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

Executive summary

• Q2 FY 2026 total income rose 19% year-over-year to INR 1,249 crore, with EBITDA up 18% and PAT up 12%.

• H1 FY 2026 total income increased 24% to INR 2,554 crore, EBITDA up 33%, and PAT up 21% year-over-year.

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

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

• Robust Q2 performance with strong order inflows and consistent value creation, setting a foundation for the next growth phase.

Financial highlights

• Q2 FY26 revenue reached INR 1,238 Cr, up 20% year-over-year; H1 FY26 revenue at INR 2,531 Cr, up 24% year-over-year.

• Q2 EBITDA at INR 158 Cr (13% margin), up 18% year-over-year; H1 EBITDA at INR 340 Cr, up 33% year-over-year.

• Q2 PAT at INR 78.1 Cr, up 12% year-over-year; H1 PAT at INR 158.6 Cr, up 21% year-over-year.

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

• Negative operating cash flow improved to INR 63 crore from INR 166 crore year-over-year, mainly due to better receivables realization.

Outlook and guidance

• FY 2026 revenue target set at INR 6,500 crore, with 25% year-on-year growth expected.

• Margins anticipated to remain stable, with potential upside from O&M and mining segments.

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

• Order inflow target for FY 2026 is INR 10,000 crore, with robust pipeline in power, infra, and steel sectors.

• Order backlog stands at over INR 56,000 Cr, providing more than three years of revenue visibility.