Power Mech Projects Ltd Q1 FY27 Earnings Analysis

- FY27 revenue growth expected around 21% year-on-year. - MDO revenue projections: INR 500 crores in FY27, INR 1,250 crores in FY28. - MDO business mix in total revenue: 7% in FY27, increasing to 13% in FY28. - KBP mine revenue expected at INR 350 crores in FY27 and INR 500 crores in FY28. - Tasra mine production to start mid-Q4 FY27 with INR 150 crores revenue in FY27, increasing to INR 750 crores in FY28. - EBITDA margin in MDO expected to rise by 1% YoY, targeting 20% by peak rate capacity in FY29-FY30. - Overall EBITDA margin expected to improve to about 12.5% in FY27, with incremental growth of 0.25%-0.3% annually. - Order inflow target around INR 12,000 crores for FY27, maintaining INR 12,000-15,000 crores range for FY28. - Expansion in BOP EPC, O&M, and civil sectors planned, with strong multiyear revenue visibility till FY30.

- Power Mech Projects targets a revenue growth of around 21% for FY27. - EBITDA margin expected to increase gradually: from 12.3% in FY26 to 12.5% in FY27, with a projected annual rise of 0.5% till FY30, reaching around 14-14.25%. - MDO business EBITDA projected to improve by about 1% each year, reaching around 20% by FY30 from 15% currently. - Increasing share of high-margin, recurring businesses (O&M, EPC) is expected to support margin improvement. - Profit after tax grew 18% in FY26, expected to maintain growth trajectory supported by revenue and margin expansion. - Earnings and operating profits outlook is positive with a clear visibility of growth through FY30.

- Capex plan for FY27 includes around INR 400 crores addition at Power Mech level, primarily for constructing a washery. - Another INR 400 crores capex is planned for the TASRA SPV, including coal handling plant and railway siding. - Total capex for FY27 is estimated at approximately INR 800 crores, with no additional debt planned. - Strategic collaboration underway with Thyssen Group Pune for mine site material handling projects in NMDC, worth about INR 8,000 - 10,000 crores. - Ongoing efforts to enter steel sector projects leveraging existing experience in civil infrastructure and installation work. - Exploring investments and bidding opportunities in nuclear power, small modular reactors (SMRs), and coal gasification plants as strategic future avenues. - Expansion of O&M services in metro and international markets, with potential fresh investments after resolution of geopolitical challenges.

- No explicit mention of any new fundraising through debt or equity in the current or future periods. - Gross debt as of March 31, 2026, is INR 622 crores, with net debt at INR 163 crores and a comfortable debt-equity ratio of 0.32x. - Capex plans for FY27 include around INR 400 crores for washery construction and coal handling plant railway siding, to be funded without additional debt. - The company focuses on strengthening operational and financial preparedness but has not indicated plans for raising fresh debt or equity. - Operating cash flows have improved significantly, reducing reliance on working capital borrowings. - Overall, current financial strategy emphasizes internal funding and controlled debt usage without new external fundraising.

- Total order backlog including MDO contracts stands at approximately INR 55,151 crores. - Excluding MDO orders, the executable order book is around INR 15,899 crores. - Orders are primarily from the power sector (about 70%) and non-power sector (about 30%). - Average order execution tenure is about 2.5 years, with roughly 40% of the opening order value executed per year. - Pending execution in water projects stands at around INR 900 crores, with 75-80% work completion and transitioning into O&M phase. - Order inflow target for FY27 is INR 12,000 crores with expected similar range (INR 12,000-15,000 crores) for FY28, dependent on opportunity availability. - Key sectors driving the order book include thermal power BOP, metro O&M, EPC projects, steel plants, and mining sector.