Power Mech Projects Q1 FY27: Strong Revenue Growth, ₹55,398 Crore Order Book and Positive Outlook
Power Mech Projects Limited started FY27 on a strong note, reporting healthy revenue growth, higher profit after tax and a substantial order pipeline. During its Q1 FY27 earnings conference call held on August 10, 2026, the management highlighted strong execution across civil infrastructure, O&M, mining and industrial EPC, while also outlining significant opportunities in the power sector.
The company remains confident of achieving its FY27 growth, revenue and margin objectives, supported by a strong executable order book and increasing contributions from higher-margin businesses such as O&M and mining.
Q1 FY27 Financial Performance
Power Mech Projects reported revenue of ₹1,632 crore in Q1 FY27, representing a 26% year-on-year increase.
EBITDA stood at ₹176 crore, with an EBITDA margin of 10.8%, compared with a higher margin in the corresponding period last year. Management attributed the margin pressure mainly to higher material and execution costs, increased royalty costs in the KRBM project and higher overburden-removal costs in the KBP mining business.
Despite these pressures, profitability remained strong:
- Profit After Tax: ₹89 crore, up 11% YoY
- PAT after minority interest: ₹80 crore, up 53% YoY
- EPS: ₹25.23 versus ₹16.61 in Q1 FY26
- Standalone EBITDA margin: 11.3% versus 10.2% a year earlier
Management reiterated its confidence in achieving the full-year execution and margin targets.
Diversified Revenue Mix
The company’s diversified business model continued to support growth during the quarter.
O&M generated approximately ₹431 crore, an 8% YoY increase. The business continues to benefit from new order wins and increasing outsourcing opportunities in the power sector.
The civil segment, covering roads, railways and water distribution projects, delivered ₹796 crore, registering 28% YoY growth.
Industrial construction contributed ₹217 crore, while industrial EPC contributed ₹96 crore.
The biggest percentage growth came from mining, which generated ₹84 crore of revenue, representing a remarkable 223% YoY increase, primarily driven by the ramp-up of the KBP mine.
Geographically, 96% of revenue came from domestic operations and 4% from international operations. The power sector contributed 54% of revenue, while non-power businesses contributed 46%.
Order Inflows and Order Book
Power Mech secured approximately ₹1,864 crore of new orders during Q1 FY27 against its full-year target of ₹12,000 crore.
The company ended the quarter with:
- Total order backlog including MDO projects: approximately ₹55,398 crore
- Executable order book excluding MDO: approximately ₹16,229 crore
The order book provides significant multi-year revenue visibility across industrial construction, civil engineering, EPC and O&M.
One of the notable orders during the quarter was the O&M contract for Mumbai Monorail, which marks Power Mech’s entry into the technically demanding urban mobility segment.
Power Sector Provides a Major Growth Opportunity
Management remains particularly positive about the Indian power sector.
At the end of Q1, Power Mech had mapped approximately ₹20,500 crore of opportunities in the power sector and another ₹8,500 crore in infrastructure and related areas.
The company estimates a broader power-sector opportunity of around ₹60,000 crore over the next one to two years.
Management highlighted substantial capacity expansion plans from major power producers and developers, including BHEL, L&T, Adani and JSW. The company expects immediate opportunities of approximately ₹25,000 crore to ₹30,000 crore, with additional opportunities likely to emerge over the coming years.
Strong Focus on Adani and JSW Projects
Power Mech sees significant potential from private-sector power developers, particularly Adani and JSW.
The company recently secured an approximately ₹850 crore civil and structural order from JSW for its Salboni project.
Management also indicated that it continues to pursue opportunities across Adani’s upcoming projects, while tracking JSW’s planned capacity additions.
The company believes its execution track record and delivery capabilities provide an advantage when competing for these projects.
O&M Business Emerging as an Important Growth Driver
The O&M business is becoming increasingly important to Power Mech’s growth strategy.
During Q1 FY27, the company secured approximately ₹781 crore of O&M orders, taking the O&M order backlog to around ₹3,322 crore, an increase of approximately 11.8%.
Management expects India’s increasing power-generation capacity to create a growing market for outsourced plant operations and maintenance.
The company estimates an opportunity of approximately ₹800 crore to ₹1,000 crore per year from additional power-generation capacity, in addition to contract renewals and outsourcing opportunities.
Management indicated that O&M margins are currently around 18%, making this business strategically important for improving the company’s overall margin profile.
Mining Business: Major Growth Potential
Mining is another important growth engine for Power Mech.
The company expects the two MDO projects, KBP and Tasra, together to generate approximately ₹500 crore of revenue during FY27.
For FY28, management expects MDO revenue to increase substantially to approximately ₹1,100 crore–₹1,200 crore as production ramps up.
KBP is expected to reach approximately 4–4.2 million tonnes of production in FY28, while the Tasra mine is expected to ramp up following commissioning of its washery.
Importantly, management expects MDO margins to improve as both mines approach their rated capacities. The current margin is around 15%, with higher margins expected as production scales up.
KRBM Project Faces Margin Pressure
The KRBM business experienced margin pressure because of changes in the royalty structure and higher enforcement-related costs.
The project generated approximately ₹700 crore of revenue last year, and management expects revenue of approximately ₹700–₹750 crore in FY27.
However, EBITDA margin declined from approximately 14% last year to around 10% in Q1 FY27. Management expects the margin to remain around 10%–11% during the remaining quarters.
FY27 Revenue Guidance Remains Intact
Despite the weaker-than-expected margin in some areas during Q1, management maintained confidence in its full-year targets.
The company is targeting approximately ₹7,300 crore of revenue for FY27.
Management also expects O&M revenue to increase from approximately ₹1,760 crore last year to around ₹2,089 crore in FY27, representing roughly 20% growth.
The company continues to target an overall 12.5% EBITDA margin for FY27.
Margin Expansion Expected Over the Long Term
One of the key takeaways from the earnings call is management’s expectation that the company’s margin profile will gradually improve as higher-margin businesses become a larger part of the revenue mix.
O&M and MDO businesses are expected to contribute increasingly to profitability.
Management is targeting approximately a 0.5 percentage-point improvement in EBITDA margin each year, with the margin potentially reaching around 14% by 2030, compared with the current 12.5% target.
Raw Material Inflation and Cost Pressure
The company has faced cost pressure from higher prices of several commodities and inputs.
Management specifically mentioned:
- Steel and alloy steel
- LNG and construction gases
- Diesel
- Crude-linked costs
The company has price variation clauses (PVC) in most contracts, which provide some protection against cost increases. However, management noted that there can be a time lag before the higher costs are reflected through the applicable indices.
Strong Customer Base and Order Visibility
Power Mech continues to execute projects for major customers including Adani, BHEL and Vedanta.
Management indicated that the outstanding order book with Adani is approximately ₹2,400 crore across around 14 projects, while BHEL-related orders under execution are approximately ₹5,300 crore across five major projects.
Vedanta contributes another approximately ₹1,551 crore of outstanding order backlog across six projects.
Construction projects generally have execution periods of around two to three years, while O&M contracts typically run for three to five years, providing visibility over future revenue.
Working Capital and Execution Capacity
Management highlighted that Power Mech has significantly expanded its workforce to support its growing order book.
The company currently has approximately 4,000 engineers and supervisors and around 50,000 total workers.
The management believes its current working-capital limits and organizational capacity can support revenue of up to approximately ₹10,000 crore, although additional annual capital expenditure of around ₹100–₹120 crore may be required to support new orders.
ETC Business Faces Temporary Weakness
The ETC business experienced a decline during Q1 FY27.
Management attributed part of the weakness to temporary disruption at the Athena project following an accident, which affected project activity for several months.
Work has now resumed, and management expects revenue recovery from Q2 onwards. The Udupi FGD project is also nearing completion.
Importantly, management expects the combination of power construction and EPC to deliver 20%–22% growth, while overall power-sector growth is expected to remain healthy.
Key Takeaways for Investors
Power Mech Projects’ Q1 FY27 earnings call highlighted several important factors for investors to monitor:
1. Strong revenue growth: Q1 revenue increased 26% YoY to ₹1,632 crore.
2. Large order visibility: Executable order book stands at approximately ₹16,229 crore, while the total order backlog, including MDO projects, is around ₹55,398 crore.
3. Strong power-sector opportunity: Management has identified substantial upcoming opportunities in power generation, civil construction, BOP and related services.
4. O&M becoming increasingly important: Higher-margin O&M contracts are expected to support both revenue growth and margin expansion.
5. Mining ramp-up: KBP and Tasra are expected to become increasingly significant contributors to revenue and profitability.
6. Margin recovery expected: Management remains confident about achieving its FY27 EBITDA margin guidance of 12.5%.
7. Long-term margin expansion: The company expects its EBITDA margin to improve gradually and potentially reach around 14% by 2030.
8. Execution remains critical: With a large order pipeline, the ability to execute projects efficiently, control costs, and convert the order book into revenue will remain key.
Key takeways
The Q1 FY27 earnings call presents a largely positive outlook for Power Mech Projects. The company is benefiting from India’s ongoing infrastructure and power-sector investment cycle, while its expansion into O&M, mining, EPC and balance-of-plant activities is creating additional growth opportunities.
Management expects to continue targeting ₹10,000–₹12,000 crore of order inflows during FY27, supported by opportunities across power, infrastructure, mining, steel, railways and O&M.
The company’s strategy is increasingly focused on combining its traditional construction expertise with higher-margin and recurring businesses such as O&M and mining. If execution remains on track and the contribution from these businesses increases as expected, the revenue mix could gradually support stronger margins.
For investors, the key variables to watch over the next few quarters will be order inflows, execution of the ₹16,229 crore executable order book, mining production ramp-up, O&M growth, working-capital efficiency and EBITDA margin recovery.
Source: Power Mech Projects Limited Q1 FY27 Earnings Conference Call transcript, August 10, 2026. This article is a summary and interpretation of management’s comments and should not be considered investment advice.