Transmission stock with revenue guidance of ₹9,000 Cr by 2027 to keep an eye on

Infrastructure stock involved in providing integrated service in erection, testing and commissioning is in focus after setting an ambitious revenue target of Rs. 9,000 crore by 2027 while aiming for strong EBITDA margin expansion. The company’s growth plans, including its MDO operations, highlight its strategic focus on scaling operations and enhancing profitability.

Price Variation 

In Friday’s trading session, the shares of Power Mech Projects Limited surged by 1.2 percent to an intra-day high of Rs.1,991.25 per share from its previous close of Rs.1,966.20 apiece. The shares later retreated before closing at Rs.1,893.70 per share.

Management Guidance

Power Mech Projects anticipates an EBITDA margin expansion of 1 percent to 1.5 percent over the next three to four years, with an additional 1.5 percent improvement expected upon reaching peak-rated capacity in the next two to three years. For the current fiscal year, the company is targeting revenue of Rs.5,200 crore, with a projected growth rate of at least 25 percent in the fourth quarter. 

Looking ahead, Power Mech aims to achieve Rs. 7,500 crore in revenue by 2026 and Rs. 9,500 crore by 2027, including its Mine Developer and Operator (MDO) operations. However, due to project delays, the company now expects revenue to be in the range of Rs. 7,000 crore to Rs. 7,500 crore in 2026 and approximately Rs. 9,000 crore in 2027.

Business Sectors

The company operates across several sectors, including Industrial Construction, Mining, Infrastructure Construction, Manufacturing & Heavy Fabrication, and Industrial Services. It handles projects in power, nuclear, refinery, petrochemicals, and oil & gas, with unit capacities ranging from 150 MW to 800 MW. 

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Capacity Enhancement 

The MDO (Mine Development and Operation) capacity expansion plan aims to achieve 15 million tons per annum (MTPA) over the next decade, backed by a significant Rs.111 lakh crore investment under the National Infrastructure Pipeline (NIP). 

The company is also undertaking notable capacity increases in other sectors. It plans to reach a unit capacity of 71,537 MW for O&M (Operation and Maintenance) and AMC (Annual Maintenance Contract) and manage over 28.98 lakh metric tons in erection works.

Reputed Clientele

In the international market, Power Mech Projects Limited features a prestigious client roster that includes General Electric, Siemens, Mitsubishi, Hyundai, Dubai Electricity and Water Authority, Dangote, and others. 

Domestically, the company serves prominent clients such as Reliance, NTPC, BHEL, Adani, L&T, RVNL, ONGC, Tata Power, and many more.

International Presence 

Power Mech Projects Limited has established a robust international presence with key power projects such as the 400 MW Dangote Oil Refinery & Petrochemicals Project in Nigeria, 660 MW at Rampal Maitree in Bangladesh, and 1,800 MW Alba PS5 CCPP in Bahrain. 

Additionally, the company has expanded into new markets, including Morocco, Jordan, Iran, UAE, and Saudi Arabia.

Financials 

For the quarter ending December 2024, the company reported revenue from operations of Rs.1,338 crore, reflecting a significant 21 percent increase compared to the same quarter in the previous year. Profit After Tax (PAT) rose by 40 percent, reaching Rs.87 crore from Rs.62 crore in the same period.

Company Profile 

Power Mech Projects Limited operates as an integrated power infrastructure services company, offering comprehensive services that include the erection, testing, and commissioning of boilers, turbines, and generators, as well as civil works and operation and maintenance services. 

Written by – Siddesh S Raskar

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