Power Mech Projects Q3 Revenue Up 6%, Boosts Order Book to ₹17,327 Cr

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AuthorAnanya Iyer|Published at:
Power Mech Projects Q3 Revenue Up 6%, Boosts Order Book to ₹17,327 Cr
Overview

Power Mech Projects reported Q3 FY26 revenue of ₹1,433 crore, a 6% YoY jump. EBITDA rose 8% to ₹173 crore with margins stable at 12.08%, despite labor code provisions. PAT grew 15% to ₹99.63 crore, aided by other income and lower taxes. The company boasts a robust ₹17,327 crore order book (excl. MDO) and won significant EPC and BESS projects, signaling strategic expansion into energy transition. Management targets INR 10,000 crore inflows for FY26.

📉 The Financial Deep Dive

Power Mech Projects Limited announced its Q3 FY26 unaudited financial results, posting a revenue of ₹1,433 crore, marking a 6% year-over-year (YoY) increase. For the nine-month period (9M) ended December 31, 2025, revenue saw a significant 17% YoY growth to ₹3,987 crore.

EBITDA for the quarter stood at ₹173 crore, up 8% YoY, with EBITDA margins at 12.08%, remaining broadly in line with the previous year. A marginal dip in EBITDA margin compared to the previous quarter was attributed to provisions created for compliance with the new labor code, though underlying operating performance was consistent. Profit After Tax (PAT) for Q3 FY26 grew 15% YoY to ₹99.63 crore, with PAT margins improving to 7.02% due to higher other income and reduced tax costs. For 9M FY26, both EBITDA and PAT increased by 23% and 19% YoY, respectively.

The Quality:

  • Cash flow from operations showed marked improvement, generating ₹113.44 crore in the nine-month period.
  • Total assets increased to ₹5,224.61 crore as of December 2025 from ₹4,614.41 crore in March 2025. Total borrowings rose to ₹854.57 crore, leading to a Net Debt of approximately ₹792.44 crore.

🚀 Strategic Wins & Outlook

The company's order book, excluding MDO contracts, stands at ₹17,327 crore, providing over three years of revenue visibility. Order inflows for FY26 YTD reached ₹6,761 crore, with management expressing confidence in achieving the target of ₹10,000 crore for the full fiscal year.

Key strategic wins during the quarter include a large Balance of Plant (BOP) EPC package for the 1x800 MW Singareni thermal power project from BHEL, expanding the company's scope to integrated EPC delivery. Additionally, Power Mech secured a grid-scale (250 MW/1000 GWhr) Battery Energy Storage System (BESS) project under a Build-Own-Operate (BOO) model from West Bengal State Electricity Distribution Company, aligning with its strategy in energy transition infrastructure. Management highlighted a strategic focus on building long-term annuity cash flows through the expansion of O&M and MDO businesses, as well as diversification into high-value EPC projects and adjacent sectors like civil infrastructure and renewable energy. The total order book, including MDO contracts, now totals ₹56,806 crore.

🚩 Risks & Outlook

Specific risks include the short-term impact of provisions for the new labor code on margins and the management of increased debt levels. Execution on the growing order book, particularly in new segments like BESS, will be crucial. The forward view is underpinned by a strong order pipeline and a strategic pivot towards annuity income and energy transition projects. Investors will monitor the company's ability to meet its order inflow targets and manage its debt prudently.

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