Power Mech Projects Reports Robust Q2 Performance with 16.5% Net Profit Growth

Power Mech Projects , a prominent player in the Indian engineering and construction sector, has announced its financial results for the second quarter of the fiscal year, showcasing strong growth across key metrics.

Financial Highlights

The company's consolidated performance for Q2 demonstrates significant year-over-year improvements:

Metric	Q2 (Current Year)	Q2 (Previous Year)	YoY Change
Net Profit	₹781.10 crore	₹670.70 crore	+16.5%
Revenue	₹1,238.00 crore	₹1,035.00 crore	+19.6%
EBITDA	₹147.00 crore	₹124.00 crore	+18.5%
EBITDA Margin	11.88%	11.94%	-6 bps

Key Takeaways

Profit Growth: Power Mech Projects reported a substantial 16.5% increase in consolidated net profit, rising from ₹670.70 crore in the previous year to ₹781.10 crore in the current quarter.
Revenue Expansion: The company's revenue saw a notable uptick of 19.6%, reaching ₹1,238.00 crore compared to ₹1,035.00 crore in the same period last year.
EBITDA Performance: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 18.5% to ₹147.00 crore, up from ₹124.00 crore in the corresponding quarter of the previous year.
Margin Pressure: Despite overall growth, the EBITDA margin experienced a slight decline of 6 basis points, settling at 11.88% compared to 11.94% in the previous year's quarter.

Corporate Developments

In addition to the financial results, Power Mech Projects' Board of Directors approved an Employee Stock Option Plan (ESOP) during their recent meeting. Key details of the ESOP include:

A total of 10,00,000 stock options to be granted, convertible into an equal number of equity shares.
The plan is in compliance with SEBI regulations.
Vesting will commence after a minimum of 1 year from the grant date and may extend up to 5 years.
The exercise period will be 2 years from the date of respective vesting.

This ESOP initiative aims to align employee interests with those of the company and its shareholders, potentially boosting long-term performance and retention.

Power Mech Projects' strong Q2 results, coupled with the introduction of the ESOP, signal the company's commitment to growth and employee engagement. As the company continues to navigate the dynamic engineering and construction landscape, investors and market watchers will be keen to observe how these positive developments translate into sustained performance in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.04%	-4.48%	-8.62%	-28.74%	-18.03%	+933.51%

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:

Purpose	Allocated (Rs. Crore)	Utilized (Rs. Crore)	Remaining (Rs. Crore)
Coal Washery Installation	240.00	68.30	171.70
Loan Repayment	20.00	20.00	0.00
General Corporate Purposes	83.40	83.40	0.00
Total	343.40	171.70	171.70

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.