Power mech projects Limited has announced the receipt of large-scale orders worth over ₹1,000 crores from subsidiaries of Adani Power Limited on February 18, 2026. The orders encompass critical infrastructure development for two major ultra supercritical thermal power projects, marking a significant milestone for the engineering and construction company.

Order Details and Financial Impact

The company has secured two substantial contracts with a combined value exceeding ₹1,000 crores, excluding GST and other applicable taxes. The orders demonstrate Power Mech Projects' capabilities in handling large-scale power infrastructure projects.

Scope of Work and Technical Specifications

Both contracts involve comprehensive onsite services for erection, testing, commissioning and manpower assistance for performance guarantee tests. The scope encompasses critical power generation equipment including steam generators and steam turbine generators along with their auxiliaries.

The projects represent advanced ultra supercritical thermal power technology, which offers higher efficiency and reduced emissions compared to conventional thermal power plants. Each project involves twin units of 800 MW capacity, totaling 1,600 MW per project.

Project Execution Framework

The contracts specify execution within 36 months from the required erection start date as notified in the Notice to Proceed. Both projects are domestic in nature and involve established subsidiaries of Adani Power Limited as clients.

Client Profile and Market Position

Mirzapur Thermal Energy (UP) Private Limited operates under CIN U40300GJ2010PTC117810, while Mahan Energen Limited functions under CIN U40100GJ2005PLC147690. Both entities are subsidiaries of Adani Power Limited, one of India's largest private thermal power producers.

The orders confirm that neither contract falls within related party transactions, and Power Mech Projects' promoters have no interest in the awarding entities. This ensures arm's length commercial arrangements and transparent business dealings.

Strategic Significance

These orders reinforce Power Mech Projects' position in the power sector infrastructure development market. The company's expertise in steam generator and steam turbine generator systems positions it as a key player in India's thermal power expansion programs. The contracts also highlight the company's capability to handle multiple large-scale projects simultaneously across different geographical locations.

Power Mech Projects Limited has filed its monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations regarding the utilization of proceeds from its Rs. 350 crore Qualified Institutional Placement (QIP). The report, prepared by CARE Ratings Limited, provides detailed insights into the deployment of funds raised through the QIP issued in October 2023.

QIP Utilization Progress

During Q3FY26, the company utilized Rs. 28.78 crore specifically for the installation of coal washery and coal handling plant for the Tasra opencast project. This brings the cumulative utilization for this primary objective to Rs. 97.08 crore out of the total allocated Rs. 240.00 crore.

Deployment of Unutilized Funds

The company has strategically deployed the remaining Rs. 142.92 crore in fixed deposits with RBL Bank and monitoring accounts to ensure optimal returns while maintaining liquidity for project requirements. The deployment strategy shows prudent financial management with returns ranging from 6.85% to 7.00%.

Regulatory Compliance and Project Status

The monitoring agency confirmed that all fund utilization remains aligned with the original offer document objectives, with no material deviations reported. However, the report notes delays in project implementation due to the time required to obtain statutory approvals for the coal washery installation. The company received all necessary approvals by June 2025, enabling accelerated project execution.

Key Compliance Highlights:

• No deviations from original QIP objectives
• All statutory approvals obtained for Tasra project
• Loan repayment to Bank of Bahrain and Kuwait completed within timeline
• General corporate purposes fully utilized as planned

Financial Performance and Timeline

The original timeline projected Rs. 24 crore utilization in FY24, Rs. 48 crore in FY25, and Rs. 168 crore in FY26 for the coal washery project. Actual utilization shows Rs. 2.88 crore in FY24, Rs. 19.06 crore in FY25, and Rs. 75.14 crore spent till December 31, 2025, indicating the impact of approval delays on project execution.

The monitoring agency report, signed by Associate Director Tej Kiran Ghattamaneni of CARE Ratings Limited, confirms the company's adherence to regulatory requirements and transparent fund utilization practices. The report has been submitted to both NSE and BSE as mandated under SEBI regulations for listed companies with outstanding QIP proceeds.