Power Mech Projects Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, detailing the utilization of proceeds from its Qualified Institutional Placement (QIP) worth Rs. 350 crores. The report, prepared by CARE Ratings Limited, sheds light on the company's financial activities and project progress.

Key Highlights

• QIP Proceeds: The net proceeds from the QIP amounted to Rs. 343.00 crores.
• Utilization: During Q2 FY2026, Power Mech Projects utilized Rs. 32.00 crore for washery installation payments.
• Cumulative Usage: As of September 30, 2025, a total of Rs. 171.70 crores has been utilized.
• Remaining Funds: Rs. 171.70 crores remain in fixed deposits and monitoring accounts.

Fund Allocation and Utilization

The company's fund allocation and utilization can be summarized as follows:

Project Progress and Challenges

Power Mech Projects has faced some delays in the coal washery installation project:

• Approvals for the Tasra MDO project were expected by June 2025.
• The company aims to complete the installation by the financial year 2026.
• No deviations from the disclosed objectives were reported.

Financial Management

Power Mech Projects has demonstrated prudent financial management of the unutilized funds:

• Rs. 200.67 crore invested in fixed deposits with RBL Bank, earning interest rates of 7.95% and 8.05%.
• Rs. 1.53 crore maintained in the monitoring account.

Looking Ahead

While there have been delays in obtaining approvals for the coal washery installation, Power Mech Projects remains committed to its expansion plans. The company's board of directors is scheduled to meet on November 10, 2025, to consider the unaudited financial results for Q2 and H1 FY2026, which may provide further insights into the company's financial health and project progress.

Investors and stakeholders will be keen to observe how Power Mech Projects navigates the challenges in project implementation and utilizes the remaining QIP funds in the coming quarters.

Power Mech Projects Limited has announced a significant milestone in its business operations, securing a large-scale contract worth over ₹2500 crores from Bharat Heavy Electricals Limited (BHEL). The contract involves Engineering, Procurement, and Construction (EPC) work for the Balance of Plant (BOP) package at the 1 X 800 MW Singareni Super Thermal Power Project, Stage - II, located in Mancherial, Telangana.

Contract Details

Scope of Work

The comprehensive EPC package for the Balance of Plant includes:

• Design and engineering
• Manufacturing, inspection, and testing
• Supply and delivery to the project site
• Civil and structural works
• Construction and erection
• Commissioning and trial runs
• Performance Guarantee (PG) Test
• Annual maintenance until handover
• Training, warranty, and defect liability period

Power Mech Projects will be responsible for the entire process, from initial design to final handover, operating on a Single Point Responsibility basis for the total scope defined in the Balance of Plants as per the scope matrix and battery limit.

Project Significance

This contract represents a substantial addition to Power Mech Projects' order book, potentially boosting the company's revenue and market position in the power sector. The project's scale and complexity underscore the company's capabilities in handling large-scale thermal power projects.

Market Implications

The securing of this significant contract may have positive implications for Power Mech Projects' financial outlook and market perception. Investors and market analysts are likely to closely monitor the execution of this project, as it could impact the company's performance over the next three years.

As the Indian power sector continues to expand to meet growing energy demands, contracts of this magnitude highlight the ongoing investments in thermal power infrastructure. However, it's important to note that the long-term trajectory of such projects may be influenced by India's evolving energy policies and commitments to renewable energy sources.

Power Mech Projects' ability to secure and execute such large-scale projects may position it favorably in the competitive landscape of the power infrastructure sector. Stakeholders will be keen to observe how efficiently the company manages this significant project within the stipulated timeframe of 38 months.