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 backlog of INR 56,806 crore, providing over three years of 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, focusing 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); nine-month EBITDA: INR 513 crore (+23% YoY).

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

• EBITDA margin for nine months improved to 12.88% from 12.2% YoY.

• Operating cash flow improved to INR 113 crore for nine months FY26 from INR -253 crore last year.

Outlook and guidance

• FY26 revenue guidance revised to INR 6,000 crore due to delays in UP water division; targeting 17%-18% growth.

• FY27 revenue growth projected at 20%-25%, supported by robust order book and margin improvement from MDO ramp-up.

• Order inflow target for FY26 is INR 10,000 crore; similar or higher inflow expected for FY27.

• EBITDA margin expected to improve gradually, reaching 13.5%-14% by 2029 as MDO and washery scale up.

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