Power Mech Projects Limited has accepted the resignation of Sajja Lakshmi from her role as Non-Executive and Non-Independent Director on the company’s Board. The resignation took effect at the close of business hours on August 8, 2026.

The company disclosed the development in a letter to the National Stock Exchange of India Limited and BSE Limited dated August 20, 2026. The filing confirmed that Lakshmi stepped down owing to personal pre-occupations and other unavoidable commitments.

Resignation Details

Sajja Lakshmi submitted her formal resignation letter to the Board, citing an inability to devote the requisite time and attention to her duties. She also resigned from her associated committee roles, including her position as Chairperson of the Corporate Social Responsibility (CSR) Committee.

Lakshmi, identified by DIN 00068991, noted that she remains connected to the company as one of its promoters. She requested the Board to relieve her of all duties and arrange for necessary statutory filings, including Form DIR-12 with the Registrar of Companies and relevant stock exchanges.

The company secretary and compliance officer, M. Raghavendra Prasad, signed the disclosure letter, confirming the submission of the resignation document for record purposes.

Power Mech Projects delivered robust top-line growth in Q1FY27, with total revenue rising 26% year-on-year to ₹1,632 crore. The performance was anchored by sustained execution across core verticals, particularly in civil infrastructure, industrial EPC, operations and maintenance (O&M), and international projects. While the consolidated EBITDA margin dipped 3 percentage points to 10.8%, primarily due to higher material costs and royalty adjustments in mining, the company’s net profit after minority interest surged 53% to ₹80 crore. This compares to ₹53 crore in the corresponding quarter of FY26. Profit after tax stood at ₹89 crore, reflecting an 11% increase over the previous year.

Financial Performance

The revenue mix highlighted a diversified contribution across business segments. The civil segment, encompassing roads, railways, and water distribution, contributed ₹796 crore, registering a 28% year-on-year growth. The O&M business continued its steady expansion, contributing ₹431 crore, an 8% increase from the prior year. Mining revenue showed significant momentum, rising 223% to ₹84 crore following the ramp-up of operations at the KBP mine since November 2025. Conversely, the industrial construction business saw a 13% decline to ₹217 crore, partially offset by ₹96 crore from industrial EPC activities.

What the Numbers Show

A critical divergence exists between consolidated and standalone margin performance. While consolidated EBITDA margins contracted to 10.8% due to specific pressures in the mining segment—namely higher overburden removal costs during new seam openings and increased royalty sharing on seized quantities—the standalone business achieved an improved EBITDA margin of 11.3%, compared to 10.2% in Q1FY26. This indicates that the core engineering and construction businesses maintained pricing power and operational efficiency, insulating the group’s overall profitability despite headwinds in the mining vertical.

Order Book and Outlook

Order inflows for the quarter totaled approximately ₹1,864 crore, representing about 15.5% of the annual target of ₹12,000 crore. Key wins included the O&M contract for the Mumbai Monorail, marking an entry into urban mobility. The total order backlog, including mine development and operation (MDO) projects, stands at approximately ₹55,398 crore. Excluding MDO orders, the executable order book is around ₹16,229 crore, providing multi-year revenue visibility.

Management remains confident in achieving the full-year EBITDA margin guidance of 12.5%. CFO N. Nani Aravind noted that while Q1 mining margins were pressured by initial high overburden costs, these are expected to normalize as production ramps up. The company targets ₹500 crore in MDO revenue for FY27, with significant upside potential in FY28 as washeries commission and peak capacities are reached.