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1. At a Glance
Power Mech Projects erects power plants, stays on to maintain them, and now mines coal as well.
Revenue was ₹1,624 crore in the three months to June 2026. A year earlier the figure was ₹1,293 crore, a rise of 25.5%. Operating profit came in at ₹167 crore, against ₹170 crore. Profit after tax was ₹89 crore, up 11%. Earnings per share were ₹25.23, against ₹16.61 a year earlier.
The order backlog, including mining development and operations work, stands at ₹55,398 crore. Revenue for the year to March 2026 was ₹6,062 crore. The backlog is therefore about nine times a single year of sales.
Order inflow in the quarter was ₹1,864 crore. Management describes that as 15.5% of the target for the year to March 2027. That target is ₹12,000 crore. The wins include a five-year maintenance contract for the Mumbai Monorail. A company built on erecting boilers will now look after a two-carriage railway.
Management attributes the lower margin to three causes. Royalty costs rose at the KRBM project, after a Government Order on royalty sharing for seized quantities. Overburden removal cost more at the KBP mine; overburden is the rock and soil above a coal seam. Material costs rose with the ongoing Middle East conflict. The operating margin moved by 3.2 percentage points.
CARE Ratings, a credit-rating agency, reaffirmed its CARE A+; Stable and CARE A1 ratings on 17 August 2026. The rated facility was enhanced to ₹2,900 crore. The year to March 2026 closed with revenue of ₹6,062 crore and profit after tax of ₹412 crore.
2. Introduction
Power Mech Projects Limited was incorporated in 1999 and is based in Hyderabad. It was promoted by Sajja Kishore Babu, who is Chairman and Managing Director.
By the company’s own timeline, it began with gas turbine overhauling for a major utility. That is roughly the industrial equivalent of starting a restaurant empire by fixing somebody else’s oven.
Between 2000 and 2010 it built out erection, testing and commissioning of boilers and turbines. It added overhauling and maintenance contracts for large power plants. From 2010 to 2015 it moved beyond power, into industrial plants, rail and metro, and water. It entered overseas markets in the same stretch, and prepared for a public listing around 2014-15. The company describes 2016 to 2020 as a phase of consolidation and service leadership. From 2020 to 2026 it entered mining and scaled up the order book. Its stated ambition for 2027 and beyond is to become a global integrated services provider.
CARE Ratings, a credit-rating agency, notes an operational track record of over 27 years. That record covers erection, testing and commissioning of boilers, turbines and generators. It also covers balance of plant work, civil works and plant maintenance. Balance of plant is everything in a station other than the main boiler and turbine. The company did such work for the first two ultra-mega power projects, Mundra and Sasan. It has done the same at 19 other supercritical power projects across India. Supercritical plants run steam at higher pressure and heat, burning less coal per unit.
The last twelve months have been busy in thousand-crore increments. JSW Thermal Energy awarded a ₹1,008.90 crore civil and structural order for Salboni in June 2026. A ₹709.56 crore maintenance and overhauling contract followed in March, for the Tiroda plant. Tiroda runs five units of 660 megawatts each. BHEL awarded over ₹2,500 crore of balance-of-plant work in October 2025, for an 800 megawatt unit at Singareni.
In March 2026, WBSEDCL annulled a tender and cancelled the letter of award to subsidiary PM Green. That removed ₹1,563 crore from the order book, and the guarantees were released. The project was a 250 megawatt battery store holding 1,000 megawatt hours.
CARE’s annexure lists 35 consolidated entities. They span Oman, Nigeria and Dubai, along with Saudi Arabia and Qatar. Fourteen-odd domestic joint ventures sit alongside them, with names that read like a list of acronyms.
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3. Business Model: WTF Do They Even Do?
Five segments, and the summary is short. Power Mech builds the power plant, stays on to run it, and now digs the coal for it.
Erection, testing and commissioning is the founding business. It covers full assembly of boiler, turbine and generator sets, and the plant around them. That includes flue-gas desulphurisation, which strips sulphur out of the exhaust. It also includes selective catalytic reduction, which cuts nitrogen oxides. The work runs across power, nuclear, oil and gas, and petrochemicals. Steel and minerals plants are served as well. Cumulative erection works come to 31.22 lakh tonnes. Management describes the physical ceiling with unusual candour. It says the company can build 14 to 15 large boilers at the same time. Each of those is an 800 megawatt unit, and capacity rises by one or two boilers a year.
Operations and maintenance covers 36.25 gigawatts of unit capacity. The work spans mechanical, electrical and control-and-instrumentation services, control room operation, and overhauls of boilers and turbines. Long-term annual maintenance contracts sit alongside. Management describes this as India’s largest power maintenance platform, with roughly 16% market share. Segment revenue in the quarter was ₹431 crore, up 8%.
Civil infrastructure means foundations, decks, cooling towers and coal handling plants, plus roads and bridges. Cumulative concreting works come to 33.47 lakh cubic metres. Revenue of ₹796 crore made civil the largest single segment in the quarter, up 28%.
Industrial construction did ₹270 crore, down 30%.
