Power Mech Projects held its 27th Annual General Meeting on September 17, 2026. The virtual gathering saw shareholders approve the adoption of audited financial statements for FY26 and a new Employee Stock Option Plan.

The meeting commenced at 9:30 am and concluded at approximately 10:48 am via Video Conferencing/Other Audio-Visual Means. Fifty-four shareholders participated in the proceedings. Mr. M. Raghavendra Prasad, Company Secretary and Compliance Officer, confirmed the requisite quorum through the NSDL e-AGM portal.

Key Resolutions Passed

Shareholders voted on nine items of business during the session. The resolutions covered financial approvals, director appointments, and employee benefit plans.

Governance and Board Changes

The Board formally acknowledged the contributions of retired Independent Directors Mrs. Lasya Yerramneni and Mr. Vivek Paranjpe. Additionally, the company noted the departure of Mrs. Sajja Lakshmi, who stepped down as Non-executive Director.

All directors attended the meeting virtually. Key attendees included Chairman and Managing Director Mr. Sajja Kishore Babu, Whole-time Director Mr. Sajja Rohit, and CFO Mr. N. Nani Aravind. Independent Directors Mrs. Vasundhara Sinha, Mr. Jayaram Prasad Chalasani, and Mr. B. Prasaada Rao were also present.

Voting and Audits

The company facilitated remote e-voting from September 13, 2026, to September 16, 2026. Shareholders attending the physical virtual session who had not voted remotely used the Insta-poll facility. Mr. D.S. Rao served as the Scrutinizer for the voting process.

The Statutory Auditors and Secretarial Auditor issued reports with no qualifications, reservations, or adverse remarks for the financial year ended March 31, 2026. The consolidated voting results will be uploaded to the company website within two working days.

Power Mech Projects has won a confirmed work order worth ₹970.0 crore from Vedanta Power Limited (Sakti Thermal Plant). The contract is for an end-to-end Operations and Maintenance (O&M) engagement at the 2x600 MW coal-based thermal power plant located in Chhattisgarh, with a tenure of 60 months.

ORDER IN FINANCIAL CONTEXT

The ₹970.0 crore order value accounts for roughly 60% of the company's pre-computed average quarterly revenue of ₹1608.73 crore. The total disclosed order book, which sums exactly the same last 3 fiscal quarters shown in the table below (4 orders), stands at ₹2473.70 crore. This backlog represents a book-to-bill ratio of approximately 0.38 years of annual revenue, or 1.54 quarters of coverage based on the current run-rate. As this is a confirmed work order, revenue recognition can commence upon project mobilization as per standard accounting practices.

COMPANY ORDER TRACK RECORD

Order inflow velocity has been robust in the most recent quarter, with ₹2473.70 crore secured in Q1FY26 alone, driven by large civil and structural works contracts. The current ₹970.0 crore O&M order is consistent with the company's typical per-order size, which ranges between ₹200 crore and ₹1000 crore for major projects. This mix of EPC and O&M contracts diversifies revenue streams beyond pure construction execution.

EXECUTION AND REVENUE QUALITY

In Q1FY27, the company reported consolidated revenue of ₹1632.40 crore and net profit of ₹89.30 crore, with an operating profit margin (OPM) of 10.30%. While margins contracted slightly from 11.25% in Q3FY26 to 10.30% in Q1FY27, the company maintained profitability across all three quarters. The existing backlog is converting to revenue steadily, though it remains to be seen whether the lower-margin nature of O&M contracts impacts overall blended margins over the next few quarters.

REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE

As Power Mech Projects has sustained order wins, with significant inflows in recent quarters including the ₹2473.70 crore in Q1FY27, its annual revenue has grown from ₹5279.30 crore in FY25 to ₹6107.20 crore in FY26, representing a YoY growth of 15.7% based on the latest annual data. This growth trajectory aligns with the company's ability to execute large-scale infrastructure projects while expanding its order book.

WORKING CAPITAL AND EXECUTION CAPACITY

The balance sheet supports continued execution with a current ratio of 1.71x and Total Liabilities/Equity of 1.16x. Operating cashflow in FY26 was ₹387.50 crore, indicating that the company is generating cash from operations despite capital expenditures of ₹335.50 crore. This positive free cashflow position suggests adequate liquidity to fund working capital requirements for the new O&M contract without excessive reliance on external financing.

WHAT TO WATCH

• Execution rate: Monitor quarterly revenue run-rate against the ₹2473.70 crore backlog to assess conversion efficiency.
• OPM trajectory: Track whether the inclusion of long-term O&M contracts stabilizes or compresses operating margins compared to the historical 11-12% range.
• Client concentration: Evaluate if any single client accounts for more than 40% of the total disclosed order book, which could introduce counterparty risk.
• Cash conversion: Watch for sustained positive operating cashflows as the company executes on multiple large-scale projects simultaneously.

KEY OBSERVATIONS

• Backlog signal: Book-to-bill of 0.38 years (1.54 quarters). At this level, execution capacity becomes the binding constraint rather than order acquisition.
• Valuation check (as of 09 Sep 2026): P/E of 18.1x against ROCE of 21.1%. At the time of this article, valuation was pricing in execution improvement not yet visible in return ratios. (P/E is price-derived and will change; ROCE is from audited financials)
• Cash conversion: Operating cashflow of ₹387.50 crore in FY26; backlog is converting to cash efficiently, supporting working capital needs.