Power Mech Projects reported a robust 26% revenue growth to Rs 1,623.68 Cr for Q1 FY27, while PAT surged 52% to Rs 79.77 Cr. Despite the top-line growth, EBITDA margins contracted by 320 bps to 10.78% due to higher material costs in Middle East operations and increased royalty sharing. The company bolstered its position with Rs 3,113 Cr in new order inflows, bringing its total backlog to Rs 56,647 Cr.
Power Mech Projects Q1 Revenue Hits Rs 1,623.68 Cr
Revenue grew 26% YoY to Rs 1,623.68 Cr; Profit after tax rose 52% to Rs 79.77 Cr.
Reader Takeaway: Strong top-line and order inflow momentum are balanced by near-term margin pressure from mining and international project costs.
What just happened
Power Mech Projects delivered a mixed Q1 FY27 performance. While the company achieved a significant 26% revenue increase and a 52% rise in net profit, operating profitability took a hit. EBITDA stood at Rs 176 Cr, down from Rs 182.37 Cr in the same quarter last year, reflecting a 320 bps margin contraction.
Why this matters
The margin contraction was largely driven by rising material costs linked to Middle East operations and higher royalty sharing for the KRBM river dredging project. Furthermore, the KBP mining segment saw increased expenses related to overburden removal, which management describes as a necessary investment to unlock future production capacity.
Order Book and Momentum
The company continues to secure large-scale contracts, adding Rs 3,113 Cr in new orders during the current fiscal year. Key recent wins include an O&M contract worth Rs 970 Cr for Vedanta Power Limited and an Rs 855 Cr civil works contract for JSW Thermal Energy. The total order backlog now stands at a substantial Rs 56,647 Cr.
Strategic Developments
Power Mech is aggressively expanding its Mine Developer and Operator (MDO) portfolio, aiming for 15 MTPA capacity growth over the next ten years. The KBP project has begun generating revenue, with a new coking coal washery scheduled for commissioning in December 2026. Simultaneously, the firm is transitioning toward an integrated EPC model, focusing on balance-of-plant projects to improve long-term margins.
What to track next
Investors should monitor the scaling of MDO operations and the expected margin recovery as these projects reach higher utilization. Management remains confident that its shift toward a digitally-enabled technical services platform will improve asset uptime and overall profitability in the coming quarters.