Power Mech Projects Limited, a leading infrastructure and energy services company, has reported a strong financial performance for the first quarter, with significant growth in revenue and profitability.

Financial Highlights

The company reported a total income of INR 1,304.00 crores for Q1, representing a 28% increase from INR 1,016.00 crores in the same quarter of the previous year. EBITDA grew by 48% to INR 182.00 crores, while Profit After Tax (PAT) increased by 31% to INR 81.00 crores. The EBITDA margin improved from 12.10% to 13.95%.

Exceptional Income Boosts Performance

The quarterly performance was significantly boosted by exceptional revenues of INR 288.53 crores from the Uttarakhand Riverbed Mineral project, which contributed INR 55.00 crores to PAT. This one-time income was due to seized quantities and additional quantities where royalty was not paid, resulting in higher profit and royalty income for the quarter.

Segment-wise Revenue

The company saw growth across various segments:

• Mechanical segment: INR 222.00 crores (117% increase)
• Civil segment (including railways and water projects): INR 581.00 crores (7% increase)
• Operations & Maintenance (O&M): INR 398.00 crores (17% increase)
• Electrical segment: INR 67.00 crores (737% increase)
• Mining business: INR 26.00 crores (86% increase)

Order Book and New Orders

Power Mech Projects secured fresh orders worth INR 1,270.00 crores during the quarter. The total order backlog stood at INR 53,972.00 crores, with an executable order book of INR 14,391.00 crores (excluding two MDO projects). Key new orders included:

• Telangana Yadadri project worth INR 972.00 crores
• Solar project in Bihar worth INR 159.00 crores under the KUSUM scheme

Future Outlook

The company has set ambitious targets:

• Revenue target of INR 6,500.00 crores, representing 25% year-on-year growth
• Aim to secure INR 10,000.00 crores in new orders

Power Mech Projects is focusing on high-potential areas, including industrial O&M, railway, water infrastructure, and MDO projects.

Mining Development Operations (MDO)

The company's MDO business is progressing steadily:

• Kotre Basantpur project: Mining operations commenced in April, with coal production expected to start from September.
• Kalyaneswari Tasra project: Produced 7.61 lakh tons of coal, with ongoing efforts to increase production and offtake.

Challenges and Opportunities

While the company faces some challenges, including limited washery capacity constraining coal offtake and delayed payments in water projects, it sees significant opportunities in the power sector and infrastructure development. The management highlighted potential in areas such as balance of plant packages, battery energy storage systems, and green power initiatives.

Power Mech Projects continues to maintain a strong focus on execution and diversification, positioning itself to capitalize on the growing infrastructure and energy sectors in India.

Power Mech Projects , a prominent player in the power sector, is making strategic moves to diversify its portfolio and boost its financial performance. The company has announced ambitious plans to expand into the battery energy storage and green energy sectors, signaling a shift towards more sustainable and future-oriented technologies.

Expansion into Battery Storage and Green Energy

In a significant development, Power Mech Projects' management recently embarked on a trip to China to explore potential partnerships for battery supply. This move underscores the company's commitment to establishing a strong foothold in the battery energy storage sector, which is crucial for the growth of renewable energy infrastructure.

Ambitious Revenue Targets

Power Mech Projects has set its sights on substantial growth, targeting a revenue of ₹6,500.00 crore for the fiscal year 2026 (FY26). This goal represents an impressive 25% annual growth rate, highlighting the company's confidence in its expansion strategy and market potential.

Order Book and Financial Outlook

The company has already made significant strides towards its growth objectives, securing new orders worth ₹1,882.00 crore. Power Mech Projects aims to further bolster its order book, setting a target to secure ₹10,000.00 crore in new orders by March 2026.

Margin Projections

Power Mech Projects has provided a detailed outlook on its margin expectations:

For its mining operations specifically, the company has outlined the following margin targets:

Recent Investor Communication

According to the latest LODR (Listing Obligations and Disclosure Requirements) data, Power Mech Projects held a conference call on August 12, 2025, to discuss its financial performance for the quarter ended June 30, 2025. The company has made the recordings of this call available to investors, demonstrating its commitment to transparency and open communication with stakeholders.

Power Mech Projects' expansion into battery energy storage and green energy sectors, coupled with its ambitious financial targets, positions the company for potential growth in the evolving energy landscape. As the company progresses towards its FY26 goals, investors and industry observers will be keenly watching its performance in these new sectors and its ability to meet the projected financial milestones.