POWERMECH Q1 FY26 earnings call.
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Revenue
₹1,293 Cr
verified against source
Revenue YoY
28%
reported change
EBITDA
₹182 Cr
latest reported figure
Source
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Actual signal trajectory
Where this quarter sits.
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What the record says.
Power Mech Projects reported Q1 FY26 results with 1,134 crore revenue (+28% YoY) and 182 crore EBITDA (+48% YoY), though margins were artificially inflated by ~55 crore from exceptional Uttar Pradesh riverbed mineral revenues. 81 crore PAT (+31% YoY) included a 15 crore loss from an overseas FGD project. The order book stands at 14,391 crore executable, with 1,270 crore fresh orders in Q1. FY26 revenue guidance of 6,500 crore (25% growth) appears achievable given the 40% conversion rate of opening backlog. MDO mining operations are ramping—Kashang produced ~1.5 million cubic meters OB removal with coal production expected September 2025, while Tasar faces washery constraints limiting monthly dispatch to 50-60k tons. Working capital remains pressured by ~350 crore pending UP water project receivables awaiting central government fund release. BOP (Balance of Plant) opportunities of 10,000-12,000 crore exist in thermal sector, while FGD pipeline has shrunk to 96 crore (one project remaining). Risks include delayed order conversion, washery capacity at Tasar constraining FY26 MDO revenue to ~150 crore, and execution bandwidth challenges in scaling EPC operations.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects to achieve 6,500 crore revenue in FY26, representing 25% year-over-year growth, driven by 40% conversion of the 14,391 crore executable order book plus incremental Q1-Q4 order additions.
- Full-year order inflow target is 10,000 crore, with 1,882 crore already secured as of the call date, leaving ~8,118 crore to be booked over the remaining three quarters.
- Management guided for stable EBITDA margins in FY26 in line with FY25 levels, with potential upside depending on the contribution mix from higher-margin O&M and mining segments.
- MDO business is expected to generate ~150-200 crore annually from FY27 onwards (Kashang: 120-140 crore; Tasar: 150 crore) once washery becomes operational at Tasar (December 2026) and Kalyan Singh Tasar reaches peak capacity.
Risks flagged
- EBITDA margin of 13.95% includes ~55 crore (19% of PAT) from exceptional Uttar Pradesh riverbed mineral revenues due to unpaid royalty penalties collected from clients. This one-time gain will not repeat in subsequent quarters, implying normalized Q2+ margins closer to 11-12%.
- Coal dispatch at Tasar is limited to 50,000-60,000 tons/month due to unavailability of external washery capacity. FY26 MDO revenue guidance of ~150 crore (vs. 300-400 crore originally planned) is contingent on improving offtake arrangements, with full ramp-up only after in-house washery commissioning in December 2026.
- The company has ~350 crore locked in UP Jal Jeevan Mission receivables (230 crore certified receivables + 100 crore uncertified revenue), with central government funding delayed due to audit inquiries in some states. This has contributed to gross debt increasing to 753 crore and neutral operating cash flow in Q1.
- With only 1,882 crore orders secured against a 10,000 crore annual target through Q1, the company needs ~2,706 crore per quarter for the remaining three quarters. Management attributed Q1 weakness to seasonality but the BOP opportunity pipeline (10,000-12,000 crore) has seen delays in finalization, raising execution risk on the order target.
Key quotes
- This exceptional revenue is basically a 9 months business. Basically the Q2 probably will not have that much profit. So 9 months only operation in Q1 we got the exceptionally high sale quantity resulted more profit in the current quarter.
- Our strength now because end to end we also strengthened our engineering base... BHL also is planning to do this type of BOP in a way that it can be broken with other agencies and particularly contracts like us, you know we are better qualified to do that.
- We are planning to continue with this two only right now and we are not thinking of bidding for any new further MDOS till the time we touch the peak rate capacity and cooking coal MDO2 are there.
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