The civil construction sector in India is poised for significant growth, with projections estimating the industry to reach $1.4 trillion by 2025. Supported by a 12-15 percent revenue growth in FY2025 and a record Rs 11.2 trillion capital expenditure allocation, the sector benefits from rising investments in infrastructure, housing, and green energy projects.
Price Movement
With a market capitalization of Rs 7,816.97 crore, the shares of Power Mech Projects Ltd were trading at Rs 2,472.45 per share, decreasing around 6.75 percent as compared to the previous closing price of Rs 2,651.55 apiece.
Matter Explanation
As of March 2025, ICICI Group, a prominent domestic institutional investor, acquired 4,96,237 equity shares (1.57 percent stake) in the company. The investment was made through the ICICI Prudential ELSS Tax Saver Fund, marking a fresh entry into the stock.
Financial Highlights
The company reported a total income of Rs 1,347 crores, marking a 21 percent YoY growth from Rs 1,115 crores in Q3 FY24. EBITDA rose 13 percent to Rs 160 crores, while PAT surged 39 percent to Rs 87 crores. Despite EBITDA margin dipping to 11.87 percent (from 12.66 percent) due to higher overheads, PAT margin improved to 6.50 percent (from 5.60 percent) on account of lower tax and increased other income.
Revenue Mix
In Q3 FY25, the company reported Rs 277 crores in Mechanical business (20 percent YoY growth), Rs 522 crores in Civil (12 percent decline), Rs 481 crores in O&M (85 percent growth), Rs 25 crores in Electrical (19 percent growth), and Rs 34 crores in Mining, which had no revenue last year.
Order Book and Backlog
As of December 2025, the company secured orders worth Rs 4,242 crores, with an order backlog of Rs 57,915 crores (excluding Rs 18,284 crores from MDO). It is actively bidding for Rs 3,000 crores in new orders by March 2025 and is the L1 bidder for the Rs 973 crore Deoghar Bypass Project.
Management Guidance and Outlook
The company aims to achieve Rs 7,000–7,500 crore revenue in FY26 and around Rs 9,000 crore in FY27, with a 0.5 percent YoY rise in EBITDA margin, potentially hitting 1.5 percent. Focus remains on profitable orders, O&M contracts, and tapping strong growth in the power and infrastructure sectors amid positive market sentiment.
Strategic Focus
The company’s strategic focus includes expanding capabilities in O&M and civil works, while actively exploring new sectors such as cement plant operations and nuclear energy. It also emphasizes maintaining strong operational efficiencies and controlling overhead costs to drive improved profitability and ensure sustainable long-term growth.
Company Profile
Power Mech Projects Limited offers integrated services for boiler, turbine, and generator installation, testing, and commissioning (ETC), as well as balance of plant (BOP), civil works, and operation and maintenance. The company works in the construction and maintenance activities category.
Written by Abhishek Singh
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