01 — At a Glance
Construction Company Doing Everything Except Boring.
- 52-Week High / Low₹3,415 / ₹1,920
- FY25 Revenue (Full Year)₹5,234 Cr
- FY25 PAT (Full Year)₹348 Cr
- Full-Year EPS (FY25)₹103.26
- Q3 FY26 EPS (₹)₹29.73
- Book Value₹723
- Price to Book2.67x
- Debt / Equity0.42x
- Order Book (incl. MDO)₹56,800 Cr
- Order Book (excl. MDO)₹17,300 Cr
The Plot Twist Nobody Expected: Power Mech just reported Q3 FY26 revenue of ₹1,433 crore (+6% YoY), PAT of ₹100 crore (+15% YoY), and filed a ₹3,126 crore BESS order while also bidding for ₹10,000 crore of fresh work. They’ve got ₹56,800 crore in total order backlog (including two monster coal mines), expect ₹250–260 crore mining revenue in FY26, and ₹1,800–1,900 crore by FY28. Yet the stock fell 33.7% in 6 months. Either everyone’s selling before the party starts, or the market thinks coal mining is bad karma in 2026.
02 — Introduction
The Company That Built India’s Thermal Plants—Then Decided to Mine Them.
Power Mech Projects Limited, incorporated in 1999 and headquartered in Hyderabad, is a company that does so many different things that if you explained the business to your Nani at a family dinner, she’d fall asleep three times. They’re an EPC (engineering, procurement, construction) contractor for thermal power plants. They run O&M (operations and maintenance) services across 75,000 MW of installed capacity. They execute erection, testing, and commissioning work for boilers, turbines, and generators. And then, because apparently that wasn’t enough excitement, they’re now extracting coking coal through two subsidiary mining companies while building battery energy storage systems.
The company executed the first two ultra-mega power projects in India (Mundra and Sasan), has worked with every major client you’ve heard of (BHEL, NTPC, Adani, Vedanta, L&T), and quietly maintains presence in Saudi Arabia, Oman, Kuwait, Nigeria, and Bangladesh. FY25 revenue was ₹5,234 crore with PAT of ₹348 crore. YTD order intake in FY26 stands at ₹6,761 crore with targets to hit ₹10,000 crore by year-end.
On February 18, 2026, management went on a concall and revealed they’d secured ₹2,550 crore for a 1,100 MW BOP EPC contract from BHEL (Singareni project, 38-month duration) and ₹3,126 crore for a 250 MW / 1,000 MWh battery storage BOO contract in West Bengal. The stock, naturally, fell another 2.9% that day. Welcome to India Inc, where execution beats ambition and the market appreciates your shyness.
Concall Insight (Feb 2026): Management stated revenue guidance was reduced from ₹6,500 cr to ₹6,000 cr in FY26, primarily due to UP Jal Jeevan Mission funding delays and certification issues. Translation: They built stuff, won’t get paid until bureaucracy moves. Management also noted that “working capital intensity has increased” — which is auditor-speak for “arre, bhaiyon ne advance de rakha hai.”
03 — Business Model: WTF Do They Even Do?
EPC ➜ O&M ➜ Mining ➜ Energy Storage ➜ Profit(?)
Power Mech’s business breaks down into five revenue streams, each one a separate entity if it were a different company:
Civil Works (46% of FY25 revenue)
Foundations, decks, cooling towers, chimneys, coal handling plants. Basically, everything that makes a power plant NOT just a giant turbine spinning in the air. Also handles railways, metro, roads, and water projects.
O&M Services (33% of FY25 revenue)
Running 75,000 MW of operational capacity across India. Includes mechanical, electrical, control systems. Now expanding into non-power sectors: monorail, refinery, steel, drinking water. The recurring revenue baby.
Erection / BTG (17% of FY25 revenue)
Erection, Testing & Commissioning of boilers, turbines, generators. Unit capacities 150–800 MW. Includes FGD (flue gas desulfurization) and SCR (selective catalytic reduction) work. Expert-level nuts-and-bolts stuff.
MDO Mining (2% FY25 → 4–7% projection FY26–28)
Two coking coal extraction contracts from Coal India (25 years, ₹9,294 cr) and SAIL (28 years, ₹30,383 cr). FY26 projection ₹250–260 cr revenue. FY27: ₹600–700 cr. FY28: ₹1,800–1,900 cr.
Margin Reality: EPC margins hover at 10–11%. O&M margins are sticky but lower. Mining is the secret weapon—expected 15–16% margins in FY26, rising to 16–17% in FY27, then jumping to 13.5–14% consolidated margins by FY29 once the Tasra washery is operational. Every quarter you’re waiting for that washery is a quarter management is praying the coal prices don’t crater.
💬 Question for you: Power Mech is pivoting from EPC to “assets that generate recurring revenue” (O&M + BESS BOO + Mining). Does that feel like genuine transformation, or financial engineering to prop up returns?
04 — Financials Overview
Q3 FY26: The Numbers (Quarterly Results)
