Power Mech Projects reported a strong FY 2025-26 with consolidated revenue rising 16% to ₹6,062 crore and PAT increasing 18% to ₹412 crore. Driven by a massive ₹55,151 crore order backlog and a successful pivot to integrated EPC projects, the company is expanding its footprint into urban rail maintenance. Investors should monitor the execution of high-margin mining and turnkey contracts as the company shifts toward a more integrated engineering model.
Power Mech Projects FY26 Results: Revenue at ₹6,062 Cr and PAT at ₹412 Cr
What just happened
Power Mech Projects Limited announced its financial results for FY 2025-26, showing robust growth across core segments. Consolidated revenue grew 16% year-on-year to ₹6,062 crore, while Profit After Tax (PAT) reached ₹412 crore, a 18% increase compared to the previous fiscal year. The Board has also proposed a final dividend of ₹1.50 per share.
Why this matters
The company has successfully transitioned from a specialized service provider to an integrated engineering, procurement, and construction (EPC) player. A record order backlog of ₹55,151 crore provides multi-year revenue visibility, supported by long-term mining developer and operator (MDO) contracts. The company’s entry into urban rail maintenance, specifically the Mumbai Monorail, signals a strategic diversification beyond power sector infrastructure.
Reader Takeaway
Strong revenue visibility from a massive order book; watch for margin pressure in water division segments.
Business Transformation
Power Mech has shifted its focus toward integrated Balance of Plant (BoP) EPC contracts. A key anchor for this transition is the ₹2,550 crore order from BHEL for the Singareni project. Additionally, the mining vertical is now operationalized with mandates at Kotre Basantpur Pachmo and Tasra, positioning this segment as a long-term profit driver.
Risks to watch
Segment-specific margin compression persists, particularly in the water division due to certification delays by state authorities. Client concentration remains a factor, as a significant portion of revenue is generated from public sector entities. Furthermore, the company continues to monitor geopolitical tensions in West Asia, which could influence broader energy market dynamics.
Context Metrics
- Order Backlog: ₹55,151 crore
- O&M Portfolio: 36,154 MW under contract
- Dividend: ₹1.50 per share
- Annual General Meeting: September 17, 2026
What to track next
Investors should monitor the execution speed of the Singareni EPC order and the ramp-up phase of the mining MDO projects. The performance of the newly acquired urban mobility O&M segment will also be a key indicator of successful diversification.