Power Mech Projects wins ₹1,005 crore Adani orders

Stock jumps after Adani-linked order wins

Power Mech Projects shares moved sharply higher after the company disclosed fresh order wins from subsidiaries of Adani Power. On the NSE, the stock climbed as much as 5.68% to an intraday high of ₹2,204.40 on Wednesday, February 18, as investors reacted to the contract announcements. The company said it had secured two large domestic thermal power orders aggregating to over ₹1,000 crore. The work relates to ultra supercritical 2x800 MW thermal power projects, with Power Mech responsible for key onsite services and commissioning-linked activities. The disclosures were made through a regulatory filing.

Two contracts from Adani Power subsidiaries

Power Mech said it received a ₹515 crore order (excluding GST and other applicable taxes and cess, if any) from Mirzapur Thermal Energy (UP) Pvt Ltd. It also received a ₹490 crore order from Mahan Energen Ltd. Both entities are subsidiaries of Adani Power, according to the filing. Together, the two contracts total ₹1,005 crore. The company described the projects as large-scale domestic orders for thermal power plant execution support.

What the Mirzapur Thermal Energy order covers

For the Mirzapur Phase-I project, Power Mech’s scope includes erection, testing, commissioning, and manpower assistance for the performance guarantee test. The work covers the Steam Generator (SG) package (Package A) and the Steam Turbine Generator (STG) package (Package B). The scope is specified for Units 1 and 2 of the 2x800 MW Mirzapur Phase-I ultra supercritical thermal power project. The company positioned this as critical site support that sits close to the commissioning and performance validation stage.

Scope of work for the Mahan Energen order

For the Mahan Phase-III project, Power Mech said the scope includes onsite services for erection, testing, commissioning, and manpower assistance for the performance guarantee test. The work covers SG and STG packages and their auxiliaries. As with the Mirzapur order, this is for Units 1 and 2 of a 2x800 MW ultra supercritical thermal power project. The company’s filing emphasised the operational nature of the mandate: site execution support tied to commissioning readiness and performance testing.

Execution timeline: 36 months from NTP

Power Mech said both orders are expected to be executed within 36 months from the required erection start date as notified in the notice to proceed (NTP). The company also stated separately that execution is slated to be completed within 36 months of the notice to proceed. The timeline provides a clear window for project delivery and revenue recognition over multiple quarters. The 36-month duration also suggests sustained deployment of manpower and site resources across both locations.

Order book position and revenue visibility

Power Mech’s order book stood at approximately ₹13,754 crore as of September 30, 2024, according to the provided details. The company indicated that this provides revenue visibility for the next three years. For investors, order book size and execution schedules are closely tracked because they indicate the pace at which EPC and O&M companies can convert orders into billings. The fresh Adani Power subsidiary orders add to this broader pipeline, alongside other contracts disclosed in the same context.

Other recent orders mentioned in the updates

Separate updates cited additional Power Mech contracts beyond the Adani-linked thermal execution work. One report noted two operation and maintenance (O&M) contracts aggregating to ₹551.35 crore, excluding taxes and levies. These included a ₹498.39 crore order from SJVN Thermal (P) Ltd for commissioning support and comprehensive O&M of the coal-based supercritical Buxar thermal power project (2 x 660 MW) at Chausa in Buxar district, Bihar, with an execution period of 39 months. Another order of ₹52.96 crore from Jhabua Power related to O&M of the boiler, turbine, and generator for a 1x600 MW unit at Barela, Madhya Pradesh, for three years with a provision for a one-year extension. The text also referenced a ₹106 crore project awarded by JSPL for balance erection works and refurbishment of a 2x525 MW plant in Odisha.

What analysts’ targets indicate

The available reports cited a consensus rating that was predominantly ‘BUY’ or ‘Strong Buy’. Average 12-month price targets were stated in a range of ₹2,740 to ₹3,259.67. The same information set described this as implying an upside potential of 30% to 56% from recent trading levels. These targets are third-party estimates, but they help frame how the market is interpreting execution visibility and order inflows.

Key numbers at a glance

Why the order wins matter for the company

Thermal power contracts of this nature are execution-heavy and depend on disciplined on-site delivery, testing, and commissioning support. The disclosed scope is focused on erection, testing, commissioning, and performance guarantee testing support for SG and STG packages, which are central to plant readiness. The 36-month timeline gives investors a specific period over which these orders may contribute to activity levels, subject to project schedules and site readiness. Alongside a stated order book of ₹13,754 crore as of September 30, 2024, these additions reinforce the company’s visibility narrative that was referenced in the same set of details.

Conclusion

Power Mech Projects’ stock reaction followed the announcement of two Adani Power subsidiary orders worth ₹1,005 crore for 2x800 MW ultra supercritical thermal power projects. The company has guided that both contracts are expected to be executed within 36 months from the required erection start date mentioned in the NTP. Investors will likely track subsequent updates on project milestones, execution progress, and any further order inflows alongside the company’s broader order book position.