Any current/future new fundraising through debt or equity?

The company plans to raise around INR450 crores as term loan debt over the next couple of years, primarily for specific activities including the washery project. For FY26, INR150 crores of additional debt is expected to be added. They have already raised INR240 crores through QIP (Qualified Institutional Placement) earmarked for equity to fund the washery capex. The company intends to maintain stable net debt levels from FY25 to FY26 by focusing on receivables realization and reducing working capital utilization. Majority of the debt addition is planned for the next year, while current

Any current/future capex/capital investment/strategic investment?

Planned capex for FY26 is around INR 500 crores, including washery and regular capexes. Investment of INR 500 crores targeted during the current year for completion of the washery by September 2026. Washery equipment orders worth INR 120 crores placed, with completion expected by September 2026. Term loan of around INR 450 crores planned over the next couple of years, with INR 150 crores debt addition expected this year. QIP funds of INR 240 crores raised earmarked for equity infusion into the washery project. Regular capex expected to be INR 80-100 crores annually for normal busines

Future growth expectations in sales/revenue/volumes?

Targeting an order booking of INR10,000 crores for the current year, supported by over INR30,000 crores of identified opportunities. Expecting 20%-25% revenue growth in FY27, with execution around INR7,800-8,000 crores. New initiatives in township construction with an INR972 crores order in Telangana. Strong focus on expanding O&M infrastructure business and Balance of Plants (BOP) projects, leveraging in-house execution strengths. Growth driven by new power sector installations including thermal, solar, and battery energy storage projects. Anticipating international infrastructure o

Future growth expectations in earnings/operating earnings/profits/EPS?

Targeting 20%-25% revenue growth for FY26 and FY27 with execution expected around INR7,800-8,000 crores in FY27. INR10,000 crores order inflow targeted for the current year, supported by strong pipeline of more than INR30,000 crores in opportunities. EBITDA margins likely to be stable in FY26 due to initial establishment costs for new power sector orders and MDO business ramp-up, with margin improvement expected post peak capacity. PAT margins improved in FY25 to 6.2%; operating margins expected to normalize with better receivables realization. Return on equity improved to 16.26% in FY25; retu

Current/ Expected Orderbook/ Pending Orders?

As of March 31, 2025, the total order backlog stands at around INR58,258 crores. After excluding non-moving FGD orders worth INR4,264 crores, the backlog is INR53,994 crores. Further excluding two MDO projects, the executable order book is INR14,387 crores. Additional INR972 crores worth of orders secured during Q1 FY26, totaling approx. INR15,359 crores executable orders. MDO order book is substantial with a long execution period of 25-28 years. Targeting INR10,000 crores of new order inflow in FY26, driven mainly by power sector orders. Expected conversion rate: around 40% of opening order b

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Power Mech Projects LtdQ1 FY25Construction

Power Mech Projects Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹2,720P/E: 23.2Market Cap: ₹7.8K CrSector: Construction

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Targeting an order booking of INR10,000 crores for the current year, supported by over INR30,000 crores of identified opportunities.
→Expecting 20%-25% revenue growth in FY27, with execution around INR7,800-8,000 crores.
→New initiatives in township construction with an INR972 crores order in Telangana.
→Strong focus on expanding O&M infrastructure business and Balance of Plants (BOP) projects, leveraging in-house execution strengths.
→Growth driven by new power sector installations including thermal, solar, and battery energy storage projects.
→Anticipating international infrastructure opportunities in the Middle East and Africa through local JVs.
→Mining segment showing progress with projected revenue of INR272 crores from MDO projects in FY26, contributing to overall sales.
→Water division expected to normalize post-certification and fund allocation delays, improving revenue and cash flow.

Margin guidance

Category 3

→Targeting 20%-25% revenue growth for FY26 and FY27 with execution expected around INR7,800-8,000 crores in FY27.
→INR10,000 crores order inflow targeted for the current year, supported by strong pipeline of more than INR30,000 crores in opportunities.
→EBITDA margins likely to be stable in FY26 due to initial establishment costs for new power sector orders and MDO business ramp-up, with margin improvement expected post peak capacity.
→PAT margins improved in FY25 to 6.2%; operating margins expected to normalize with better receivables realization.
→Return on equity improved to 16.26% in FY25; return on capital employed expected to improve with resolution in water division receivables.
→New initiatives in township construction, power sector BOP, and Middle East infrastructure investments provide additional growth pathways.
→Battery energy storage and solar power investments targeted for new energy business growth.
→Overall profitable growth momentum expected with stable or improving margins as new projects mature.

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Fundraise plans

Yes

→The company plans to raise around INR450 crores as term loan debt over the next couple of years, primarily for specific activities including the washery project.
→For FY26, INR150 crores of additional debt is expected to be added.
→They have already raised INR240 crores through QIP (Qualified Institutional Placement) earmarked for equity to fund the washery capex.
→The company intends to maintain stable net debt levels from FY25 to FY26 by focusing on receivables realization and reducing working capital utilization.
→Majority of the debt addition is planned for the next year, while current year capex will be funded partly by QIP funds and limited debt.

Order book

→As of March 31, 2025, the total order backlog stands at around INR58,258 crores.
→After excluding non-moving FGD orders worth INR4,264 crores, the backlog is INR53,994 crores.
→Further excluding two MDO projects, the executable order book is INR14,387 crores.
→Additional INR972 crores worth of orders secured during Q1 FY26, totaling approx. INR15,359 crores executable orders.
→MDO order book is substantial with a long execution period of 25-28 years.
→Targeting INR10,000 crores of new order inflow in FY26, driven mainly by power sector orders.
→Expected conversion rate: around 40% of opening order book executed annually.
→Some specific adjustments: non-moving FGD orders of INR4,264 crores excluded.
→Temporary delay in water division orders due to funding issues, with INR425 crores of works executed but pending certification.
→Overall, the order book is considered comfortable with steady growth prospects.

Capex plans

Yes

→Planned capex for FY26 is around INR 500 crores, including washery and regular capexes.
→Investment of INR 500 crores targeted during the current year for completion of the washery by September 2026.
→Washery equipment orders worth INR 120 crores placed, with completion expected by September 2026.
→Term loan of around INR 450 crores planned over the next couple of years, with INR 150 crores debt addition expected this year.
→QIP funds of INR 240 crores raised earmarked for equity infusion into the washery project.
→Regular capex expected to be INR 80-100 crores annually for normal business activities going forward.
→Strategic investment includes INR 972 crores order received from Telangana Generation Company related to township construction.
→Company is also expanding in O&M infrastructure and new power sector opportunities, leveraging in-house execution strengths.

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