This article first appeared on GuruFocus .
Release Date: November 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Power Mech Projects Ltd ( BOM:539302 ) reported a 19% increase in total income for Q2 FY26, reaching INR 1,249 crore.
-
EBITDA increased by 18% to INR 158 crore compared to the previous year.
-
The company secured new orders worth INR 1,042 crore during Q2 FY26, with a robust order backlog of INR 53,776 crore.
-
The electrical business saw a significant growth of 138% year-over-year, driven by railway civil and signaling telecommunication works.
-
The company is targeting a revenue of INR 6,500 crore for FY26, with an expected 25% year-on-year growth.
Negative Points
-
The PAT margin declined from 6.7% to 6.3% due to increased finance and depreciation costs.
-
The civil segment revenue decreased by 22% due to extended delays in key projects and delayed bill certifications.
-
Net current asset days increased from 128 to 151 days, primarily due to delays in certification of waterworks and realization of receivables.
-
The company's return on equity and return on capital employed saw a slight decrease due to higher finance and tax costs.
-
The company faces challenges in the water division with delays in bill certification and non-allocation of funds.
Q & A Highlights
Q: How much is your outstanding receivables from the JJM projects? A: It is around 226 crore. After the last year, there has been no fund allocation to this project, and work executed to the extent of 220 crore is under certification. So, the total receivable and work in progress together is 446 crore. - CEO
Q: Are there any plans to reduce dependency on the power sector, especially thermal power plants, considering environmental concerns post-2030? A: The CO2 emissions need to come down, and while there is a short-term plan to maintain stability by adding 80,000 to 100,000 megawatts, these plants will run for another 25-30 years. We are also focusing on non-power sectors like steel, infrastructure, and oil and gas for diversification. - Director of Business Development
Q: Why hasn't the company participated in large BOP opportunities from NTPC? A: NTPC took a different pre-qualification route, and we were only qualifying as a consortium partner. However, we are now qualifying for these tenders and will participate in future opportunities. - Director of Business Development
Q: What is the expected production from the MDO side for FY26 and FY27? A: For the CCL mine, we anticipate 1 to 1.2 million tons before March 26, translating to 140 to 150 crore in top-line. For the sale mine, we expect 360,000 to 400,000 tons, translating to 57 to 65 crore. Significant ramp-up is expected in FY27. - CFO
Q: What is the company's guidance for FY26 and FY27 in terms of revenue and margins? A: For FY26, we are projecting around 6,200 to 6,300 crore in revenue, representing an 18% growth. For FY27, we expect a 20 to 25% growth, with revenue between 7,500 to 8,000 crore. Margins are expected to improve by 0.25 to 0.5%. - CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
