Power Mech Projects Ltd has secured a significant ₹709.56 crore contract from Adani Infrastructure Management Services Ltd for operations and maintenance (O&M) services at a large thermal power plant in Maharashtra. While the order strengthens the company’s long-term revenue visibility, recent financial performance and a sharp stock decline reflect investor caution.
The contract pertains to O&M services, including overhauling, for the 5×660 MW thermal power plant located in Tiroda, Maharashtra. The agreement will be executed under a KPI-based structure, indicating performance-linked service delivery.
The project tenure spans five years, from April 1, 2026 to March 31, 2031, providing stable and recurring revenue over the medium term. The scope includes comprehensive plant operations, maintenance, and overhaul support in line with tender specifications.
Power Mech clarified that the contract has been awarded by a domestic entity and does not fall under related-party transactions. The total contract value stands at ₹709.56 crore, excluding GST.
In its Q3FY26 results, Power Mech reported a 14.6% year-on-year increase in net profit to ₹94 crore, compared to ₹82 crore in the corresponding period last year.
Revenue from operations also grew by 6.1% YoY to ₹1,419 crore. However, operating performance showed weakness, with EBITDA declining 20.7% to ₹159.3 crore from ₹201 crore a year ago.
EBITDA margins contracted sharply to 11.2%, down from 15% in the year-ago quarter, indicating rising costs or execution pressures impacting profitability.
Despite the sizable contract win from an Adani Group entity, Power Mech Projects share price declined 6.20% to close at ₹1,860 on March 16. The muted market reaction suggests that investors are focusing more on margin pressures and operational efficiency rather than order inflows alone.
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The ₹709.56 crore Adani contract reinforces Power Mech Projects’ position in the power infrastructure segment and strengthens its order book visibility. However, the divergence between revenue growth and declining margins remains a key concern. Going forward, the company’s ability to execute efficiently and restore profitability will be critical in shaping investor sentiment.
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Published on: Mar 17, 2026, 10:18 AM IST
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