Synopsis:
The company has won a Rs.2,500 crore order from Bharat Heavy Electricals Limited to execute the EPC package of the balance of plants at the Singareni Super Thermal Power Project, Stage-II, in Mancherial, Telangana.
The shares of a small-cap company engaged in providing full services, including erection, testing, and commissioning of boilers, turbines, and generators, as well as balance of plant work, saw increased investor interest after it received orders worth Rs.2,500 crores.
With a market capitalization of Rs.9,001.79 crores, the shares of Power Mech Projects Limited were trading at Rs.2,847.20, up by 0.84 percent from its previous day closing price of Rs.2,823.35.
Order
Power Mech Projects Limited has won a major domestic contract worth Rs.2,500 crore from Bharat Heavy Electricals Limited to work on setting up the 1 x 800 MW Singareni Super Thermal Power Plant, Stage-II, in Mancherial, Telangana.
The contract involves providing Balance of Plants, including designing, engineering, inspection, supply, construction, testing, and commissioning. The stipulated time to execute the project is within 38 months from the date of the start of the work.
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About the Company
Power Mech Projects Limited is an Indian company providing complete power infrastructure services, including erection, testing, and commissioning of boilers, turbines, and generators, as well as balance of plant, civil construction, and operation & maintenance services.
The company also works on railway projects, handling tasks like track doubling, electrification, signaling, platforms, and culverts. Recently, it has expanded into transmission and distribution projects, taking on several major assignments in this new area.
Power Mech Projects Limited has a strong customer base with well-known players like NTPC, BHEL, ONGC, NHAI, Rail Vikas Nigam Limited, Indian Oil, and Tata Power etc.
In FY25, the order backlog was Rs.53,994 crore, including significant MDO contracts worth Rs.9,294 crore and Rs.30,287 crore (executed up to June 30, 2025), but excluding a Rs.4,264 crore FGD order.
For Q1FY26, the order backlog is nearly the same at Rs.53,972 crore, showing that the company has maintained a large pipeline of future work.
The company’s order inflows were Rs.1,952 crores in FY20, rising to Rs.4,638 crores in FY21. In FY22 saw a big jump to Rs.13,525 crores, followed by Rs.8,479 crores in FY23. The highest inflow occurred in FY24 at Rs.39,197 crores, then fell to Rs.6,437 crores in FY25, and Rs. 1,270 Cr so far in FY26.
The company’s revenue rose from Rs.1,007 crore in Q1FY25 to Rs.1,293 crore in Q1FY26, while net profit increased from Rs.62 crore to Rs.81 crore during the same period. It recorded a return on equity of 16.3 percent and a return on capital employed of 22.9 percent. The P/E ratio stands at 28.41, which is higher than the industry average of 21.26.
Written by Jhanavi Sivakumar
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