Any current/future new fundraising through debt or equity?

For FY27, Power Mech Project Limited plans a capex addition of around INR 400 crores related to washery construction and coal handling plant developments. The company intends to fund this capex without incurring new debt, indicating no immediate plans for additional debt-raising. Existing gross debt as of March 31, 2026, stands at INR 622 crores with a comfortable debt-equity ratio of 0.32x, showing controlled leverage. No mention was made during the call about any forthcoming equity fundraising. Overall, the focus appears on managing growth through operational cash flows without reliance on n

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

FY27 Capex plan includes construction of a coal washery, with an estimated addition of around INR 400 crores at the Power Mech level without incurring any debt. An additional INR 400 crores capex is planned for the Tasra Coal Handling Plant and railway siding under the Tasra SPV. The washery construction is expected to be completed by Q4 FY27, with washed coal supply commencing thereafter. The company is tracking government planned investment of INR 37,500 crores for coal gasification projects, expected to emerge in 6-12 months, representing potential strategic future involvement. Strategic ti

Future growth expectations in sales/revenue/volumes?

FY27 revenue growth projected at 21%. MDO revenues to increase from INR 226 crores in Q4 FY26 to INR 500 crores in FY27 and INR 1,250 crores in FY28. MDO revenue mix expected to grow from 7% in FY27 to 13% in FY28 of total revenue. Monthly MDO revenues average INR 40-50 crores, factoring seasonality and ramp-up. Order inflow target for FY27: approximately INR 12,000 crores; similar range expected for FY28 (INR 12,000-15,000 crores). EBITDA margins expected to improve gradually by 0.5% yearly, reaching 14% by FY30 and 14.25% in FY31. MDO EBITDA margins expected to rise by 1% annual

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

Company projects a 21% revenue growth for FY27. EBITDA margin expected to improve from 12.3% in FY26 to around 12.5% in FY27, with a 0.25%-0.3% yearly increase. EBITDA margins for MDO business currently at 15%-16%, projected to increase by 1% annually, reaching ~20% by FY30. Order inflow target for FY27 is INR 12,000 crores, with a similar or higher range (INR 12,000-15,000 crores) expected for FY28. Profit after tax grew 18% in FY26; continued growth expected in line with revenue and operational improvements. Diversification into high-margin EPC and O&M businesses expected to enhance profits

Current/ Expected Orderbook/ Pending Orders?

Total order backlog including MDO contracts: ~INR 55,151 crores Executable order book excluding MDO: ~INR 15,899 crores Current year's order inflow target: INR 12,000 crores (FY27) Order inflow achieved in FY26: INR 7,210 crores (72% of target) Pending water projects order execution: INR 900 crores (balance to be executed) Railway segment order book: INR 700 crores Average order execution tenure: ~2.5 years with 40% executed annually Major clients include Adani (~INR 3,200 crores) and BHEL (~INR 4,700 crores) Opportunities potential size for current year: ~INR 70,000 crores in

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Power Mech Projects LtdQ1 FY26Construction

Power Mech Projects Ltd Q1 FY26 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 2

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→FY27 revenue growth projected at 21%.
→MDO revenues to increase from INR 226 crores in Q4 FY26 to INR 500 crores in FY27 and INR 1,250 crores in FY28.
→MDO revenue mix expected to grow from 7% in FY27 to 13% in FY28 of total revenue.
→Monthly MDO revenues average INR 40-50 crores, factoring seasonality and ramp-up.
→Order inflow target for FY27: approximately INR 12,000 crores; similar range expected for FY28 (INR 12,000-15,000 crores).
→EBITDA margins expected to improve gradually by 0.5% yearly, reaching 14% by FY30 and 14.25% in FY31.
→MDO EBITDA margins expected to rise by 1% annually to peak rate capacity of 20-21% by FY29/FY30.
→Increasing contribution from O&M and EPC business expected to enhance margins and revenue mix.
→Strong order backlog (~INR 55,151 crores including MDO) provides multi-year revenue visibility.

Margin guidance

Category 2

→Company projects a 21% revenue growth for FY27.
→EBITDA margin expected to improve from 12.3% in FY26 to around 12.5% in FY27, with a 0.25%-0.3% yearly increase.
→EBITDA margins for MDO business currently at 15%-16%, projected to increase by 1% annually, reaching ~20% by FY30.
→Order inflow target for FY27 is INR 12,000 crores, with a similar or higher range (INR 12,000-15,000 crores) expected for FY28.
→Profit after tax grew 18% in FY26; continued growth expected in line with revenue and operational improvements.
→Diversification into high-margin EPC and O&M businesses expected to enhance profits and earnings per share over time.
→Margins to improve driven by increased O&M revenue mix and MDO business scaling up.

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Fundraise plans

→For FY27, Power Mech Project Limited plans a capex addition of around INR 400 crores related to washery construction and coal handling plant developments.
→The company intends to fund this capex without incurring new debt, indicating no immediate plans for additional debt-raising.
→Existing gross debt as of March 31, 2026, stands at INR 622 crores with a comfortable debt-equity ratio of 0.32x, showing controlled leverage.
→No mention was made during the call about any forthcoming equity fundraising.
→Overall, the focus appears on managing growth through operational cash flows without reliance on new borrowings or equity issuance in the near term.

Order book

Yes

→Total order backlog including MDO contracts: ~INR 55,151 crores
→Executable order book excluding MDO: ~INR 15,899 crores
→Current year's order inflow target: INR 12,000 crores (FY27)
→Order inflow achieved in FY26: INR 7,210 crores (72% of target)
→Pending water projects order execution: INR 900 crores (balance to be executed)
→Railway segment order book: INR 700 crores
→Average order execution tenure: ~2.5 years with 40% executed annually
→Major clients include Adani (~INR 3,200 crores) and BHEL (~INR 4,700 crores)
→Opportunities potential size for current year: ~INR 70,000 crores in tenders and projects
→Focus on power sector (~70% of order backlog) and non-power sectors (~30%)

Capex plans

Yes

→FY27 Capex plan includes construction of a coal washery, with an estimated addition of around INR 400 crores at the Power Mech level without incurring any debt.
→An additional INR 400 crores capex is planned for the Tasra Coal Handling Plant and railway siding under the Tasra SPV.
→The washery construction is expected to be completed by Q4 FY27, with washed coal supply commencing thereafter.
→The company is tracking government planned investment of INR 37,500 crores for coal gasification projects, expected to emerge in 6-12 months, representing potential strategic future involvement.
→Strategic tie-up with Thyssen Group, Pune, for bidding and construction in iron ore material handling and process management, targeting NMDC projects worth INR 8,000 to 10,000 crores.
→Efforts to diversify into mining, steel sector, and infrastructure with focus on EPC and BOP projects, aiming order inflow target of INR 12,000 crores for FY27.

How does Power Mech Projects Ltd rank vs peers in Construction?

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