Power Mech mining contracts make up Rs 39,243 crore backlog

Power Mech reported an FY27 year-to-date order backlog of Rs 56,729 crore, including Rs 39,243 crore in mining, development and operations contracts, or about 69% of the total. The mining, development and operations business was therefore the largest source of contracted backlog, although it contributed Rs 85 crore of Q2 FY27 revenue.

How much of PMPL’s FY27 backlog comes from MDO?

PMPL’s mining, development and operations, or MDO, backlog was Rs 39,243 crore in FY27 year-to-date, equal to about 69% of its Rs 56,729 crore total order backlog. MDO was the largest reported backlog segment and exceeded the combined Rs 17,486 crore backlog of Industrial Construction, Infrastructure Construction and Industrial Services.

Industrial Construction accounted for Rs 3,894 crore of backlog, Infrastructure Construction for Rs 7,903 crore and Industrial Services for Rs 5,689 crore. The concentration reflects the scale of PMPL’s mining contracts rather than its current quarterly revenue mix, because MDO remained the smallest reported revenue segment in Q2 FY27.

PMPL describes MDO as developing mine infrastructure, operating mineral-processing facilities and managing full contract mining using its execution and operations-and-maintenance capabilities. The presentation cites peak rated mining capacity of 9 million metric tonnes a year, more than Rs 39,500 crore of long-term contract value and more than 25 years of multi-decade contract tenure.

Why is MDO the largest backlog segment but a smaller revenue contributor?

MDO generated Rs 85 crore in Q2 FY27, or 5.28% of PMPL’s Rs 1,609 crore quarterly revenue, despite representing about 69% of its FY27 YTD backlog. Infrastructure Construction generated Rs 582 crore, Industrial Services generated Rs 570 crore and Industrial Construction generated Rs 372 crore during the same quarter.

MDO revenue increased by Rs 54 crore from Rs 31 crore in Q2 FY26 to Rs 85 crore in Q2 FY27. Its share of quarterly revenue rose from 2.50% to 5.28% over that period, while revenue was also Rs 1 crore higher than the Rs 84 crore reported in Q1 FY27.

Management attributed MDO’s higher revenue share to ramp-up in production at the KBP mine. PMPL also said margins are expected to trend up in coming quarters as MDO revenue scales, which is a management expectation rather than a reported segment-margin outcome.

How have PMPL’s backlog and order inflows changed?

PMPL’s FY27 YTD order backlog was Rs 56,729 crore, Rs 1,578 crore above the Rs 55,151 crore reported for FY26. The backlog was Rs 57,053 crore in FY24, fell to Rs 53,994 crore in FY25 and then increased in FY26 before reaching the FY27 YTD position.

FY27 YTD order inflow was Rs 4,801 crore, compared with Rs 7,210 crore for the full FY26. Industrial Services contributed Rs 3,718 crore and Infrastructure Construction contributed Rs 1,083 crore, with those disclosed amounts adding to the reported FY27 YTD inflow total.

The presentation shows no separate FY27 YTD order-inflow figure for Industrial Construction or MDO. Accordingly, the Rs 39,243 crore MDO backlog should be read as the reported contracted position, not as evidence that MDO accounted for a stated share of orders won during the partial FY27 period.

What is PMPL’s mining operating model?

PMPL’s MDO model combines mine-infrastructure development, mineral processing and full contract mining. The model is supported by the company’s stated execution and operations-and-maintenance experience, with a peak rated mining capacity of 9 million metric tonnes a year.

The presentation identifies MDO work at Tasra mines in Jharkhand and links Q2 FY27 MDO revenue growth to the production ramp-up at the KBP mine. It does not disclose mine-level revenue, production volumes, contract start dates or the schedule for recognising the Rs 39,243 crore MDO backlog.

The stated tenure of more than 25 years helps explain why the MDO contract value can be much larger than a single quarter’s revenue. However, PMPL does not provide a period-by-period revenue conversion schedule for its mining contracts, leaving the timing of backlog execution unresolved.

Which businesses currently generate most of PMPL’s revenue?

Infrastructure Construction and Industrial Services generated Rs 1,152 crore together in Q2 FY27, or most of PMPL’s Rs 1,609 crore quarterly revenue. Infrastructure Construction contributed Rs 582 crore and Industrial Services contributed Rs 570 crore, compared with Rs 372 crore from Industrial Construction and Rs 85 crore from MDO.

Industrial Services revenue rose from Rs 378 crore in Q2 FY26 to Rs 570 crore in Q2 FY27, while Infrastructure Construction rose from Rs 332 crore to Rs 582 crore. Industrial Construction declined from Rs 497 crore a year earlier to Rs 372 crore, but increased from Rs 313 crore in Q1 FY27.

PMPL said Q2 FY27 revenue increased 30% year on year from Rs 1,238 crore, supported by higher execution in Industrial Construction, Industrial Services and international projects. Earnings before interest, tax, depreciation and amortisation were Rs 187 crore, up from Rs 176 crore in Q1 FY27 and Rs 158 crore in Q2 FY26, while the margin was 11.55% versus 10.78% sequentially and 12.65% a year earlier.

Conclusion

PMPL’s Rs 39,243 crore MDO backlog is the defining component of its Rs 56,729 crore FY27 YTD order book, representing about 69% of the total. Current revenue remains led by Infrastructure Construction and Industrial Services, which produced Rs 1,152 crore combined in Q2 FY27, while MDO contributed Rs 85 crore and accounted for 5.28% of revenue.

The next disclosed operating measure to watch is whether production ramp-up at the KBP mine raises MDO revenue above the Q2 FY27 level of Rs 85 crore and increases its revenue mix. Management expects an uptrend in margins as MDO revenue scales and states that its strategic focus from 2027 and beyond is to become a global integrated services provider.