Power Mech revenue rises 26% in Q1FY27 as order book hits ₹55,398 crore
Power Mech Projects delivered strong top-line growth in Q1FY27 with revenue up 26% to ₹1,624 crore, supported by robust execution in Civil Infra and O&M. Despite this, EBITDA declined 3% to ₹176 crore due to increased royalty costs and material price pressures, leading to margin compression. Net profit grew 11% to ₹89.33 crore, bolstered by lower tax and finance expenses. The order book stands at ₹55,398 crore, providing significant future visibility.
*this image is generated using AI for illustrative purposes only.
Power Mech Projects reported a consolidated net profit of ₹89.33 crore for the quarter ended June 30, 2026, marking an 11% year-on-year increase from ₹80.55 crore. Consolidated revenue from operations climbed significantly to ₹1,623.68 crore, up 26% from ₹1,293.41 crore in Q1FY25, reflecting stronger execution across its construction and maintenance portfolio. Despite the top-line growth, consolidated EBITDA declined 3% to ₹176 crore (₹176.00 crore), resulting in a margin compression to 10.78% from 13.98% in the prior year period. The divergence between robust revenue growth and contracting operating margins highlights cost pressures that warrant investor scrutiny.
The Board of Directors approved the unaudited financial results during its meeting held on August 08, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Auditors Brahmayya & Co conducted a limited review of the standalone and consolidated financial statements. The company also released an investor presentation on August 10, 2026, detailing segment performance and strategic outlook for FY27.
Financial Performance Overview
| Metric | Standalone (₹ Cr) | Consolidated (₹ Cr) |
|---|---|---|
| Revenue from Operations | 1,147.71 | 1,623.68 |
| Other Income | 31.18 | 8.68 |
| Total Income | 1,178.89 | 1,632.36 |
| Total Expenses | 1,057.91 | 1,505.98 |
| Profit Before Tax | 120.98 | 126.38 |
| Net Profit After Tax | 95.66 | 89.33 |
Consolidated earnings per share (basic and diluted) were ₹25.23, compared to ₹16.61 in Q1FY25. Standalone EPS rose to ₹30.26 from ₹15.75 in the prior year period. Other income contributed significantly to the standalone bottom line, rising to ₹31.18 crore from ₹16.94 crore year-on-year, while consolidated other income decreased slightly to ₹8.68 crore from ₹11.37 crore.
Segment Execution and Margin Pressures
Revenue growth was broad-based, supported by higher execution in Civil Infrastructure, Industrial EPC, Jal Jeevan Mission (JJM) water projects, Operations & Maintenance (O&M), and International projects. Civil Infra remained the largest contributor, accounting for ₹796 crore (49% of total revenue), followed by O&M at ₹431 crore (27%). Industrial Construction contributed ₹217 crore, while Industrial EPC and Mining, Development & Operations (MDO) added ₹96 crore and ₹84 crore, respectively.
EBITDA margin contracted by 320 basis points year-on-year primarily due to increased royalty costs in the KRBM project following a Government Order on royalty sharing for seized quantities, higher overburden removal costs at the KBP mine, and elevated material costs linked to the ongoing Middle East conflict. Chairman and Managing Director Sajja Kishore Babu noted that PAT increased mainly due to lower finance costs and reduced tax expenses, offsetting the operational margin decline.
Order Book and Strategic Outlook
The company secured new order inflows of ₹1,864 crore during Q1FY27, achieving 15.5% of its annual target. Key awards included civil and structural works for the 2×800 MW thermal power project at Salboni, West Bengal, from JSW Thermal Energy; development of Vande Bharat sleeper trains maintenance depot at Thannisandra, Karnataka; and O&M contracts from Adani Infrastructure Management Services and Maha Mumbai Metro Operation Corporation Limited (MMMOCL).
The total order backlog, including MDO contracts, stood at ₹55,398 crore, providing over two years of revenue visibility. High-margin MDO contracts worth ₹39,169 crore are now operationalized, with management expecting margin improvement as MDO revenue scales up in subsequent quarters.
What the Numbers Show
The contrast between 26% revenue growth and a 3% decline in EBITDA underscores a temporary margin squeeze driven by external cost factors rather than execution failure. While Civil Infra and O&M drove volume growth, the profitability of these segments was eroded by specific project-level cost escalations, particularly in mining royalties and global material prices. The significant rise in standalone other income suggests non-operational gains are currently supporting parent-company profitability, making the sustainability of operational margins in MDO and O&M critical for long-term value creation. With an order book exceeding ₹55,000 crore, the company has strong visibility, but investors should monitor whether MDO scale-up can effectively offset these structural cost increases in coming quarters.
Historical Stock Returns for Power Mech Projects
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.62% | -2.50% | -3.42% | +18.29% | -21.43% | +479.23% |
How will the operational scaling of high-margin MDO contracts help offset the 320 basis point EBITDA margin contraction in upcoming quarters?
What specific hedging strategies or supply chain adjustments is Power Mech implementing to mitigate material cost volatility driven by the Middle East conflict?
To what extent will the new royalty sharing order for the KRBM project impact long-term profitability, and are there provisions for renegotiation?
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