Power Mech wins ₹970 crore Vedanta Sakti O&M deal 2026

Power Mech Projects Ltd has won a confirmed operations and maintenance (O&M) order worth ₹970.0 crore from Vedanta Power Limited for the Sakti Thermal Plant in Chhattisgarh. The company disclosed the order in a regulatory filing dated September 9, 2026. The contract covers end-to-end O&M for a 2x600 MW coal-based thermal power plant. The tenure is 60 months, offering a five-year execution runway. The order value is stated as inclusive of GST in the filing. The win adds to a steady stream of O&M contracts that the Hyderabad-based engineering and construction company has reported in recent quarters.

What the Vedanta Power order covers

The ₹970.0 crore work order relates to O&M at Vedanta’s Sakti thermal plant. Power Mech described the engagement as end-to-end, indicating full operational responsibility within the contracted scope. The plant is a 2x600 MW facility located in Chhattisgarh. The tenure of 60 months provides medium-term revenue visibility versus shorter turnaround or shutdown assignments. The order was described as confirmed, which reduces uncertainty around conversion from letter-of-intent stage. The company did not disclose any phased milestones in the provided filing excerpt, but the duration indicates sustained on-site deployment.

Why the order matters for near-term revenue visibility

Power Mech quantified the order size against its internal revenue reference. It stated that the ₹970.0 crore value accounts for roughly 60% of the company’s pre-computed average quarterly revenue of ₹1,608.73 crore. That comparison helps investors gauge the scale of a single contract relative to recent run-rate revenues. While O&M revenue is typically recognised over the contract period rather than upfront, the reference point signals material contribution potential across multiple quarters. The contract also expands the company’s operating footprint in thermal power plant services, where it has been accumulating wins.

Disclosed order book and revenue context

Alongside the order announcement, Power Mech disclosed that its total order book stands at ₹2,473.70 crore. The company added that this covers about 1.54 quarters of its average quarterly revenue. The filing also noted that annual revenue grew 15.7% year-on-year in FY26, reflecting what it described as successful translation of past order wins into top-line growth. Taken together, these disclosures position the Vedanta order as part of an execution-led growth narrative rather than a one-off award. But the relatively modest disclosed order book coverage, as stated by the company, also highlights the importance of steady order inflows.

How this fits into recent O&M wins

The Vedanta Sakti contract is not the only large O&M award mentioned in the provided material. Power Mech previously reported a 60-month O&M contract from Adani Infrastructure Management Services for the 5x660 MW thermal power plant at Tiroda, Maharashtra. That contract value was reported as ₹709.56 crore excluding GST, and in another disclosure as ₹7.10 billion, which is ₹710 crore. The company has also disclosed smaller O&M wins, including a four-year contract from Hindustan Zinc Ltd valued at ₹109.22 crore excluding GST. Another O&M order cited is ₹226.66 crore for Gujarat Mineral Development Corporation’s 250 MW (2x125) Akrimota Thermal Power Station, with a three-year duration from December 16, 2024.

Q1 FY2027 order inflows and targets mentioned

Power Mech’s disclosed quarter order inflows were approximately ₹1,864 crore in one cited update. This was described as about 15.5% of an annual target of ₹12,000 crore. The same update flagged an O&M contract for the Mumbai Monorail as an entry into urban mobility. Separately, in Q1 FY2027 earnings commentary dated August 10, 2026, the company indicated that its O&M segment contributed ₹431 crore, or 27% of total, and was up 8% year-on-year, supported by new contract wins. The earnings commentary also mentioned that margin compression tempered the top-line growth, without providing margin figures in the excerpt.

Key contract details at a glance

Comparison with other disclosed orders in the same period

Market impact and what investors typically track

The disclosures provide a clear set of datapoints that markets usually monitor for EPC and O&M companies: contract size, duration, client quality, and order book coverage. In this case, Power Mech highlighted the contract’s scale by comparing it to its average quarterly revenue. For investors, the immediate focus often shifts to how quickly such a contract ramps up, how steady the monthly billing is, and whether it supports segment-level growth without margin dilution. The company has also pointed to margin compression in its Q1 FY2027 commentary, which makes execution efficiency and cost controls important to track, even when topline is growing. The material also references a prior instance where Power Mech shares jumped nearly 5% on a separate ₹1,008.90 crore order win from JSW Thermal Energy on June 22, 2026, showing that sizeable order announcements can influence near-term stock sentiment.

Analysis: why the five-year O&M tenure is significant

A 60-month O&M contract typically indicates recurring service revenues and operational responsibility across plant performance and availability metrics. In the provided Adani contract description, Power Mech referenced a KPI-based contract framework, and while the Vedanta Sakti filing does not repeat the KPI wording in the excerpt, the long duration usually implies performance-linked expectations. Such contracts can smoothen revenue visibility compared with lumpy project execution, but they also require sustained manpower deployment and maintenance capability. Power Mech’s FY26 revenue growth of 15.7% year-on-year, as cited, suggests that earlier wins have been converted into revenues, which is a key execution marker for the sector.

Conclusion

Power Mech Projects’ confirmed ₹970.0 crore O&M order from Vedanta Power for the Sakti thermal plant adds a five-year revenue line in a core segment where the company has been actively winning contracts. The company has disclosed an order book of ₹2,473.70 crore and referenced FY26 revenue growth of 15.7% year-on-year. Investors are likely to track further order inflows against the stated annual target of ₹12,000 crore and watch how execution plays out alongside the margin commentary shared in Q1 FY2027 updates.