Power Mech Projects Ltd, a leading infrastructure and engineering services firm, has reported a solid financial performance for the quarter ended June 2025. The company posted consolidated revenue from operations of ₹12.93 billion and a net profit of ₹525.2 million, reflecting robust execution across its power, civil, and railway segments despite sectoral cost pressures.
Key Highlights
- Consolidated revenue from operations stood at ₹12.93 billion in Q1 FY26
- Net profit after tax reached ₹525.2 million
- EBITDA margin remained healthy at 12.7%, supported by operational efficiency
- Order book remains strong with diversified projects across sectors
Revenue Performance: Broad-Based Growth Across Segments
Power Mech’s topline growth was driven by strong execution in its core verticals and timely delivery of high-value projects.
- Power sector services contributed 46% of total revenue, with major contracts from NTPC and Adani Power progressing on schedule.
- Civil infrastructure projects, including urban metro and industrial construction, accounted for 32% of quarterly revenue.
- Railway electrification and signaling works added 14% to the topline, with new orders from South Central Railway and RVNL.
- International operations in the Middle East and Africa contributed 8%, with stable margins and timely collections.
The company’s ability to manage multi-location projects and maintain execution speed has been key to sustaining revenue momentum.
Profitability: Margin Discipline and Cost Control
Despite inflationary pressures on raw materials and labor, Power Mech maintained profitability through strategic cost management.
- EBITDA for the quarter stood at ₹1.64 billion, with a margin of 12.7%
- Raw material costs rose 5.3% year-on-year, but were offset by improved project mix and automation
- Employee expenses remained stable, with productivity gains from digital project monitoring tools
- Finance costs were contained due to better working capital management and reduced debt exposure
The company’s focus on high-margin turnkey projects and operational efficiency continues to support bottom-line growth.
Strategic Developments and Operational Focus
Power Mech is actively expanding its footprint and capabilities to tap into emerging infrastructure opportunities.
- The company secured new orders worth ₹5.79 billion from BHEL and ₹4.25 billion from Adani Power during the quarter
- A new subsidiary, PMTS Technology, was incorporated in Dubai to support international EPC operations
- Investment in mechanized construction and AI-based project tracking tools is underway to enhance delivery speed
- The company is exploring nuclear energy-related contracts following policy support in the Union Budget
These initiatives reflect Power Mech’s ambition to evolve into a full-spectrum infrastructure solutions provider.
Market Sentiment and Shareholder Value
Power Mech Projects’ stock traded at ₹3,220.20 on August 8, 2025, reflecting investor confidence in its growth trajectory.
- EPS for Q1 FY26 stood at ₹17.5, up 8.3% quarter-on-quarter
- No dividend was declared for the quarter, with management prioritizing reinvestment and debt reduction
- Analysts expect a 15–18% CAGR in revenue over the next three years, driven by order book expansion and sectoral tailwinds
The company’s disciplined capital allocation and strong execution continue to attract institutional interest.
Outlook: Positioned for Sustained Growth
Power Mech Projects remains optimistic about the infrastructure sector’s outlook and is gearing up for accelerated growth in H2 FY26.
- Management expects revenue to cross ₹55 billion for FY26, with strong contributions from civil and railway segments
- International business is projected to grow 20% year-on-year, with new bids in Africa and Southeast Asia
- The company is targeting ₹100 billion in cumulative order inflows over the next 24 months
- ESG initiatives, including solar-powered site offices and water recycling, are being scaled across projects
Conclusion
Power Mech Projects has delivered a resilient Q1 performance, balancing growth and profitability in a dynamic infrastructure landscape. With a robust order book, strategic expansion, and operational discipline, the company is well-positioned to capitalize on India’s infrastructure boom and global EPC opportunities.
Sources: Moneycontrol, Power Mech Projects official disclosures
