Power Mech Projects Powers Up!
Power Mech Projects Limited is having a moment! On Monday morning, March 24, 2025, its shares soared 5% on the National Stock Exchange (NSE), hitting ₹2,279 apiece. The spark? A hefty ₹579 crore (excluding GST) order from Bharat Heavy Electricals Limited (BHEL), one of India’s engineering giants. This deal has investors buzzing, and for good reason—it’s a sign that Power Mech is flexing its muscles in the infrastructure and power sector like never before.
But that’s not all. The Hyderabad-based company also recently bagged another ₹164.62 crore order from BHEL, adding more fuel to its growth engine. With a solid track record, a global footprint, and financials that are turning heads, Power Mech is proving it’s a force to reckon with. Let’s dive into the details of these wins, what they mean for the company, and why the stock’s climbing higher.
The Big ₹579 Crore BHEL Order: What’s It All About?
Power Mech has landed a blockbuster contract worth ₹579 crore from BHEL, and it’s no small feat. This order is all about civil, structural, and architectural work for the 2×800 MW DVC Koderma Thermal Power Station (KTPS) Phase-II in Jharkhand. Think of it as building the backbone of a massive power plant—everything from foundations and chimney rafts to service buildings, transformer yards, ducting, labor hutments, piping, switchyards, and more.
The timeline? Power Mech has 36 months from the date of the Letter of Allotment (LoA) to wrap this up. That’s three years to turn blueprints into a fully functional power hub, and given their expertise, they’re more than up for the challenge. This isn’t just a paycheck—it’s a chance to showcase their skills on a high-stakes project with a trusted partner like BHEL, a public sector heavyweight known for its role in India’s energy infrastructure.
Bonus Win: ₹164.62 Crore Koderma Order
As if ₹579 crore wasn’t enough, Power Mech also snagged a ₹164.62 crore order from BHEL for the same Koderma TPS Phase-II project. This one’s a bit different—it covers the main supply, including design and engineering, mandatory spares, and civil works like erection and commissioning (E&C). The catch? They’ve got 30 months from the LoA to get it done.
Together, these orders total over ₹743 crore, making BHEL a key client in Power Mech’s latest haul. It’s a double dose of confidence in their ability to handle complex, large-scale projects—exactly the kind of work that’s put them on the map.
Why the Stock Jumped 5%
Monday’s 5% surge to ₹2,279 isn’t just a random blip—it’s the market saying, “We see you, Power Mech!” Investors love a good order win, especially when it’s from a blue-chip name like BHEL. These contracts boost Power Mech’s order book, promising steady revenue over the next few years. With shares opening strong and holding gains, it’s clear the market’s betting on this company’s ability to deliver—literally and figuratively.
This isn’t a one-off either. Power Mech’s been stacking up wins—like a ₹563 crore nuclear power plant order from BHEL in May 2024 and a ₹294 crore deal from Adani Power in January 2025. The pattern? Big projects, big clients, and a stock that keeps climbing when the news hits.
Who is Power Mech Projects?
If you’re new to the name, Power Mech Projects Limited is a Hyderabad-based powerhouse (pun intended) in the infrastructure-construction game. Since 1999, they’ve carved out a niche in power generation, handling everything from erection, testing, and commissioning of boilers, turbines, and generators (BTG) to balance of plant (BOP) works, operation and maintenance (O&M), repairs, overhauling, and modernization. Oh, and they do the civil stuff too—think foundations, buildings, and all the gritty groundwork.
With a global presence spanning the Middle East, South Asia, and Africa, Power Mech isn’t just a local hero—they’re a player on the world stage. They’ve worked with giants like BHEL, NTPC, and state utilities, earning a rep for getting the job done, no matter the scale. Whether it’s a thermal plant in Jharkhand or a hydro project halfway across the globe, Power Mech’s got the tools and the talent.
Financial Firepower: Q3 FY25 Highlights
Power Mech isn’t just winning orders—they’re winning at the bank too. In the December 2024 quarter (Q3 FY25), their revenue shot up 20.8% year-on-year to ₹1,337 crore, compared to ₹1,107.5 crore the year before. Operating profit (EBITDA) climbed 12.7% to ₹150 crore, though the margin dipped slightly to 11.2% from 12.1%. The real kicker? Net profit soared 35% to ₹86 crore, up from ₹63.3 crore in Q3 FY24.
That’s a company firing on all cylinders—growth in revenue, profit, and a knack for keeping costs in check. With an order book already at ₹57,915 crore as of February 2025 (before these latest wins), Power Mech’s got a clear runway for more gains ahead.
What’s Next for Power Mech?
These BHEL orders are just the latest chapters in Power Mech’s growth story. Here’s what’s on the horizon:
1. Powering Up the Order Book
With over ₹743 crore added from these Koderma projects alone, Power Mech’s order book is ballooning. That’s years of locked-in work, giving them visibility and stability in a volatile market.
2. Diversifying the Portfolio
Power Mech’s not a one-trick pony. They’ve dipped into nuclear power (that ₹563 crore Kaiga deal), mining, railways, and even steel projects. These BHEL wins reinforce their thermal power roots, but expect more variety as India’s infra boom rolls on.
3. Execution is Key
36 months for ₹579 crore and 30 months for ₹164.62 crore means Power Mech’s got deadlines to hit. Their track record says they can do it, but any delays or cost overruns could rattle investors. For now, the market’s betting on smooth sailing.
4. Market Tailwinds
India’s pushing hard on power and infra—think coal plants, renewables, and nuclear ambitions. Power Mech’s right in the thick of it, and with BHEL as a partner, they’re plugged into the government’s big plans.
Why This Matters to You
Investors, take note: a 5% jump on a single order win shows Power Mech’s stock has legs. With a market cap hovering around ₹6,861 crore (pre-surge), it’s a mid-cap with multibagger vibes—up 350% in three years. For the average Indian, it’s about jobs, power, and progress—projects like Koderma mean more electricity and economic growth.
Wrapping Up: Power Mech’s Winning Streak
Power Mech Projects is on fire, and Monday’s 5% share surge to ₹2,279 is just the latest proof. With ₹579 crore and ₹164.62 crore orders from BHEL, a booming order book, and financials that scream growth, this Hyderabad hero’s got momentum. Whether you’re an investor or just watching India’s infra story unfold, Power Mech’s a name to know.
Key Highlights
- Stock Surge: Shares jumped 5% to ₹2,279 after the BHEL order news.
- Big Wins: ₹579 crore + ₹164.62 crore for Koderma TPS Phase-II.
- Financial Flex: Q3 FY25 revenue up 20.8%, profit up 35% YoY.
- Infra Leader: Hyderabad-based with a global footprint in power and beyond.
- Future Fuel: A growing order book and India’s infra boom spell opportunity.
From Jharkhand’s power plants to your portfolio, Power Mech’s building something big—and the market’s along for the ride.
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