Synopsis: A leading infrastructure and power construction company wins its biggest single civil works contract of the year, reinforcing its position in India’s expanding thermal power build-out.
India’s power infrastructure sector is witnessing a sharp uptick in order activity as domestic capacity addition accelerates. An engineering and construction firm focused on power plant works has secured a major civil contract for one of India’s largest private-sector thermal projects, highlighting the revival in coal-based capacity investment.
Shares of Power Mech Projects Limited, with a market capitalization of Rs.8,979 crore, are trading at a price of Rs.2,934 i.e. 3.29% up from its previous closing price of Rs.2,840.5. It is trading at a P/E ratio of 16.7.
New Order Win
Power Mech Projects Limited has secured a civil and structural works contract worth Rs 1,008.90 crore (inclusive of GST) from JSW Thermal Energy Limited. The order covers the BTG (Boiler-Turbine-Generator) area works for JSW’s 2×800 MW thermal power project being developed at Salboni, West Bengal. The contract is to be executed within 36 months from the effective date of commencement of works. The order was disclosed to the stock exchanges on June 20, 2026, in compliance with SEBI’s disclosure norms.
The Salboni project is a supercritical thermal power development by JSW Group. Civil and structural works in the BTG area are among the most technically demanding segments of a power plant build, covering the foundation, structural steel, and enclosure for the core generation equipment. Winning this scope is a strong signal of Power Mech’s execution capabilities in large-format power projects.
Financial Performance in Focus
Power Mech’s financial performance has been on a steady uptrend. For the quarter ended March 2026, the company posted revenue of Rs 2,111 crore, operating profit of Rs 226 crore, and net profit of Rs 153 crore, with an EPS of Rs 45.09. On an annual basis, the company reported FY2026 revenue of Rs 6,062 crore, up 16% year-on-year from Rs 5,234 crore in FY2025, which itself had grown 24% from Rs 4,207 crore in FY2024, reflecting a strong multi-year growth trajectory. Net profit for FY2026 stood at Rs 412 crore, up 18% from Rs 348 crore in FY2025, which had risen 40% from Rs 248 crore in FY2024.
Operating profit margins have held steady at around 11-12% over the past several years, and the company recovered strongly from an FY2021 loss year. Interest costs have risen alongside business scale, coming in at Rs 116 crore in FY2026, though earnings per share grew to Rs 115.12 in FY2026 from Rs 103.26 in FY2025, a rise of around 11%, indicating healthy underlying profitability.
Order Book Strengthening
The JSW Thermal Energy order significantly adds to Power Mech’s civil construction portfolio. As of the latest update, the company carries an order book of Rs 15,899 crore (excluding MDO contracts), providing over two years of revenue visibility. In FY2026, the company recorded new order inflows of Rs 7,210 crore, with inflows spread across all four quarters – Rs 1,270 crore in Q1, Rs 1,042 crore in Q2, Rs 2,861 crore in Q3, and Rs 2,037 crore in Q4. The year saw marquee wins from clients including BHEL, Adani, and SJVN, reflecting growing trust from large public and private sector developers.
With India aggressively pushing new thermal capacity to meet peak power demand, EPC and civil contractors with established track records in power plant construction stand to benefit from a sustained pipeline. Power Mech has historically had a strong presence in operations and maintenance, civil works, and electrical balance of plant across thermal and hydro projects.
About Power Mech Projects Limited
Power Mech Projects Limited is a Hyderabad-based engineering and construction company specialising in erection, testing, and commissioning of power plants, along with civil works, electrical works, and operations and maintenance services. The company works across thermal, hydro, and renewable energy projects for public and private sector clients across India.
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