Power Mech Projects Q1 FY27: Revenue +26% to INR1,632cr

Key takeaway from Q1 FY27

Power Mech Projects Limited (NSE: POWERMECH) opened FY27 with strong revenue growth, supported by execution across civil infrastructure, industrial EPC, O&M, water projects, and international work. For Q1 FY27, the company reported total revenue of INR1,632 crore, up 26% year on year. The quarter also highlighted margin pressure, with consolidated EBITDA margin coming in at 10.78% versus 13.98% in Q1 FY26. Management maintained its full-year guidance on both revenue and profitability, even as some project-level economics shifted due to policy and cost factors. The company also highlighted robust order visibility, led by a large backlog including mining development and operations (MDO) contracts. The earnings call was held on August 10, 2026.

Revenue growth led by execution across core verticals

The company said Q1 FY27 growth was driven by sustained execution across core verticals and ramp-up in civil infrastructure, industrial EPC, O&M, and international projects. Consolidated revenue from operations for Q1 FY27 was reported at INR1,623.68 crore compared with INR1,293.41 crore in Q1 FY26, a 26% year-on-year increase. The company also cited revenue from operations of around INR1,624 crore in other disclosures, broadly consistent with the consolidated number. Management attributed the quarter’s performance to higher activity levels across Civil Infra, Industrial EPC, JJM water, O&M, and international projects. In terms of sector mix, the power segment contributed 54% of revenue, while the non-power segment contributed 46%.

Profitability: EBITDA margin compression becomes the headline

Power Mech reported EBITDA of INR176.00 crore in Q1 FY27, translating to a 10.78% margin. This compared with a 13.98% EBITDA margin in Q1 FY26, indicating meaningful compression year on year. The company linked the margin pressure to higher material and execution costs tied to the ongoing Middle East conflict, and higher royalty costs in the KPM project following government orders on royalty sharing for seized quantities. Management also pointed to lower margins in the KVP mining business due to higher ore burden removal cost from opening new seams during the quarter. Despite the tighter margin, management maintained its FY27 consolidated EBITDA margin guidance of 12.5%.

PAT and EPS: mixed signals across disclosures

On the consolidated basis discussed in the earnings call, reported PAT was INR89.32 crore with a 5.50% margin, up 11% year on year, supported by lower finance costs and lower tax expenses. Separately, the company also referenced PAT after minority interest of INR80 crore, up 53% year on year. Earnings per share (EPS) was reported at INR25.23 in Q1 FY27 versus INR16.61 a year earlier. The company’s reported profit growth came alongside margin pressure, making cost control and project mix important discussion points through the call. For investors, the combination of faster EPS growth and softer EBITDA margin underscored the sensitivity of quarterly profitability to project-level execution and cost inflation.

Segment mix: Civil Infra and O&M lead the quarter

The company’s segment disclosure for Q1 FY27 showed Civil Infra as the largest contributor to revenue, followed by O&M. Civil Infra reported revenue of INR796 crore, accounting for 49% of Q1 FY27 revenue. O&M reported revenue of INR431 crore, accounting for 27%. Industrial Construction delivered INR217 crore (13%), Industrial EPC INR96 crore (6%), and MDO INR84 crore (5%). This mix highlighted the growing weight of O&M in the topline, a factor management later connected to its effort to maintain overall margin profile through higher contributions from O&M, mining, and other higher-margin businesses.

Mining: sharp growth, but cost and policy impacts are visible

The mining business reported revenue of INR84 crore in Q1 FY27, up 223% year on year, supported by ramp-up at the KBP mine. Executive Director Rohit Sajja said the company plans to produce 3 million tons at the KBP mine during the year. He also said the second mine (Washere) is expected to commission by November-December. Management indicated a combined revenue target for FY27 of INR500 crore for these mining operations. At the same time, management noted that the KRBM project’s EBITDA margin dropped to 10% in Q1 FY27 from 14% last year, citing a government royalty-sharing order and reduced seized quantities.

Orders and backlog: multi-year visibility remains a core support

Order inflows during Q1 FY27 were reported at approximately INR1,864 crore. Management framed this as about 15.5% of its full-year order inflow guidance of INR12,000 crore. The company said the quarter’s orders were well diversified across industrial construction, civil infrastructure, and O&M. A highlighted win was the O&M contract for Mumbai Monorail, which the company described as an entry into the urban mobility space. The overall order backlog stood at INR55,398 crore including MDO projects, which the company said provides roughly three years of revenue visibility when MDO is included.

Client concentration snapshots: Adani and BHEL order book details

During the Q&A, Rohit Sajja disclosed that the company has an outstanding order book of around INR2,400 crore from Adani across 14 projects. He also disclosed an outstanding order book of around INR5,300 crore from BHEL across five major projects. These figures were cited to explain the depth of ongoing execution across large customers. The disclosures also offered a clearer picture of where some near-to-medium-term revenue conversion could come from within the large consolidated backlog.

Guidance reiterated: revenue INR7,300 crore and EBITDA margin 12.5%

Management reaffirmed FY27 revenue guidance of INR7,300 crore, describing it as around 28% year-on-year growth. The company also reiterated its consolidated EBITDA margin guidance of 12.5% and its full-year order inflow target of INR12,000 crore. Management said growth would be driven by the civil infrastructure segment, mining business, and O&M. It also said it expects to maintain its margin profile through higher contributions from O&M, mining, and other higher-margin businesses. The reaffirmation came despite the margin compression seen in Q1 FY27.

Stock reaction and what investors focused on

The company’s stock fell 3.26% to 2,531.5 in the latest session mentioned alongside the earnings update. The quarterly narrative combined two signals that often pull in opposite directions: strong topline momentum and a softer EBITDA margin. Investors also had fresh datapoints around policy-driven impacts, particularly on the KRBM project margin and royalty-sharing changes. In addition, the pace of order inflow versus the full-year target and the conversion of the INR55,398 crore backlog were key practical considerations.

Summary table: Q1 FY27 snapshot

Segment revenue table: where Q1 FY27 came from

Conclusion

Power Mech’s Q1 FY27 results showed strong revenue execution, with total revenue rising 26% year on year to INR1,632 crore, while EBITDA margin compressed to 10.78%. The company underscored the role of cost pressures, royalty-related changes, and mining ramp-up costs in shaping quarterly profitability. With an order backlog of INR55,398 crore including MDO and Q1 order inflow of INR1,864 crore, management continued to emphasise visibility and diversification. The next milestones investors will track include progress toward the INR12,000 crore order inflow target, delivery against the INR7,300 crore FY27 revenue guidance, and the Washere mine commissioning expected by November-December.