Power Mech Proj. Q4 FY26 Earnings Analysis

- Company expects a sales/revenue growth of 20%-25% for FY27, building on the current order book and new orders. - For FY26, revised revenue guidance is around INR 6,000 crore, slightly lower than the earlier INR 6,500 crore forecast due to delays in UP Water Division billing. - Growth driven mainly by power sector orders, including Balance of Plant EPC packages and O&M contracts. - Significant opportunities identified in power sector capacity expansion from current ~220 GW to 300-320 GW over next two years. - New growth areas include Battery Energy Storage Systems (BESS) targeting 47 GW capacity by FY31-FY32 and pumped storage expansion. - Order pipeline is active, with opportunities worth INR 1,30,000-1,40,000 crore mapped across power, railways, roads, and energy transition. - O&M add-on opportunity estimated at INR 1,200-1,500 crore annually, expected to contribute to steady revenue growth. - Mining & MDO business to ramp up, with margins expected around 16%-17% in coming years.

- Power Mech Projects Limited expects revenue growth of around 20% in the next year. - EBITDA margins are projected to improve, with a forecast of 16-17% EBITDA margin from the MDO business as ramp-up happens by FY28. - The company anticipates a 20-25% growth in the coming year, driven by increased power sector capacity expansion and new orders. - O&M add-on opportunities worth INR 1,200 to INR 1,500 crores annually are expected, aiding growth. - EPS and profits are expected to benefit from strong order inflow and execution, with EBITDA up 8% YoY in Q3 FY26 and PAT up 15% YoY. - The company is optimistic about growth in new segments like BOP EPC, battery energy storage, pumped storage, and mining. - They expect overall sustained growth and improving margins supported by government investments and private sector participation.

- Power Mech Projects is undertaking a strategic capital investment in a 250-Megawatt Battery Energy Storage System (BESS) project in West Bengal, with a consortium led by Power Mech holding 51% share. - The BESS project involves a CAPEX of about INR 800 crore, expected revenue of nearly INR 103 crore per year over 15 years, totaling INR 1,563 crore. - The project duration is a short 18 months; infrastructure is available near a substation with land secured and proper contracts/agreement in place. - The company is exploring opportunities in pumped storage, aiming to increase capacity significantly, aligning with government plans to boost battery storage to 47 GW and pumped storage to 18.8 GW by FY31-FY32. - Recently secured a INR 2,550 crore EPC Balance of Plant (BOP) contract from Singareni, with a 38-month schedule and active engineering and procurement underway. - Planning to leverage synergies in civil and electromechanical packages through these strategic investments to capitalize on energy transition and infrastructure expansion.

- Current borrowings include INR 833 crore gross debt as of December 2025, consisting mainly of working capital limits and equipment loans. - Equipment loan stands at INR 98 crore with an interest rate of 7.8%, and working capital limits of INR 700 crore at 8.5% interest. - Future planned borrowings include raising term loans of INR 256 crore for KBP Mine and INR 350 crore for the washery, both at approximately 9.5% interest. - Total gross debt expected to rise by around INR 400 crore by next year (FY27). - No explicit mention of new equity fundraising was made during the call; focus is on debt financing for mining operations growth. - Financial closure for Battery Energy Storage System (BESS) projects is expected within 9 months from signing the agreement, currently in process. Overall, debt raising is underway primarily for mining expansion, with no clear mention of equity fundraising at this time.

- Total executable order backlog (excluding MDO orders): Approximately INR 17,000 crore. - Pending order book: Around INR 1,000 crore, slowed due to fund and certification issues; focus on executing O&M projects. - Order backlog growth: Increased from INR 14,387 crore to INR 15,764 crore recently. - Order breakup: Mechanical ~INR 3,000 crore, Civil ~INR 9,100 crore, O&M ~INR 2,500 crore, Electrical ~INR 1,000 crore, Solar ~INR 159 crore, BESS ~INR 1,560 crore. - Order inflow year-to-date: INR 6,761 crore, aiming INR 10,000 crore in FY26. - Order pipeline opportunities: INR 1,30,000-1,40,000 crore across sectors. - Notable orders: BOP EPC package for 800 MW Singareni thermal project; grid-scale battery energy storage system project under BOO model. - Pending execution projects resumed moderately, driven by government fund release and certification clarifications.