Power Mech Projects Ltd Q3 FY26 Earnings Analysis

- FY26 revenue expected around INR6,200 - 6,500 crores, slightly below initial INR6,500 crores guidance. - FY27 projected revenue growth of 20% to 25%, targeting INR7,500 - 8,000 crores. - Mining segment ramp-up planned: - FY27 mining revenue estimated INR550 - 600 crores with EBITDA margins of 19-20%. - Peak mining revenue crossing INR2,000 crores expected by FY28 with 23-25% margins. - Power sector to remain core (~75% business), exploring steel, railways, and data centers for diversification. - Order inflow target of INR10,000 crores for FY26, near 50% achieved by Q3 start; more opportunities expected. - Solar plus battery energy storage to scale from 13.5 MW in FY26 to 100 MW solar and 200-250 MWh battery capacity in FY27. - Overall, steady to improved margins expected with increased O&M and MDO contribution from FY27 onwards.

- FY26 revenue guidance is around INR6,200-6,300 crores, slightly below earlier INR6,500 crores estimate due to order delays. - FY26 growth expected around 18% in top line. - EBITDA margins for FY26 expected to remain stable, with a potential slight bump of 0.25% due to mix changes. - FY27 revenue growth target is 20-25%, projecting INR7,500-8,000 crores. - FY27 EBITDA margin expected to increase by 0.25% to 0.5% driven by increased share of MDO and O&M businesses. - Mining segment ramp-up to significantly boost revenues and profits from FY27 onwards, with peak revenues of INR2,000+ crores and EBITDA margins of 23-25% by FY28. - Focus on renewable energy (solar + battery storage) with capacity expansions expected from FY27. - Overall, management projects steady margin profile with operating earnings benefiting from diversified segment growth and operational scale-up.

- The company is continuing investment in mining operations (MDO) with production ramp-ups expected in FY26 and FY27, including the commissioning of a washery at Tasra. - No immediate plans for fund raising, but market approach will be considered if new investment opportunities arise. - Strategic focus on expanding in power sector EPC orders, targeting INR10,000 crores order inflow in the current year. - Exploring new business areas like solar plus battery energy storage systems with plans to increase capacity in FY27 (100 MW solar and 200-250 MWh battery). - Interest in capitalizing on data centers for hardware power capacity, substations, civil works, and infrastructure. - Strong outlook for investments in steel sector expansions (SAIL, JSW, JSPL) amounting to INR3 lakh crores over 5-7 years. - Ongoing discussions with NMDC for mining-related tenders worth INR50,000 crores to enhance iron ore capacity.

- Currently, there are no plans for raising funds through debt or equity. - The management stated that if new opportunities or investment needs arise, they may consider approaching the market for funds. - Present net debt of the company is around INR360 crores. - Fundraising decisions will be opportunistic based on future requirements rather than immediate necessity.

- Total order book as of September 30, 2025, stands at approximately INR14,226 crores. - Segment-wise split: Mechanical - ~INR1,700 crores; Power civil and infra civil - ~INR9,000 crores; O&M - ~INR2,700 crores; Electrical - ~INR800 crores. - Domestic orders ~INR14,000 crores; International orders around INR220 crores. - Order inflow target for FY '26: INR10,000 crores; INR4,900 crores received so far, balance expected by March 2026. - Major ongoing BOP EPC orders total around INR2,550 crores. - Substantial balance ordering expected from BHEL, Adani, and NTPC for power sector projects amounting to INR30,000 to INR45,000 crores in ETC, civil, structural, and miscellaneous works. - Expected large future investments in steel (INR1 lakh crores by SAIL) and infrastructure sectors. - Execution cycle typically 2 to 3 years for major EPC projects.