Power Mech Projects (POWERMECH) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached INR 1,433 crore, up 6% year-over-year, with EBITDA of INR 173 crore, up 8% year-over-year and margins at 12.08%.

• PAT for Q3 was INR 100 crore, a 15% increase year-over-year, with PAT margin improving to 7.02%.

• Order inflow YTD reached INR 6,761 crore, with a robust and diversified order backlog of INR 56,806 crore, providing multi-year revenue visibility.

• Strategic wins in EPC, O&M, and renewable projects, including a major BOP EPC package from BHEL and a 250 MW/1,000 MWhr BESS project from WBSEDCL.

• Diversification into non-power sectors and energy storage, with a focus on long-term annuity contracts and recurring revenue streams.

Financial highlights

• Q3 revenue: INR 1,433 crore (+6% YoY); nine-month revenue: INR 3,987 crore (+17% YoY).

• Q3 EBITDA: INR 173 crore (+8% YoY), margin at 12.08%; nine-month EBITDA: INR 513 crore (+23% YoY), margin at 12.88%.

• Q3 PAT: INR 100 crore (+15% YoY), margin at 7.02%; nine-month PAT: INR 258 crore (+19% YoY).

• Operating cash flow improved to INR 113 crore for nine months, from INR -253 crore last year.

• Gross debt at INR 833 crore, net debt at INR 233 crore as of Dec 2025; debt/equity ratio at 0.35x.

Outlook and guidance

• FY 2026 revenue guidance revised to INR 6,000 crore due to delays in UP water division; targeting 17%-18% growth, possibly up to 20%.

• FY 2027 revenue growth projected at 20%-25%, supported by strong order book and margin improvement from MDO ramp-up.

• Order inflow guidance for FY 2027 is at least INR 10,000 crore.

• EBITDA margin expected to improve by 0.25% annually, reaching 13.5%-14% by 2029.

• Expecting margin uptrend as MDO revenue scales up and digital transformation enhances efficiency.