Power Mech Projects Limited – Investor Presentation Summary

Key Operational Highlights

  • Managing 42+ GW of power-plant O&M globally, approximately one fifth of India's thermal base
  • Contributed ~9.8 GW to international grids and currently managing ~6.3 GW of O&M across MENA and West Africa
  • ₹17,317 Cr order book (excluding MDO) covers 2.5+ years of revenue
  • Executing complex projects across power, rail and metro, roads, water and mining sectors with 27 years of construction expertise

Key drivers of operational performance: Standardized processes, dedicated technical cell with digital tools for remote upkeep, expanding international presence, and diversified project execution capabilities.

Segment-wise Performance

Industrial Construction (EPC of BOP systems and ETC of BTG/BOP systems):

  • 84 GW of boiler, turbine, generator and BOP erected to date, up to 800 MW unit size
  • Singareni ₹2,550 Cr BOP EPC sets the 800 MW turnkey credential

Industrial Services (Operations and Maintenance):

  • ₹2,032 Cr of H1 FY27 O&M wins including Athena ₹970 Cr and Butibori ₹266 Cr (all five-year contracts)
  • Mumbai Monorail (₹296 Cr, 19.5 km) expands O&M into urban mobility

Infrastructure Construction (Power and Non-Power):

  • H1 FY27 added ₹855 Cr for BTG-area civil at JSW Salboni (2×800 MW) and ₹228 Cr for Vande Bharat sleeper depot

Mining Development and Operations:

  • ₹39,253 Cr of order book in mining segment
  • KBP began earning in November 2025, Tasra in steady state
  • Coking coal washery expected commissioning in December 2026

Explanation of significant changes in segment performance: Strong order inflows across all segments, particularly in O&M services and mining operations, with strategic focus on higher-margin opportunities in railways, metro depots, and specialized civil infrastructure.

Financial Highlights

Q1 FY27 Performance:

  • Revenue: ₹1,623.68 Cr (26% YoY growth)
  • EBITDA: ₹176.00 Cr
  • PAT: ₹89.32 Cr (11% YoY growth)
  • PAT after Non-Controlling Interest: ₹79.77 Cr (52% YoY growth)
  • EPS: ₹25.23

Margins:

  • EBITDA Margin: 10.78% (declined from 13.98% in Q1 FY26)
  • PAT Margin: 5.50% (declined from 6.23% in Q1 FY26)
  • PAT Margin after Non-Controlling Interest: 4.91% (improved from 4.06% in Q1 FY26)

Full Year FY26 Performance:

  • Revenue: ₹6,061.57 Cr (16% YoY growth)
  • EBITDA: ₹750.29 Cr (16% YoY growth)
  • PAT: ₹411.68 Cr (18% YoY growth)
  • PAT after Non-Controlling Interest: ₹363.99 Cr (11% YoY growth)
  • EPS: ₹115.12

Margin Trends:

  • EBITDA margins expanded 67 bps over last 5 years (11.62% → 12.29%)
  • Revenue grew ~3.2x over five years (17%+ CAGR)

Drivers of financial performance: Higher revenue growth across segments, scale-up of MDO operations, but margins impacted by higher material costs from Middle East conflict and increased royalty sharing for river dredging in KRBM project. KBP Mining margins affected by higher OB removal costs to access new seams.

Key Risks: Raw material price volatility, geopolitical conflicts affecting costs, project execution risks, and mining operational challenges during ramp-up phase.

Geographical Revenue Split

Domestic vs International Operations:

  • Strong domestic presence across power, infrastructure, and mining sectors
  • Expanding international footprint with operations in MENA and West Africa regions
  • Currently managing ~6.3 GW of O&M across international markets

Balance Sheet Snapshot

As of March 2026:

  • Total Assets: ₹5,589.36 Cr (up from ₹4,614.41 Cr in March 2025)
  • Total Equity: ₹2,589.05 Cr (up from ₹2,182.63 Cr in March 2025)
  • Reserves & Surplus: ₹2,486.77 Cr (up from ₹2,128.30 Cr in March 2025)
  • Non-Current Assets: ₹1,480.87 Cr (up from ₹889.61 Cr in March 2025)
  • Current Assets: ₹4,108.49 Cr (up from ₹3,724.80 Cr in March 2025)
  • Trade Receivables: ₹1,546.79 Cr (up from ₹1,462.22 Cr in March 2025)
  • Cash and Cash Equivalents: ₹106.71 Cr (up from ₹91.99 Cr in March 2025)

Leverage Position:

  • Non-Current Borrowings: ₹108.25 Cr
  • Current Borrowings: ₹543.05 Cr
  • Total Borrowings: ₹651.30 Cr

Financial Health Insights: Strong asset growth, improved equity base, healthy reserve accumulation, and maintained liquidity position despite business expansion.

Capex & Cash Flow Health

Capital Expenditure:

  • KBP Mine investment: ₹330 Cr (Coal Handling Plants and Mine Infrastructure)
  • KTMPL Mine investment: ₹1,350 Cr (Coal Handling Plant, Washery, Rapid Loading System and Railway Sliding: ₹950 Cr PMPL, R&R Colony: ₹400 Cr)

Cash Flow Performance (FY26):

  • Net Cash from Operating Activities: ₹387.45 Cr
  • Net Cash from Investing Activities: (₹184.16) Cr
  • Net Cash from Financing Activities: (₹188.57) Cr
  • Net Decrease in Cash and Cash equivalents: ₹14.72 Cr

Investment Rationale: Focus on mining capacity expansion through MDO contracts, technology upgrades in O&M services, and infrastructure development to support long-term growth.

Strategic & R&D Initiatives

Investments in Innovation: Digital tools for predictive maintenance, standardized O&M delivery models, technical cell equipped with digital tools for remote upkeep.

Expected impact on growth: Transition to digitally enabled technical services platform to improve asset uptime and scale execution globally. Target of 75 GW O&M capacity in 5 years (15 GW AMC, 35 GW Field O&M, 25 GW Comprehensive O&M).

Strategic Rationale: Horizontal integration from construction services to high-value EPC delivery, expanding into higher-margin O&M segments, and scaling MDO operations for sustainable recurring revenue.

Industry Trends & Business Environment

Macro/Industry Trends: CEA's generation adequacy plan targets coal capacity growth from 231 GW to 291 GW by FY32 (~60 GW new build), revised SHAKTI policy enables C&I generators to sell un-requisitioned surplus power (~55 GW opportunity), FY27 railway capex of ₹2.93 lakh Cr (+10.5%), metro expansion from 26 cities to ~20 more, coal demand reaching ~1.5 bn tonnes by 2030 against 1,043 MT produced in FY26.

Impact on Company: Expanded addressable market across power construction (₹16,000 Cr civil and structural scope), O&M services (₹15,000 Cr per annum thermal fleet opportunity plus ₹3,500 Cr from C&I generators), railway and metro infrastructure projects, and mining development operations through MDO model.

Management Commentary & Growth Outlook

Strategic Outlook: "Power Mech is transitioning into a digitally enabled technical services platform to improve uptime of assets and scale execution globally"

FY27 Guidance: Targeting ₹12,000 Cr order inflows in FY27, with YTD already achieving ₹3,113 Cr. Further margin expansion expected via capital discipline and profitable growth in MDO and O&M segments.

Market Share Targets: Aiming to scale MDO capacity ~15 MTPA over next decade, target 75 GW O&M capacity in 5 years across AMC, Field O&M, and Comprehensive O&M segments.

Risks and Opportunities: Margin pressure from input cost inflation and mining ramp-up costs, but offset by strong order book visibility, diversified business segments, and expected margin improvement from MDO scale-up and operational efficiencies.