Power Mech Projects Ltd Q2FY26 – The ₹53,994-Cr Orderbook Powerhouse That Refuses to Slow Down (Even After an NCLT Scare)
1. At a Glance
Power Mech Projects Ltd — the Hyderabad-based engineering workhorse — is the kind of company that seems to survive every economic cycle by doing everything everywhere all at once. At ₹2,298 a share and a market cap of ₹7,248 crore, the company looks deceptively humble for an infrastructure player sitting on an order book worth a Himalayan ₹53,994 crore.
Its Q2FY26 numbers are the corporate equivalent of saying, “We’re tired, but still working overtime.” Revenue stood at ₹1,238 crore (up 19.5% YoY) and profit after tax at ₹74.9 crore (up 11.7% YoY). Return on Capital Employed is a muscular 22.9%, Return on Equity a respectable 16.3%, and yet the stock is down 27% in three months — perhaps because investors still have PTSD from its January 2025 NCLT admission (which, by the way, was later withdrawn).
At a P/E of 22.2 and EV/EBITDA of 10.1, the company looks neither too cheap nor too expensive — like that middle-class uncle who splurges only when it’s a “once in a lifetime deal.” With ₹735 crore in debt and zero pledges, it’s financially fit, occasionally dramatic, but always executing.
2. Introduction
Imagine a company that builds power plants, fixes them, runs them, and now digs the coal to feed them too. That’s Power Mech Projects — the Swiss Army knife of India’s infrastructure space. Incorporated in 1999, it’s gone from erecting boilers to becoming a full-blown EPC and O&M behemoth.
Its journey reads like a Bollywood script: humble beginnings, global adventures, unexpected crises, and an order book that can make larger rivals blush. From civil works to mechanical erection, electrical transmission to mine development, Power Mech is doing everything short of launching rockets.
FY25 saw it booking fresh orders worth ₹6,437 crore, a dramatic drop from ₹39,197 crore in FY24 — but before you gasp, remember that FY24 included the mega ₹30,000+ crore SAIL and Coal India MDO (mine development and operation) projects. These two alone transformed Power Mech from a mere engineering player to a mini-mining conglomerate.
Today, 73% of its massive order book is from mining. Civil works form 16%, erection 4%, O&M 5%, and electrical the remaining 2%. Clearly, the company’s shovel is as powerful as its welding torch.
And here’s the twist — despite all the chaos, Power Mech wants to clock ₹6,500 crore in revenue in FY26 with margins steady at FY25 levels. Ambitious? Sure. Impossible? Not for a company that bounced back from insolvency court to Grand Hyatt investor conferences within the same year.
3. Business Model – WTF Do They Even Do?
You know those “jack of all trades” people who do everything — from fixing fans to organizing weddings? Power Mech is that, but in the industrial world.
Here’s the breakdown of its madness:
Civil Works (46% of FY25 revenue): Think of everything you see in a power plant — foundations, cooling towers, chimneys, and even townships. If it’s made of concrete or steel, Power Mech probably built it. They’ve also moonlighted for railways, metros, roads, and water projects. Basically, if there’s dust, noise, and deadlines — they’re there.
Operation & Maintenance (33%): This is the company’s bread-and-butter, and the butter’s imported. With O&M contracts spanning Saudi Arabia, Oman, Kuwait, Bangladesh, and Nigeria, Power Mech runs plants other people merely commissioned. It’s like hiring the same chef who cooked your wedding dinner to now run your kitchen forever.
Erection Works (17%): This involves assembling the industrial equivalent of Lego sets — boilers, turbines, generators, and balance-of-plant equipment. They work across sectors like oil & gas, nuclear, and steel.
MDO – Mining (2% revenue but 73% of order book): The new toy in Power Mech’s playroom. With contracts worth ₹9,294 crore (Coal India) and ₹30,383 crore (SAIL), they’re now in the long-haul business — 25- to 28-year mining agreements that’ll keep cash flowing long after most infra projects are forgotten.
Electrical Works (1%): Power transmission, distribution, and railway overhead electrification.
Basically, Power Mech’s business model is simple: if it has steel, concrete, or coal — send the team.
