Power Mech Projects Reports Strong FY26 Growth with ₹412 Cr Profit

Profit After Tax for FY26 grew 18% YoY to ₹412 crore on 16% revenue growth to ₹6,107 crore.

Reader Takeaway: Consistent growth and strong order visibility, but watch order inflow misses and water division.

What just happened

Power Mech Projects Ltd. announced its financial results for the fourth quarter and full year ending March 31, 2026 (FY26). For the full year, the company recorded a total revenue of ₹6,107 crore, marking a 16% year-on-year (YoY) increase. Profit After Tax (PAT) also saw robust growth, rising by 18% YoY to ₹412 crore. The company ended the fiscal year with a substantial order backlog of ₹55,151 crore.

Why this matters

The results indicate continued expansion and profitability for Power Mech Projects. The significant revenue and PAT growth, coupled with a large order backlog, provide strong visibility for future earnings. The improvement in operating cash flow is also a key positive, suggesting better financial health and reduced reliance on working capital.

The backstory

Revenue growth in FY26 was primarily fueled by the expansion in industrial power construction, civil infrastructure, and operations and maintenance (O&M) services. The company's strategy of balancing growth across its diversified segments has been effective. However, the water division faced some challenges with delays in bill certification, which partially impacted overall momentum.

What changes now

The company has set an ambitious revenue growth target of 21% for FY27. Management is focusing on resolving issues in the water division by concentrating on near-completion work and has provided a clear path for margin improvement in the Mining Developer and Operator (MDO) segment.

Risks to watch

A key concern is the shortfall in order inflow for FY26, where the company achieved ₹7,210 crore against a target of ₹10,000 crore, primarily due to the cancellation of a ₹1,563 crore battery energy storage system (BESS) order. Execution in the water division remains a point to monitor. Additionally, the broader macroeconomic environment, including potential inflation and supply chain disruptions, could impact margins.

Peer comparison

While specific peer financial data is not provided in the filing, Power Mech Projects operates in the engineering, procurement, and construction (EPC) sector, facing competition from other large infrastructure and power project developers in India. Its diversified revenue streams and large backlog are key differentiators.

Context metrics (time-bound)

• Total Revenue (FY26): ₹6,107 crore (16% YoY growth)
• Profit After Tax (FY26): ₹412 crore (18% YoY growth)
• Order Backlog (as of March 31, 2026): ₹55,151 crore
• Operating Cash Flow (FY26): ₹430 crore (vs ₹0.74 crore in FY25)
• FY27 Revenue Guidance: 21% growth

What to track next

Investors will be keen to see the company achieve its FY27 revenue growth targets and its ability to secure new orders, particularly to offset the impact of the cancelled BESS project. Progress in resolving outstanding receivables in the water division and the expansion of the MDO segment's profitability will also be crucial.