Power Mech Projects Limited, incorporated in 1999, is an engineering and construction company providing integrated service in erection, testing and commissioning (ETC) of boilers, turbines and generators and balance of plant (BOP), civil works and operation and maintenance (O&M). The company undertakes ultra mega power projects, super critical thermal power projects and sub critical power projects.
Power Mech Projects Limited, is one among the leading infrastructure-construction Companies based in Hyderabad, India with global presence and highly credited in providing spectrum of services in power and infrastructure sectors. It was established in the year 1999 by an enthusiastic engineering entrepreneur S. Kishore Babu with chosen motto of providing service with high quality, safety and time line, the three virtues still holding the Company in high esteem.
The company has established itself as a comprehensive infrastructure solutions provider with expertise spanning multiple segments. Power Mech Projects Ltd is an integrated power infrastructure services provider in India, offering erection, testing and commissioning of boilers, turbines, generators, balance of plant works, civil works, and operation and maintenance services. The company is well-known for executing major railway projects in India, and providing transmission and distribution services.
The company has 5 strategic units namely Industrial Services, Industrial Construction, Infrastructure Construction, Manufacturing & Heavy Fabrication, and Mining. These diversified business segments enable the company to serve multiple industries and reduce dependency on any single sector.
The company's global footprint extends beyond India. Additionally, it has made its mark in countries such as Libya, Yemen, Kuwait, Oman, Saudi Arabia, Bangladesh, Nigeria, and Dubai. This international presence demonstrates the company's capability to handle projects with varying complexities and regulatory requirements.
Market Cap ₹10,181 Crore as of the latest available data, with the stock showing strong performance over the past year.
Power Mech Projects Ltd announced impressive Q4 FY25 results, with net profit surging 53.8% year-on-year to ₹129.8 Crore and revenue increasing 42.4% to ₹1,853.3 Crore. The company declared a final dividend of ₹1.25 per share, pending shareholder approval.
For the full year FY25, the company demonstrated robust growth across key financial metrics:
- Net profit rose 31.61% to ₹326.48 Crore in the year ended March 2025, as against ₹248.07 Crore during the previous year ended March 2024. Sales rose 24.43% to ₹5,234.14 Crore in the year ended March 2025, as against ₹4,206.65 Crore during the previous year ended March 2024.
- EBITDA margin for FY24 stood at 12.36%. Company also had PAT of ₹248 Crore in FY24 which was 18.6% more than FY23. EPS for FY24 was ₹162.13. Company also had positive cash flow from operations in FY24 which stood at 204 Crore which displays company strong operational performance.
The company maintains a robust order book that provides strong revenue visibility. The company maintains a robust order book of INR 6,437 Crore and aims to secure an additional INR 10,000 Crore in new tenders, reflecting confidence in market opportunities, especially in infrastructure and O&M services.
The management has set ambitious targets for growth:
- May 30: Power Mech Q4 FY25: 43% revenue growth, INR6,500 Crore FY26 revenue guidance, INR10,000 Crore order inflow target.
- Company achieved its highest-ever order inflow of ₹39,197 Crore, with contributions across power and non-power sectors, including railways, civil works, and MDO. Orders worth ₹5,344 Crore were secured from the power sector, ₹3,415 Crore from the non-power sector, and ₹30,438 Crore from the MDO, ensuring a strong and diverse order book. As of March 31, 2024, the order backlog stands at ₹57,053 Crore, including MDO.
Power Mech Projects has secured several significant contracts in recent months:
- Power Mech Projects Ltd announced a significant order worth ₹971.98 Crore from Telangana Power Generation Corporation for constructing an integrated township, boosting share prices by 3%. The project includes various infrastructure works and is to be completed within 30 months.
- The project involves civil works and the erection of prefabricated structural steel for a 2 x 800 MW power project in Mirzapur, Uttar Pradesh, and is to be completed within 30 months from the date of issuance of the notice to proceed. Meanwhile, the company has secured a ₹972.135 Crore order from the National Highways Authority of India for constructing a 49 km, 4-lane bypass in Jharkhand under a hybrid annuity mode.
Power Mech Projects Limited, a leading service provider in the power and infrastructure sectors, continues to showcase growth and a solid market presence. Over the last decade, the company has established itself as a dominant player, particularly in the operations and maintenance (O&M) space, by offering comprehensive services and benefiting from both backward and forward integration. This operational synergy, combined with its consistent track record of growth and stable margins, positions Power Mech as a well-diversified and strategically poised entity.
The company's competitive advantages include With a massive range of equipment 50 ton to 350 ton, and partnerships with reputable project developers and EPC contractors, the company is well-equipped to handle jobs with international standards of quality, safety, and timelines.
As of the last reported quarter for Power Mech Projects Ltd., Promoter held 58.3%, the FII held 4.7%, DII held 23.4%, and the public held 13.6% of the total shares. This shareholding pattern indicates strong promoter confidence while maintaining reasonable institutional participation.
The company is well-positioned to benefit from India's infrastructure development push. Growing Demand for Infrastructure - With the commencement of Modi 3.0, the infrastructure sector is set to receive a significant boost. In the 2024-2025 annual budget, the government allocated ₹11,11,111 Crore for infrastructure development. Power Mech Projects stands to gain from this surge in demand, as the company specializes in the design, construction, and maintenance of power plants.
Power Mech Projects has also diversified into emerging sectors, including Power Mech has also integrated itself into the rural electrification segment, with an estimated project of ₹400 Billion, and providing inputs for the high-end manufacture of medical equipment in Andhra Pradesh as part of the 'Make in India' initiative.
