Power Mech Projects reported a strong FY26 performance with consolidated revenue growing 16% to ₹6,062 crore and profit rising 18% to ₹412 crore. The firm secured an order backlog of ₹55,151 crore, driven by integrated EPC and mining MDO mandates. While O&M services provide recurring income, investors should watch for potential margin pressures in the water division and client concentration risks.
Power Mech Projects FY26 Results
Consolidated Revenue: ₹6,062 Crore | Profit After Tax: ₹412 Crore
Reader Takeaway: Strong shift to recurring revenue and large EPC contracts bolsters outlook, though water division margins remain challenged.
What just happened
Power Mech Projects Limited delivered a robust financial performance for the fiscal year 2025-26. The company reported a 16% surge in consolidated revenue to ₹6,062 crore compared to ₹5,234 crore in the previous year. Profit After Tax (PAT) climbed 18% to ₹412 crore, supported by efficient finance cost management. The Board has declared a dividend of ₹1.50 per share.
Why this matters
The company is successfully pivoting from smaller execution packages to becoming a principal contractor in the integrated Balance of Plant (BoP) EPC sector. A highlight is the ₹2,550 crore Singareni package for BHEL. Furthermore, the company’s Mine Developer and Operator (MDO) business is yielding results, with the Kotre Basantpur Pachmo mine commencing revenue generation in November 2025.
Business Strategy
Power Mech maintains its dominance as India’s largest Operations and Maintenance (O&M) provider, managing 36,154 MW across 26 plants. This business segment provides predictable, recurring revenue. The order book now stands at a massive ₹55,151 crore, providing significant multi-year visibility.
Risks to watch
Management has flagged margin pressure in the water division caused by delays in work certification by state authorities. Additionally, the company faces client concentration risks, as its performance remains tied to the capital expenditure programs of a select group of large government and private entities.
Context metrics
- EBITDA: ₹750 crore (up from ₹649 crore)
- EPS: ₹115 (vs ₹103 in FY25)
- O&M Portfolio: 36,154 MW