Power Mech Projects has secured a five-year Operation and Maintenance contract worth Rs 549.37 crore from Moxie Power Generation, an Adani Group company. The project, covering the 2x600 MW Tuticorin Thermal Power Plant, is set to commence on October 1, 2026. This long-term engagement bolsters the company's recurring revenue stream in the services sector.
Power Mech Projects Secures Rs 549 Crore Thermal Power O&M Contract
Contract Value: Rs 549.37 crore (excluding GST).
Duration: 60 months starting October 1, 2026.
Reader Takeaway: This long-term service contract provides predictable cash flows, though execution remains subject to the October 2026 start date.
What just happened
Power Mech Projects Ltd has been awarded a major Operation and Maintenance (O&M) service contract by Moxie Power Generation Limited, a subsidiary of the Adani Group. The contract involves the 2x600 MW Tuticorin Thermal Power Plant. The project is valued at Rs 549.37 crore, exclusive of GST, and is scheduled to span five years, from October 1, 2026, to September 30, 2031.
Why this matters
O&M contracts are significant for engineering firms as they provide long-term, service-based revenue streams. Unlike capital-intensive construction projects, O&M mandates typically offer more predictable cash flows and lower capital requirements. By securing this order, Power Mech Projects strengthens its footprint in the thermal power services sector.
Corporate Governance
The company has clarified that the transaction is not a related-party deal. Power Mech confirmed that none of its promoters or promoter group entities hold any financial interest in the client company, Moxie Power Generation Limited.
What to track next
Investors should monitor the company's ability to maintain margins on this service contract once operations commence in 2026. Further, the market will look for additional O&M wins to confirm the company's strategy of expanding its recurring revenue base.