Power Mech announced this week that it has won a ₹327.35 crore, 48‑month operation‑and‑maintenance contract with Vedanta Aluminium Metal. The deal covers end‑to‑end service for 130 MW of power generation and the maintenance of a 90 MW blow‑out preventer at Vedanta Limited’s Kalahandi cogeneration plant in Odisha.
Power Mech’s filing on the BSE noted that this contract follows a ₹970 crore O&M agreement secured in September for Vedanta Power’s 2×600 MW Sakti Thermal Power Plant in Chhattisgarh. The new deal therefore expands the company’s footprint across two major Vedanta power assets.
The market reacted narrowly to the announcement. Opened at ₹2,375.10, the stock slid to an intraday low of ₹2,354.20, a 1% dip from the opening. Over the last 12 months, shares have fallen 11% and sit 21.39% below the 52‑week high of ₹3,007.50, while still 37.63% above the 52‑week low of ₹1,717.70.
In the power sector, O&M contracts are becoming a significant revenue driver as utilities seek cost‑effective maintenance solutions. Power Mech’s new contract adds depth to its portfolio, potentially improving cash‑flow stability, though the company has yet to issue forward guidance.
Investors will be watching next month for the company’s earnings release to gauge the impact of the new contract on operating margin and earnings per share. Until then, the stock remains in the red, reflecting broader market caution in the engineering‑services space.