Power Mech Projects Limited shares surged up to 4.5% on Friday after the company announced securing a substantial ₹3,126 crore order for Battery Energy Storage System development. The stock reached a high of ₹2,459.00 compared to its previous closing price of ₹2,353.35, with the company maintaining a market capitalization of ₹7,637.23 crores.

Major Order Win Details

Power Mech Projects announced that its wholly owned subsidiary, PM Green Private Limited, has received a significant order from West Bengal State Electricity Distribution Company Limited (WBSEDCL). The comprehensive project details are outlined below:

The project encompasses complete design, financing, engineering, procurement, construction, operation, and maintenance of the BESS facilities, with a 100% off-take guarantee from WBSEDCL. The order includes an additional "Greenshoe" option for another 250 MW/1,000 MWh facility at the Durgapur location.

Strong Financial Performance

The company demonstrated robust financial growth in Q2FY25-26, showing significant improvement across key metrics:

The company maintains strong efficiency indicators with a ROCE of 22.9% and ROE of 16.3%, alongside a conservative debt-to-equity ratio of 0.42. Its PEG ratio of 0.73 suggests potential undervaluation, while the company has delivered robust profit growth with a 20.1% CAGR over the last five years.

Company Profile and Market Position

Power Mech Projects operates as a leading industrial and infrastructure services provider, holding the position of India's market leader in Operation & Maintenance services. The company manages over 75 GW across industrial, infrastructure, and power sectors, offering diversified engineering and infrastructure solutions backed by strong technical expertise.

With 25 years of multi-sector project delivery experience, Power Mech Projects handles diverse projects ranging from power-plant construction to metro, water, and civil infrastructure developments. The company's proven engineering depth and reliability have established it as a trusted partner across multiple sectors.

Extensive Client Portfolio

The company serves a comprehensive domestic client base including prominent organizations such as NTPC, BHEL, Doosan, Reliance Industries, Siemens, Tata Power, Adani, Vedanta, Jindal Steel & Power, ONGC, and Indian Oil. Additionally, it works with important power sector entities including:

• Power Grid Corporation of India
• Central Organisation for Railway Electrification (CORE)
• Various state electricity boards
• Infrastructure companies across India

Internationally, Power Mech Projects' client portfolio spans various industries and regions, including ADNOC, GE Alstom, Mitsubishi, Dangote, Hyundai Heavy Industries, SepcoIII, and Romco, demonstrating the company's global reach and capabilities in delivering complex engineering projects.

Power Mech Projects Ltd announced on January 8 that its wholly owned subsidiary, PM Green Private Ltd, has received a major order from West Bengal State Electricity Distribution Company Ltd (WBSEDCL) to establish battery energy storage facilities in West Bengal. The infrastructure firm secured this significant contract under a build-own-operate model with guaranteed off-take arrangements.

Project Details and Scope

The primary contract involves setting up a 250 MW/1,000 MWh standalone Battery Energy Storage System (BESS) at Goaltore, Paschim Medinipur, West Bengal. The order structure includes a 100% off-take guarantee from WBSEDCL, providing revenue certainty for the project.

Additionally, a greenshoe option of 250 MW/1,000 MWh is included for the Durgapur Project Ltd (DPL) campus in Durgapur, West Bengal. The combined order value, including the greenshoe option, reaches ₹3,126.00 crore, excluding GST.

Implementation Timeline and Services

The comprehensive scope of work covers design, finance, engineering, procurement, construction, operation, and maintenance of the BESS facilities at both sites. The project timeline is structured in two distinct phases.

The commissioning phase is scheduled for completion within 18 months from the signing of the Battery Energy Storage Purchase Agreement (BESPA). Following commissioning, the operation and maintenance period extends for 180 months, ensuring long-term revenue visibility for Power Mech Projects.

Corporate Structure and Compliance

The order has been awarded by WBSEDCL, a domestic entity, and is not classified as a related party transaction. The company confirmed that neither promoters nor group companies hold any interest in WBSEDCL, ensuring transparency in the contract award process.

Second Quarter Financial Performance

Power Mech Projects demonstrated strong financial performance in its second quarter results. The company's operational efficiency and revenue growth reflect its expanding market presence in the infrastructure sector.

The company reported an 11.70% year-on-year increase in net profit at ₹74.92 crore for the quarter ended September 2025, compared with ₹67.07 crore in the same period last year. Revenue rose 19.50% year-on-year to ₹1,237.80 crore from ₹1,035.40 crore. EBITDA increased 19.00% to ₹147.02 crore from ₹123.56 crore in the year-ago quarter, while the operating margin stood at 11.88% for the quarter, slightly lower than 11.94% in the year-ago period.

Market Performance

Shares of Power Mech Projects Ltd ended at ₹2,353.00, down by ₹44.00, or 1.84%, on the BSE, reflecting normal market fluctuations despite the positive business development.