Power stock in focus after receiving an order worth ₹1,000 Cr from Adani Group

Synopsis: Construction stock surged 5 percent after securing Rs 1,005 crore Adani Group orders, boosting the order book of  Rs 17,327 crore. The company in context saw its stock give a compounded return of 51 percent in the last 5 years.

A small-cap stock has been in the spotlight, where the company engaged in EPC, power, and infrastructure works rallied after winning a Rs 1,005 crore order from Adani Group. The deal strengthens its execution pipeline and boosts its order book of  Rs 17,327 crore and provides steady growth across civil, O&M, and erection businesses.

With a market cap of about Rs 7000 Cr, Power Mech Projects Ltd saw its stock hit an intraday high of Rs 2203 which is 5 percent higher than the previous close of Rs 2086. The company stock has given a compounded return of 25 percent in the last three years, while the five year number is at 51 percent.

What’s the News?

Power Mech Projects Ltd secured large-scale orders worth Rs 1,005 crore from subsidiaries of Adani Power Limited. The contracts involve erection, testing, commissioning, and manpower support for performance guarantee tests of steam generators and turbine generators for two ultra-supercritical thermal power projects of 2×800 MW capacity each.

The Mirzapur Phase-I project order is valued at Rs 515 crore, while the Mahan Phase-III project order stands at Rs 490 crore. Both are domestic contracts and are to be executed within 36 months from the erection start date.

The Order Book 

Power Mech Projects Ltd has an order book of Rs 17,327 crore, this is excluding the MDO works, but this order book offers over three years of revenue visibility. In FY26, it secured Rs 6,761 crore in new orders across BESS and solar, including Rs 1,270 crore in Q1, Rs 1,042 crore in Q2, Rs 2,886 crore in Q3, and in Q4 till date it has already received Rs 1,563 crore worth orders, this comes from key clients such as BHEL, Adani, SJVN, and WBSEDCL.

The Revenue Mix

In Q3 FY26, Power Mech Projects Ltd reported total revenue of Rs 1,420 crore. Civil works emerged as the largest contributor with Rs 543 crore, accounting for 39 percent of total revenue. This was followed by O&M (Operations & Maintenance) at Rs 488 crore, forming 34 percent, reflecting strong execution in service-based and recurring projects.

Erection works contributed Rs 286 crore, making up 20 percent of total revenue. MDO (Mine Developer & Operator) generated Rs 71 crore, contributing 5 percent, while electrical works stood at Rs 32 crore, accounting for the remaining 2 percent. This mix highlights a diversified revenue base with a dominant share from civil and O&M segments.

Business & Financial Overview

Power Mech Projects Ltd is an Indian engineering, procurement, and construction (EPC) company specializing in power generation, transmission, and infrastructure projects. Founded in 1999 and headquartered in Hyderabad, it delivers services across erection, testing, commissioning, civil works, and operation and maintenance for thermal, hydro, and renewable energy projects nationwide.

Its major domestic clients include NTPC, BHEL, Adani Group, Reliance Industries, Siemens, Larsen & Toubro, Tata Power, Vedanta, Coal India, Indian Oil, ONGC, and CESC. Key international clients include Siemens, GE Alstom, Mitsubishi, Hyundai, Doosan, Samsung, Dangote, ADNOC, and NOMAC, reflecting strong global EPC credentials.

In the latest quarter  the company saw a YoY revenue growth of 6 percent, going from Rs 1,338 Cr in Q3FY25 to Rs 1,420 Cr in Q3FY26, while the QoQ went up by 15 percent from Rs 1,238 Cr in Q2FY26. The YoY Net Profits growth is at 15 percent, going from Rs 87 Cr in Q3FY25 to Rs 100 Cr in Q3FY26, while the QoQ growth stood at 28 percent from Rs 78 Cr in Q2FY26.

The company has a 3 year sales CAGR of 25 percent, while the TTM is at 24 percent. The company’s 3 year profit CAGR is at 32 percent, while the TTM number is at 15 percent. The company also has a ROCE of 23 percent and a ROE of 16 percent.

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