FY2024, indicating mounting cost pressures and operational inefficiencies. Additionally, the average return on equity (ROE) for the company stands at a low 3.81%, which is significantly below industry standards, suggesting poor capital deployment and profitability.

Despite these challenges, there was a notable improvement in the cash flow dynamics for the quarter ended September 2025, with consolidated net profit showing a substantial increase of 742.86% compared to the previous quarter, although this follows a period of negative performance. The company also experienced a quarter-on-quarter growth in net sales of 18.64%, which may indicate some recovery in operational performance.

Overall, Om Infra's financial results reflect a period of significant difficulty, with a clear need for improvement in operational efficiency and profitability. The company saw an adjustment in its evaluation, reflecting the ongoing challenges it faces in restoring investor confidence and operational momentum.