The company achieved a record order backlog of INR 56,806 crore and secured significant new contracts in battery storage and thermal power. These developments provide revenue visibility for the next three years as the firm scales its high-margin mining operations.
Power Mech Projects Limited (NSE: POWERMECH) reported a 6% year-over-year increase in consolidated revenue to INR 1,433 crore for the third quarter of fiscal year 2026. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 8% to INR 173 crore, while profit after tax (PAT) rose 15% to INR 100 crore compared to the same period last year. The company’s performance was supported by steady execution in its core segments, despite a marginal dip in margins due to labor code compliance provisions.
Record Order Inflow Driven by New Contracts
A primary driver of the quarter’s activity was the acquisition of major new contracts, contributing to a record year-to-date order inflow of INR 6,761 crore. Notable wins included a Balance of Plant (BOP) EPC package from BHEL for the Singareni thermal power project, valued at over INR 2,500 crore. Additionally, the company entered the energy transition sector with a INR 1,563 crore grid-scale Battery Energy Storage System (BESS) project for the West Bengal State Electricity Distribution Company.
Strong Revenue and EBITDA Growth in 2025
For the nine-month period ended December 31, 2025, consolidated revenue reached INR 3,987 crore, a 17% increase over the previous year. Nine-month EBITDA climbed 23% to INR 513 crore, with margins improving to 12.88% from 12.22%. The Operations and Maintenance (O&M) and civil works segments remained significant revenue contributors, while the Mining, Development, and Operations (MDO) segment saw its share of total revenue increase by approximately 2% year-over-year. The company’s total order backlog, including MDO contracts, stood at INR 56,806 crore as of December 2025.
Driving Growth Through Integrated EPC and MDO
Management is targeting total order inflows of INR 10,000 crore for the full fiscal year 2026. The company’s strategy involves transitioning from pure execution packages toward integrated EPC delivery and building long-term annuity cash flows through its O&M and MDO businesses. The MDO segment, specifically focusing on coking coal, has operationalized contracts worth over INR 39,500 crore, which are expected to support future margin growth as operations scale. Operational priorities also include digital transformation across project sites to improve uptime and efficiency.
Power Mech Diversifies Beyond Thermal Power Sector
Power Mech maintains a leading position in India’s industrial and infrastructure services market, holding a 20% share in the power O&M sector. The company is diversifying its portfolio beyond conventional thermal power to include civil infrastructure, roads, water supply, and renewable energy to align with India’s national infrastructure pipeline. This expansion into adjacent high-value sectors and energy transition infrastructure, such as BESS and solar, is designed to enhance revenue resilience in a changing energy landscape.