Power Mech Projects reported consolidated revenue from operations of ₹1,623.68 crore for Q1FY27, marking a 26% year-on-year increase compared to ₹1,293.41 crore in Q1FY26. The growth was driven by higher execution volumes in civil infrastructure, industrial EPC, and international projects.

Despite the top-line expansion, profitability faced pressure. Profit after tax (PAT) rose 11% YoY to ₹89.32 crore, while EBITDA declined slightly by 3% to ₹176.00 crore. The company attributed the margin contraction to elevated material costs stemming from Middle East geopolitical tensions and increased royalty sharing for river dredging in the KRBM project.

Financial performance overview

The quarter saw a divergence between revenue momentum and margin stability. While revenue surged, the EBITDA margin contracted to 10.78% from 13.98% in the corresponding period last year. This represents a decline of 320 bps. The PAT margin also dipped to 5.50% from 6.23% YoY.

Segment dynamics and order book

Infrastructure construction remained the largest revenue contributor, accounting for 47.91% of total revenue in Q1FY27. Industrial services contributed 30.76%, followed by industrial construction at 19.32%. The Mining, Development and Operations (MDO) segment’s share rose to 2.01% as production ramped up at the KBP mine.

The company disclosed an order book of ₹17,317 crore (excluding MDO), providing visibility for over 2.5 years of revenue. Including MDO contracts, the total order backlog stood at ₹56,647 crore as of Q1FY27. Order inflows for FY27 year-to-date totaled ₹3,113 crore, with a target of ₹12,000 crore for the full fiscal year.

Key order wins in H1FY27

• ₹970 crore: Comprehensive O&M for Vedanta Power Limited’s Athena Chhattisgarh plant.
• ₹855 crore: Civil and structural works for JSW Thermal Energy’s Salboni project.
• ₹296 crore: O&M for Mumbai Monorail operations.
• ₹266 crore: O&M services for Adani Infrastructure Management Services’ Butibori plant.

Outlook on margin recovery

Management expects EBITDA and PAT margins to improve in subsequent quarters. This recovery is supported by the scale-up of MDO operations and continued growth in the core business. The ramping up of production at the KBP mine is expected to contribute positively to the margin profile as volumes increase.

What the numbers show

A notable pattern emerges when comparing the robust 26% revenue growth against the 3% decline in absolute EBITDA. This indicates that incremental revenue was generated at significantly lower margins than the previous year's baseline. The source explicitly links this compression to external material cost pressures and specific project royalty adjustments, suggesting that the core operational efficiency may remain intact, but is currently masked by transient input costs and contractual pass-throughs.

Additionally, the sharp rise in EPS (+52% YoY) despite only an 11% rise in total PAT highlights the impact of non-controlling interests. PAT attributable to shareholders grew from ₹52.52 crore to ₹79.77 crore, indicating that subsidiary-level profits are becoming increasingly significant to shareholder returns.

Power Mech Projects has secured an operations and maintenance contract worth ₹279.20 crore from Telangana Power Generation Corporation.

Contract details

The following table summarises the key details of the awarded contract:

The contract represents a significant order win for Power Mech Projects in the power sector O&M segment, awarded by the state-owned power generation utility of Telangana.