Power Mech Projects Limited witnessed a sharp surge of over 14% in its stock price after securing a major order worth Rs. 579 crore from Bharat Heavy Electricals Limited (BHEL). The contract, involving critical infrastructure work for the DVC Koderma Phase-II project, has bolstered investor confidence in the company.
Stock Price Surge and Market Movement
Shares of Power Mech Projects skyrocketed to an intraday high of Rs. 2,478.05 per share, marking a 14.26% jump from its previous close at Rs. 2,168.85. However, some profit-booking saw the stock settle at Rs. 2,453.35 per share by midday trading. With a market capitalization of Rs. 7,382.40 crore, the stock has remained in the spotlight as investors react positively to the latest contract win.
Details of the Rs. 579 Crore Order
Power Mech has been awarded the order by BHEL for civil, structural, and architectural work at the 2x800MW DVC Koderma Phase-II project in Jharkhand. The scope of work includes:
- Site leveling and grading
- Construction of powerhouse, boiler, ESP, and turbine generator structures
- Service buildings, fan foundations, and worker facilities
- Fire protection systems and fencing
- Rooftop solar foundation installations
The project is expected to be completed within 32 months from the Letter of Award (LOA) date, reinforcing Power Mech’s position as a key player in the power infrastructure sector.
Strong Order Book and Future Bidding Plans
The company’s order book remains robust, with secured orders worth Rs. 4,242 crore as of December 2025. Additionally, Power Mech boasts an impressive backlog of Rs. 57,915 crore, out of which Rs. 18,284 crore is from non-MDO (Mine Developer and Operator) projects.
One interesting development is that Power Mech is currently the lowest bidder for the Rs. 973 crore Deoghar Bypass Highway Project. Furthermore, the company is actively bidding for new projects worth Rs. 3,000 crore, with expectations to finalize deals by March 2025.
Revenue and Growth Outlook
Power Mech’s management has set ambitious revenue targets for the coming years. The company is aiming for revenues between Rs. 7,000 crore and Rs. 7,500 crore in FY26, with further growth to Rs. 9,000 crore in FY27.
EBITDA margins are also expected to improve by 0.5% yearly, with peak margins anticipated to rise by 1.5%. The company’s strategic focus remains on securing profitable orders and expanding its operations in the operation and maintenance (O&M) segment.
Clientele and Industry Position
Power Mech has built a strong reputation by working with major clients both in India and internationally.
Key Clients:
| Domestic Clients | International Clients |
|---|---|
| NTPC | Siemens |
| ONGC | GE |
| Reliance | Mitsubishi |
| Tata Power | Hyundai |
| Indian Oil | – |
These strategic partnerships demonstrate Power Mech’s ability to handle large-scale infrastructure projects across various industries.
Financial Performance and Recent Earnings
The company’s latest quarterly results reflect strong financial growth.
- Revenue for Q3 FY25 stood at Rs. 1,338 crore, marking a 20.76% increase from Rs. 1,108 crore in Q3 FY24.
- Net profit surged by 40.32%, rising from Rs. 62 crore in Q3 FY24 to Rs. 87 crore in Q3 FY25.
The strong earnings performance, coupled with the latest contract win, has positioned Power Mech as a growth-oriented infrastructure player in India’s power sector.
