Power Mech Projects Ltd. reported an 11.9% rise in consolidated net profit to ₹83.8 crore for the September quarter, driven by accelerating project execution across its core engineering works. Revenue from operations jumped 30% year-on-year to ₹1,609.3 crore, up from ₹1,237.9 crore in the corresponding period last year.
Yet equity markets gave the numbers a lukewarm reception.
Shares of the Hyderabad-based infrastructure company drifted 0.25% lower to trade at ₹2,400.6 on the BSE, oscillating through choppy trade as margin contraction countered strong billing momentum. The stock has gained just 5.5% so far this year.
Operating profits expanded, but profitability softened under cost pressures. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 21.8% to ₹179 crore compared with ₹147 crore in the year-ago quarter. However, the consolidated EBITDA margin compressed by 80 basis points to 11.1%, down from 11.9% recorded in the corresponding period of the previous fiscal year.
| Financial Metric | Q2 Current Period | Q2 Prior Year | YoY Change (%) | H1 Current Period | H1 Prior Year | YoY Change (%) |
|---|---|---|---|---|---|---|
| Revenue from Operations | ₹1,609.3 cr | ₹1,237.9 cr | +30.0% | ₹3,233.0 cr | ₹2,531.3 cr | +27.7% |
| Net Profit (Equity Owners) | ₹83.8 cr | ₹74.9 cr | +11.9% | ₹163.6 cr | ₹127.4 cr | +28.4% |
| EBITDA | ₹179.0 cr | ₹147.0 cr | +21.8% | — | — | — |
Beyond the quarterly margin squeeze, execution pipelines remain well protected. Power Mech held an active order book of ₹16,229 crore at the close of the June quarter, excluding its long-gestation mine development and operations (MDO) portfolio. That backlog provides revenue visibility extending beyond two years, according to the regulatory filing submitted by the company.
Power Mech concentrates business primarily in erection, civil construction, and industrial plant maintenance contracts. The company does not report isolated divisional segments in its periodic financial accounts.
Market Context: A 30% surge in top-line billings underscores swift project deployment, but an 80-basis-point drop in operating margin flags tightening spreads on newly mobilised project sites. For active market players, whether management can defend an 11% operational floor as the ₹16,229 crore order pipeline converts into billings remains the key valuation pivot.
For the six months ended September, consolidated performance reflected broad top-line traction. Revenue from operations gained 27.7% year-on-year to reach ₹3,233 crore, rising from ₹2,531.3 crore in the first half of the preceding financial year. Half-year net profit attributable to equity shareholders climbed to ₹163.6 crore against ₹127.4 crore. Profit before tax—prior to accounting for profit and loss contributions from joint ventures and associates—stood at ₹252.4 crore compared to ₹246.9 crore a year earlier.
Cash burn at the operational layer slowed to a trickle.
Net cash used in operating activities narrowed down to ₹2.85 crore during the first half, recovering from a heavier cash drain of ₹62.6 crore in the corresponding half-year stretch.
But the company directed significant funds back into heavy machinery and capital infrastructure. Capital expenditure—including purchases of fixed assets alongside capital work-in-progress—multiplied more than fivefold to ₹496.5 crore during the first six months, up from ₹96.2 crore incurred in the year-ago period. With substantial balance sheet capital now committed to project hardware, market attention shifts directly to conversion efficiency across the second half of the fiscal cycle.
| EBITDA Margin (%) | 11.1% | 11.9% | -80 bps | — | — | — |
| Capex (Assets + CWIP) | — | — | — | ₹496.5 cr | ₹96.2 cr | +416.1% |
| Net Operating Cash Outflow | — | — | — | ₹2.85 cr | ₹62.6 cr | -95.4% |