Power Mech Projects (POWERMECH) Q2 25/26 earnings summary

Executive summary

• Q2 FY 2026 total income reached INR 1,249 crore, up 19–20% year-over-year, with EBITDA at INR 158 crore (+18%) and PAT at INR 78 crore (+12%).

• H1 FY 2026 total income was INR 2,554 crore (+24% YoY), EBITDA INR 340 crore (+33%), and PAT INR 159 crore (+21%).

• Order backlog as of September 2025 stood at over INR 56,000 crore, with executable orders at INR 14,226 crore; new orders in Q2 FY 2026 totaled INR 1,042 crore.

• Market leader in India's O&M services, managing over 75 GW across industrial, infrastructure, and power segments, with a 25-year track record.

• Strategic expansion into mining, integration, and large order-book scale-up, aligning with India's infrastructure pipeline and global operations.

Financial highlights

• Q2 FY 2026 EBITDA margin was 12.7–13% (vs. 12.8% last year); PAT margin declined to 6.3% from 6.7% due to higher finance and depreciation costs.

• H1 FY 2026 EBITDA margin improved to 13.3% (from 12.5%), aided by exceptional revenue from the River Bed Mineral Project.

• Negative operating cash flow improved to INR 63 crore (from INR 166 crore negative YoY) due to better receivables realization.

• Net debt as of September 2025 was INR 360 crore, with a debt-equity ratio of 0.37x.

• EPS for Q2 FY26 at 23.7, up from 21.22 in Q2 FY25.

Outlook and guidance

• FY 2026 revenue guidance is INR 6,500 crore, with 25% YoY growth expected; actual revenue may be INR 6,200–6,300 crore due to order timing.

• Order inflow for FY26 YTD exceeds INR 4,800 crore, with a target of INR 10,000 crore for the full year.

• Order backlog provides more than three years of revenue visibility.

• Margins are expected to remain stable, with potential upside from O&M and mining segments; EBITDA and PAT margins expected to improve from Q3 as MDO operations scale up.

• FY 2027 revenue projected at INR 7,500–8,000 crore, with 20–25% growth and a 0.25–0.5% margin improvement depending on business mix.