Power Mech Projects reported consolidated revenue from operations of ₹1,623.68 crore for the first quarter of fiscal year 2027 (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 basis points. 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.

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 a work order worth ₹279.2 crore from Telangana Power Generation Corporation Limited (TPGCL). The contract is for comprehensive operation and maintenance of Ash and Coal handling plants at the YTPS facility.

ORDER DETAILS AND SCOPE

The newly disclosed order, valued at ₹279.2 crore, was awarded by TPGCL on 28 Sep 2026. The scope of work includes Comprehensive Operation & Maintenance (Mechanical, Electrical, C&I) and up keeping work package for the Ash handling Plant of Stage-I (Unit No.1 & 2) & Stage-II (Unit No.3, 4 & 5). It also covers the complete Coal handling plant of YTPS (5X800 MW). The time period for this engagement is 3 years. The tax treatment for this order is exclusive.

RECENT ORDER TRACK RECORD

This latest win follows a significant order secured earlier in September 2026. On 09 Sep 2026, the company won a ₹970.0 crore end-to-end Operations and Maintenance contract from Vedanta Power Limited (Sakti Thermal Plant) for a 2x600 MW coal-based thermal power plant in Chhattisgarh. Prior to that, in Q1FY27 (Apr-Jun 2026), the company secured orders totaling ₹2473.70 crore, including contracts from JSW Thermal Energy Limited and South Western Railway, Bangalore.

FINANCIAL CONTEXT

The company reported consolidated revenue of ₹1632.40 crore and net profit of ₹89.30 crore in Q1FY27, with an operating profit margin (OPM) of 10.30%. Annual revenue for FY26 stood at ₹6107.20 crore, reflecting a YoY growth of 15.7% compared to FY25. The pre-computed total disclosed order book for the last 3 fiscal quarters stands at ₹3443.70 crore across 5 orders, providing 2.14 quarters of coverage against average quarterly revenue.

VALUATION AND RATIOS

As of 28 Sep 2026, the company's market capitalization was ₹7475.04 Cr with a P/E ratio of 18.1x. Return on Capital Employed (ROCE) for FY26 was 21.1%, while Return on Equity (ROE) was 15.9%. The balance sheet shows a current ratio of 1.71x and operating cashflow of ₹387.50 crore in FY26.