Om Infra stock soars over 12% on landing ₹199 crore hydro-mechanical order from NHPC

Shares of Om Infra Ltd surged over 12 percent intraday on Thursday, June 26, 2025, following the announcement of a landmark contract worth ₹199 crore. The order, awarded by state-run hydropower giant NHPC Ltd, involves turnkey hydro-mechanical works for the Dibang Multipurpose Project, a 2,880 MW power generation facility in Arunachal Pradesh. The substantial order has not only lifted the stock but also reinforced investor confidence in Om Infra's technical capabilities and its focus on strategic water infrastructure projects.

Strategic Project Win on a Massive Scale

The contract comprises two distinct components:

Equipment Supply: Om Infra will provide piping, intake and draft tube gates, hoists, mandatory spares, tools, and tackles for the Lot‑5B package—valued at ₹167.86 crore on an ex-works and on CIF/CIP basis.

Services Package: The firm will manage inland transportation, site handling, installation, testing, commissioning, and performance testing for these supplied components, with this portion valued at ₹31.98 crore.

Together, these form a comprehensive turnkey contract requiring execution within 46 months from the start date. The combined scope positions Om Infra as a single-point delivery partner—from manufacturing to site commissioning.

Om Infra has built its reputation in water management, irrigation, civil construction, and engineering services. MD & CEO Vikas Kothari emphasized that this project leverages the company’s deep experience in hydro-mechanical components for large-scale dams, reinforcing its strategic ambition to expand into hydroelectric, pumped-storage, and water-management sectors.

Adding to its ongoing projects, this ₹199 cr contract significantly boosts Om Infra’s revenue visibility, providing a medium-term pipeline and scope for margin expansion through high-value engineering services.

The successful execution of complex hydro-mechanical contracts like the Dibang project bolsters Om Infra’s credentials in handling sophisticated, technically-intensive work—a key advantage in winning future tenders tied to national initiatives like the Jal Jeevan Mission and other hydropower and irrigation schemes.

Commentary

In his remarks, Mr. Kothari highlighted Om Infra’s commitment to quality, efficiency, and technological integration during project execution. With a 46-month timeline, the firm has sufficient runway to stage orderly delivery, potentially translating into improved profitability and steady revenue accrual over multiple fiscal years.

The deal also enables the firm to “support regional development and strengthen our standing as a trusted infrastructure partner,” aligning with national priorities. The Dibang project itself, as India's largest hydropower facility, underscores the scale and prestige attached to this contract.

Market Reaction

On the news, Om Infra’s shares hit a day’s high of ₹146.50, gaining nearly 12.5 percent. Despite the rally, the stock remains 36 percent below its 52‑week high of ₹227.90 reached in August 2024, and 56 percent above its 52‑week low of ₹94 seen in April 2025.

Over the past year, the stock has declined approximately 22 percent, reflecting volatility amid broader market and sector-specific factors. However, the company has progressively clawed back up 8 percent in June, following incremental gains of 12 percent in May, 0.6 percent in April, and 9 percent in March—even after significant corrections of 27 percent in February and 10 percent in January.

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