Power Mech Projects Limited, a prominent player in the engineering and construction sector, has announced significant corporate actions that could shape its future growth trajectory and employee retention strategies.

Proposed Employee Stock Option Plan

The company has issued a postal ballot notice seeking shareholder approval for the implementation of an Employee Stock Option Plan (ESOP). This plan, dubbed 'PMPL ESOP -2026', proposes to offer up to 10,00,000 (Ten Lakh) stock options to eligible employees. Each option, when exercised, will entitle the holder to one equity share of the company.

Key features of the ESOP plan include:

• A vesting period ranging from 1 to 5 years from the date of grant
• Options to be granted at an exercise price determined by the Nomination and Remuneration Committee
• The exercise price will not be less than the face value of the shares and not higher than the fair market value on the date of grant

Increased Borrowing Powers

In addition to the ESOP plan, PowerMech Projects is seeking approval to increase its borrowing limits. The company proposes to raise its borrowing powers from ₹5,000.00 crores to ₹7,500.00 crores. This significant increase of ₹2,500.00 crores in borrowing capacity suggests that the company may be planning for substantial expansion or operational enhancements.

Shareholder Voting Details

The company has provided the following timeline for shareholders to cast their votes on these proposals:

Implications and Outlook

The proposed ESOP plan could serve as a tool for employee retention and alignment of employee interests with those of the company. By offering stock options, PowerMech Projects aims to motivate its workforce and foster a sense of ownership among employees.

The substantial increase in borrowing limits indicates that the company may be preparing for significant financial maneuvers. This could potentially fund expansion plans, new projects, or operational improvements, positioning PowerMech Projects for future growth in the engineering and construction sector.

Shareholders will play a crucial role in determining the outcome of these proposals. Their decisions will shape the company's approach to employee incentivization and its financial flexibility for future endeavors.

Power Mech Projects Limited, a leading industrial and infrastructure services provider, has reported a strong financial performance for the second quarter, with significant growth in revenue and a robust order book.

Financial Highlights

The company's Q2 performance showcased impressive year-over-year growth:

For the half-year period (H1), Power Mech Projects reported:

• Revenue of ₹2,531.00 crores, marking a 24% growth
• EBITDA of ₹340.00 crores, showing a 33% increase

Order Book and New Wins

Power Mech Projects has secured new orders worth ₹4,800.00 crores, including significant wins from major clients:

• BHEL: ₹2,500.00 crores
• Adani Group: ₹1,000.00 crores
• SJVN: ₹500.00 crores

The company maintains a total order backlog of ₹56,000.00 crores, providing multi-year revenue visibility.

Segment Performance

The company's revenue mix for Q2 shows a diversified portfolio:

Operational Highlights

• Power Mech Projects operates as India's largest O&M service provider, managing 75 GW capacity across power, industrial, and infrastructure segments.
• The company expects margin improvement from Q3 onwards, supported by scaling up of MDO operations and growth in regular business segments.

Management Commentary

The management of Power Mech Projects expressed optimism about the company's future performance. They highlighted the strong order inflow and the potential for margin improvement in the coming quarters, driven by the scale-up of MDO operations alongside growth in their core business segments.

Market Position

Power Mech Projects has established itself as a leading player in the industrial and infrastructure services sector. With a diverse portfolio spanning erection works, operations and maintenance, civil works, and mining development operations, the company is well-positioned to capitalize on India's growing infrastructure needs.

The robust order book of ₹56,000.00 crores provides a strong foundation for sustained growth. The company's strategic focus on high-value EPC projects and expansion into adjacent sectors like water and roads is expected to further strengthen its market position.

As Power Mech Projects continues to execute its growth strategy, investors and industry observers will be watching closely to see how the company leverages its strong order book and diverse capabilities to drive long-term value creation.