Extensive management experience and long track record of operations
OMPL started its operation as an Maruti authorized service station and later in 2011 it became an authorised dealer for the passenger vehicle segment of MSIL. The company has an established track record of operations of more than two decades in the automobile industry. Further, the company benefits from its long standing association with MSIL (market share of MSIL is more than 40% in the Indian Automobile Industry) and its aggressive marketing strategy. Apart from the sales of new cars, the company has diversified its business into sales of pre-owned cars (True Value Showrooms), motor driving school, spare parts and services, and acts as a direct selling agent for NBFCs and insurance companies.

Stable growth in operating performance supported by continuous expansion
The operating revenue of the company has depicted a steady growth which stood at Rs. 564.97 Cr. in FY25 (Prov.) (Rs. 537.07 Cr. in FY24), majorly driven by strong demand in the passenger vehicle segment in FY25 along with increasing market presence of the company. Moreover, in 2025, the company has opened 4 new outlets with additional 2 outlets under construction as of now. The operating margin of the company stood range-bound at 2.40 percent in FY25 (Prov.) (2.32 percent in FY24). Moreover, the company has clocked revenue of Rs. 198.59 Cr. till August 2025 and going forward, following the recent revision in GST rates w.e.f September 22, 2025 (from 28% to 18%) and expected rate cut by the principal (Maruti Suzuki), the management anticipates a favourable impact on its operational scale.

Moderately efficient working capital operations
The working capital operations of the company stood efficient marked by moderate gross current assets (GCA) of 66 days in FY25 (Prov.) (76 days in FY24) which mainly comprises of inventory. The debtor days stood increased at 11 days in FY25 (Prov.) (6 days in FY24), owing to higher receivables from allied services in the year-end and yearly incentive receivable from the principal. However, the average credit period allowed to customers on the service segment is 15-30 days and the company receives advance payments for the sales of new cars. Further, the company needs to pay in advance to procure the vehicles and hence the creditor days remains nil.

Moderate financial risk profile
The company’s financial risk profile is moderate marked by its moderate net worth of Rs. 48.35 Cr. as on March 31, 2025 (Prov.) (Rs. 25.93 Cr. as on March 31, 2024). The increase in net worth is primarily attributable to consideration of sub-ordinated unsecured loans of Rs. 18.03 Cr. as quasi equity and also supported by profit accretions. The total debt, mainly comprising of short-term borrowings stood declined at Rs. 67.08 Cr. as on March 31, 2025 (Prov.) (Rs. 123.62 Cr. as on March 31, 2024). Therefore, the gearing stood improved yet moderate at 1.39 times as on March 31, 2025 (Prov.) (4.77 times as on March 31, 2024). The debt protection metrics also stood moderate with interest coverage ratio of 1.83 times in F25 (Prov.) (1.95 times in FY24) and debt service coverage ratio stood similar at 1.08 times in FY25 (Prov.) and FY24.

Stiff competition from other dealers and brands
MSIL's focus on expanding its dealership network is expected to increase competition among its own dealers. Furthermore, the company is also exposed to intense competition from other automobile companies such as Honda, Tata Motors, Hyundai, Mahindra and Kia to name a few. Besides, launch of new models by peers at competitive prices eats into the market share of MSIL, which in turn affects dealers including OMPL. Further, the rating is constrained by the inherent cyclicality in the automobile sector and outlook for passenger cars.