Power Mech Q4 FY2026: Strong execution drives 14% revenue growth, while margins stay steady

Power Mech Projects Limited closed Q4 FY2026 with a familiar pattern: healthy growth led by execution, stable profitability, and an order book that keeps future revenue visible. For the quarter ended March 31, 2026, revenue from operations rose to INR 2,110.73 crore, up 14 percent year on year. Total revenue came in at INR 2,120.67 crore, up 13 percent. EBITDA increased to INR 236.82 crore, a 2 percent year on year rise, with an EBITDA margin of 11.17 percent. Profit after tax was INR 153.42 crore, translating into a PAT margin of 7.27 percent.

The full year numbers reinforce the same story. FY2026 revenue from operations reached INR 6,061.51 crore, up 16 percent over FY2025. Total revenue was INR 6,107.25 crore, also up 16 percent. EBITDA rose 16 percent to INR 750.29 crore, with margins broadly stable at 12.29 percent. FY2026 PAT stood at INR 411.68 crore, up 18 percent.

What stands out is not only the growth itself, but the breadth behind it. Management linked the quarter’s performance to steady execution across business verticals and the ramp-up of newly secured orders, while acknowledging delays in the water division. This balance of momentum and friction matters because Power Mech is expanding into larger EPC opportunities and scaling higher value verticals, which can introduce timing and cost volatility.

Q4 performance by segment: O&M strengthens, EPC appears, MDO scales with variability

Power Mech’s Q4 FY2026 segment mix shows a company operating in multiple gears at once. O&M continued to expand, civil execution rebounded sequentially, and EPC revenue appeared in the quarterly mix after being nil in the prior comparable quarters shown. Mining Development and Operations revenue remained meaningful but moved down sequentially.

In Q4 FY2026, segment revenue was INR 557 crore from O&M, INR 945 crore from civil works, INR 78 crore from EPC, and INR 305 crore from MDO, adding up to the quarter’s INR 2,111 crore revenue from operations. Compared with Q3 FY2026, the biggest step-up came from civil works (INR 576 crore to INR 945 crore). O&M also grew (INR 436 crore to INR 557 crore). EPC contributed INR 78 crore after reporting nil in Q3 FY2026 and Q4 FY2025 in the segment chart. MDO revenue moved from INR 337 crore in Q3 FY2026 to INR 305 crore in Q4 FY2026.

Management commentary and the presentation’s segment notes frame these moves clearly. The power segment momentum remained sustained, supported by traction in industrial power construction projects. O&M growth was supported by new order inflows through the year. The MDO share has been rising, aided by the ramp-up of production at the KBP mine, even though quarter-to-quarter movement can vary.

The margin picture in Q4 is a reminder that growth alone does not guarantee operating leverage every quarter. EBITDA margin fell to 11.17 percent versus 12.43 percent in Q4 FY2025. The company attributed the dip mainly to increased operating expenses, provisions created for the new labor code, and lower other income. At the same time, PAT margin improved to 7.27 percent versus 7.00 percent in Q4 FY2025, helped by lower finance cost and reduced tax cost.

Financial snapshot

Order book and execution visibility: Strong backlog, broad-based inflows, one key cancellation

For a project-led business, the order book is the real bridge between today’s execution and tomorrow’s revenue. Power Mech reported FY2026 order inflow of INR 7,210 crore. This came in below expectations due to the unexpected cancellation of a Battery Energy Storage System order of INR 1,563 crore by WBSEDCL, as noted by management. Even with that setback, inflows were broad based across thermal power, industrial infrastructure, O&M, railways, and energy transition projects.

The backlog remains large. As on March 31, 2026, the total order backlog including MDO stood at INR 55,151 crore, up from INR 53,994 crore in FY2025. The presentation also highlights an execution-focused order book of INR 15,899 crore excluding MDO, providing more than two years of revenue visibility.

The mix of FY2026 order inflows shows where the next phase of growth is expected to come from: mechanical INR 1,054 crore, civil INR 1,343 crore, O&M INR 2,104 crore, EPC INR 2,550 crore, and MDO or renewables INR 159 crore. The backlog split is dominated by MDO or renewables at INR 39,412 crore, alongside civil INR 8,187 crore, O&M INR 2,972 crore, EPC INR 2,472 crore, and mechanical INR 2,108 crore.

This structure explains why management continues to emphasize annuity-style cash flows through long-term O&M and large-value MDO contracts, while also pushing into larger EPC packages. In practice, it means Power Mech is trying to balance three financial attributes at once: steady recurring revenue from O&M, high scale and long duration from MDO, and growth and larger ticket execution from EPC.

Segment revenue comparison (INR crore)

Strategy and positioning: Building a larger EPC engine while scaling O&M and MDO

Power Mech describes itself as a leading industrial and infrastructure services provider, with leadership in O&M services in India. The presentation cites presence across more than 75 GW unit capacity in industrial, infrastructure assets and power segments, and an O&M and AMC unit capacity of 36.25 GW. The operating model spans Erection, Testing and Commissioning, O&M, civil infrastructure, and MDO.

The strategic shift that anchors FY2026 is the move toward higher value, integrated EPC opportunities without losing sight of core services. A major milestone highlighted by management was the award of the Balance of Plant EPC package for the 1 x 800 MW Singareni thermal power project from BHEL. The company positioned this order as its entry into high value, integrated BOP EPC projects and a strategic inflection point.

At the same time, Power Mech is expanding the scope of services it can maintain and operate. The presentation notes the company entered metro O&M toward the end of FY2026, expanding the service portfolio beyond the core O&M business. This is meaningful because it indicates the company’s O&M playbook is being applied to adjacent infrastructure assets, not just thermal power plants.

Mining remains the other large lever. The company states that high-margin MDO contracts worth more than INR 39,500 crore have been operationalized, with both contracts contributing meaningfully to cash flow from operations during FY2026. That support is visible in the cash flow statement, where net cash from operating activities increased to INR 429.80 crore in FY2026 from INR 0.74 crore in FY2025, helped by improved working capital movement (changes in working capital of -88.36 crore versus -462.03 crore in FY2025).

The financial statements also show the balance sheet expanding to support this larger platform. Total assets increased to INR 5,589.36 crore at March 2026 from INR 4,614.41 crore at March 2025. Non-current assets rose to INR 1,480.87 crore from INR 889.61 crore. Current assets were INR 4,108.49 crore versus INR 3,724.80 crore. On the liabilities side, total equity increased to INR 2,589.06 crore from INR 2,182.63 crore. Borrowings show a mixed movement, with non-current borrowings increasing to INR 108.25 crore from INR 63.21 crore, while current borrowings reduced to INR 543.05 crore from INR 660.03 crore.

Management’s near-term posture is cautious but constructive. For FY2027, the company said it is cautiously optimistic and focused on targeting order inflows through increased participation in BOP EPC packages, O&M contracts, and energy infrastructure projects. It also highlighted interest in opportunities in energy storage and urban mobility, while staying focused on disciplined execution and profitability.

What to watch from here

Power Mech’s Q4 FY2026 results show a company growing at a steady clip while managing the trade-offs of a larger, more diversified portfolio. Revenue growth remained strong at 14 percent for the quarter and 16 percent for the year. Profitability held up, although quarterly EBITDA margins dipped due to higher operating expenses, provisions tied to the new labor code, and lower other income.

The bigger investment case is built around execution visibility and mix improvement. The INR 55,151 crore backlog including MDO provides scale, while the INR 15,899 crore backlog excluding MDO points to more than two years of revenue visibility for the core execution businesses. The entry into BOP EPC through the 1 x 800 MW Singareni project and the expansion into metro O&M add new growth avenues, and the operationalization of large MDO contracts is already supporting cash flow.

The near-term theme is disciplined execution with selective expansion. If the company can scale EPC without margin volatility, and keep O&M and MDO contributing stable cash flows, FY2027 could be less about proving capability and more about compounding an integrated industrial services model.