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.

Power Mech Projects reported its unaudited financial results for the quarter ended June 30, 2026, at a Board of Directors meeting held on August 8, 2026. The results reflect a significant year-on-year improvement in profitability on both a standalone and consolidated basis, driven by higher revenue from operations across the group. The Board meeting commenced at 2:30 p.m. (IST) and concluded at 6:40 p.m. (IST).

Standalone Financial Performance

On a standalone basis, Power Mech Projects posted robust growth in revenue and profitability for the quarter ended June 30, 2026. Revenue from operations rose to ₹1,147.71 crore from ₹905.27 crore in the corresponding quarter of the previous year. Total income for the quarter stood at ₹1,178.89 crore against ₹922.21 crore in the year-ago period. Net profit after tax for the quarter came in at ₹95.66 crore, compared to ₹49.79 crore in the same quarter of the prior year. The standalone basic and diluted earnings per share (face value ₹10/- each, not annualised) for the quarter was ₹30.26, versus ₹15.75 in the year-ago quarter.

The following table summarises key standalone financial metrics:

Consolidated Financial Performance

On a consolidated basis, the group reported revenue from operations of ₹1,623.68 crore for the quarter ended June 30, 2026, compared to ₹1,293.41 crore in the corresponding prior-year quarter. Total consolidated income for the quarter stood at ₹1,632.36 crore against ₹1,304.78 crore year-on-year. Consolidated profit before tax was ₹126.38 crore for the quarter. Consolidated net profit after tax attributable to equity shareholders of the parent was ₹79.78 crore, compared to ₹52.52 crore in the year-ago quarter. The consolidated basic and diluted earnings per share (face value ₹10/- each, not annualised) for the quarter stood at ₹25.23, versus ₹16.61 in the same period of the prior year.

The following table presents key consolidated financial metrics:

Employee Stock Option Plan Approved

The Board approved a new Employee Stock Option Plan (ESOP) for granting stock options to eligible employees of the company and its subsidiary companies, subject to shareholder and regulatory approvals. Key features of the plan are outlined below:

The Nomination and Remuneration Committee (NRC) will act as the Compensation Committee for supervision of the ESOP scheme. Vesting of options shall be time-based and/or employee performance-based, as determined by the NRC.

Board-Level Changes and Other Decisions

The Board accepted the resignation of Mrs. Sajja Lakshmi (DIN: 00068991) from her position as Non-Executive and Non-Independent Director, effective from the close of business hours on August 8, 2026. Her resignation was attributed to personal pre-occupations and unavoidable commitments. The Board placed on record its appreciation for her contributions during her tenure. Additionally, the Board approved the reconstitution of various Board committees and the dissolution of the Investment Committee. The financial results were reviewed and recommended by the Audit Committee and approved by the Board in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, Brahmayya & Co., Chartered Accountants, carried out a limited review and issued an unmodified report on the results for the quarter ended June 30, 2026.