This small-cap power stock engaged in infrastructure services, including power plant construction, operation & maintenance, railway, water, and industrial projects, serving both domestic and international clients, skyrocketed 14 percent securing an order worth Rs. 579 crore from Bharat Heavy Electricals Limited (BHEL).
Stock Price Movement:
With a market capitalization of Rs. 7,382.40 crores, the share of Power Mech Projects Limited has reached an intraday high of Rs. 2,478.05 per equity share, rising nearly around 14.26 percent from its previous day’s close price of Rs. 2,168.85. Since then, the stock has retreated and is currently trading at Rs. 2,453.35 per equity share.
What Happened:
Power Mech Projects Limited has received a Rs. 579 crore order from Bharat Heavy Electricals Limited (BHEL) for civil, structural, and architectural works at the 2x800MW DVC Koderma (KTPS) Phase-II project in Jharkhand. The contract includes site leveling, grading, and construction of key structures such as the powerhouse, boiler, ESP, turbine generator, fan foundations, and service buildings.
The projects also cover fire protection systems, fencing, rooftop solar foundations, and worker facilities. The project is expected to be completed within 32 months from the Letter of Award (LOA) date. This is a significant achievement for the company, reinforcing its strong presence in the power infrastructure sector.
Order Book:
As of December 2025, the company has secured orders worth Rs. 4,242 crores. It also has a strong order backlog of Rs. 57,915 crores, with Rs. 18,284 crores from non-MDO projects. Looking ahead, the company is actively bidding for new projects worth Rs. 3,000 crores by March 2025 and is the lowest bidder for the Rs. 973 crore Deoghar Bypass Highway Project.
Management Guidance and Outlook:
The company aims to achieve revenue of Rs. 7,000-Rs. 7,500 crores in FY26 and around Rs. 9,000 crores in FY27. It expects EBITDA margins to improve by 0.5 percent yearly, reaching up to 1.5 percent at peak capacity. The focus is on securing profitable orders and O&M contracts while anticipating strong growth in the power sector due to new infrastructure projects.
Clientele:
The company has built strong relationships with both domestic and international clients. In India, it works with major companies like NTPC, ONGC, Reliance, Tata Power, and Indian Oil. Globally, it partners with well-known names like Siemens, GE, Mitsubishi, and Hyundai. These partnerships show its expertise in handling large-scale projects in various industries.
Recent quarter results:
Power Mech Projects Limited’s revenue has increased from Rs. 1,108 crore in Q3 FY24 to Rs. 1,338 crore in Q3 FY25, which has grown by 20.76 percent. The net profit has also grown by 40.32 percent from Rs. 62 crore in Q3 FY24 to Rs. 87 crore in Q3 FY25.
Written By – Nikhil Naik
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