Power Mech Projects Ltd. (POWERMECH) AI Stock Analysis

• Market Cap: ₹69.40B
• Dividend Yield: 0.05%
• Average Volume (3M): 7.12K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.90
• Revenue Growth: 28.54%
• EPS Growth: 19.19%
• Country: IN
• Employees: 10,946
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 25.00
• Shares Outstanding: 31,616,293
• 10 Day Avg. Volume: 6,334
• 30 Day Avg. Volume: 7,123
• PEG Ratio: 0.95
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -52.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹2,205.00 ▼(-5.24% Downside)

Power Mech Projects Ltd. scores a 61, driven by strong financial performance and reasonable valuation. However, technical analysis indicates bearish momentum, which weighs down the overall score. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Sustained high revenue growth (28.5%) indicates durable demand for execution and services. For an EPC/O&M firm, expanding billed work and order wins increase scale, improve vendor terms and absorption of fixed costs, underpinning long-term top-line resilience.

Improving Profitability

Material margin improvement and a 15.1% ROE show stronger cost control and pricing ability on projects. For project-centric businesses, rising margins signal better contract mix and execution, supporting reinvestment capacity and sustained earnings power over multiple quarters.

Healthy Balance Sheet

A conservative leverage profile and ~46.8% equity ratio provide financial flexibility to bid larger contracts and absorb execution timing swings. Moderate debt keeps interest obligations manageable, enabling durable access to credit for working capital and selective capex.

Negative Factors

Negative Free Cash Flow

Negative free cash flow and weak conversion of net income to cash reflect working-capital intensity of EPC contracts and delayed collections. Persistent cash conversion gaps can force reliance on external funding, limiting investment optionality and raising execution risk over ensuing quarters.

Sector & Revenue Concentration

High concentration in power-sector EPC and project-driven revenues exposes the business to sector capex cycles and tender timing. A downturn or slower award cadence in power or large industrial clients can materially compress revenue visibility and margin stability for months.

Operating Efficiency Headroom

Though margins improved, remaining shortfall in EBIT/EBITDA implies operational inefficiencies or higher subcontract/procurement costs. Without productivity gains or margin levers, profitability could be vulnerable to input cost inflation or pricing pressure in future contracts.

Power Mech Projects Ltd. Business Overview & Revenue Model

Company Description

Power Mech Projects Limited provides services in power and infrastructure sectors in India and internationally. The company engages in the erection, testing, and commissioning of boilers, turbines, and generators; balance of plant works for the power sector; provision of integrated industrial construction services; and operation and maintenance, repair, overhauling, renovation, and modernization of power plants and related civil works, as well as undertakes projects in the hydrocarbon, oil and gas, and steel industries. It also undertakes various civil foundation, building, and architectural work projects for power plants and other infrastructure projects; designs and engineers transmission line, sub-station, railways overhead electrification, distribution network, and electrical and instrumentation works; and manufactures components for high capacity pumps, spare parts for hydro and thermal power plant components, components for railway electrification, and facilities and processes, as well as re-blades turbines. In addition, the company constructs sewage and water treatment plants; offers value added technical solutions in electromechanical and hydro-mechanical fields, project management, and deliverable index; and engages in the mine development operations, including excavation of earth and rock, separation of the ore from the waste rock, stacking and handling the waste material, monitoring environmental aspects, and providing supporting services comprising repair shops, labs, residential quarters, warehouses, and offices. Power Mech Projects Limited was incorporated in 1999 and is based in Hyderabad, India.

How the Company Makes Money

Power Mech Projects Ltd. generates revenue primarily through its engineering, procurement, and construction (EPC) contracts in the power and infrastructure sectors. The company engages in large-scale projects where it is compensated for delivering comprehensive solutions, including project management, engineering design, procurement of materials, and construction services. Key revenue streams include contracts for power generation projects, maintenance services for existing plants, and operations management. Additionally, POWERMECH may benefit from partnerships with governmental bodies and private enterprises for infrastructure development, which can provide stable long-term contracts and recurring revenue. The company's strong reputation and expertise allow it to secure new contracts and maintain existing client relationships, further contributing to its earnings.

Power Mech Projects Ltd. Financial Statement Overview

Summary

Power Mech Projects Ltd. has shown strong financial performance with significant revenue growth and improved profitability margins. The balance sheet is solid with healthy equity and manageable leverage. However, cash flow management is a concern due to negative free cash flow, which needs improvement for sustained growth.

Income Statement

Power Mech Projects Ltd. shows strong revenue growth, with a consistent increase in total revenue over the last five years. The gross profit margin has improved significantly, reaching approximately 25.9% in the most recent year. The net profit margin also improved to 6.2%, indicating better cost management and operational efficiency. However, the EBIT and EBITDA margins suggest room for improvement in operating efficiency. Overall, the income statement reflects a robust growth trajectory and enhanced profitability.

Balance Sheet

The company's balance sheet demonstrates strong equity growth, with a healthy equity ratio of approximately 46.8% in the latest year. The debt-to-equity ratio of 0.34 indicates moderate leverage, providing financial stability. Return on equity has improved to 15.1%, showcasing effective use of equity. However, the company should monitor its total liabilities to ensure sustainable growth. Overall, the balance sheet is stable with a good balance between debt and equity.

Cash Flow

Power Mech Projects Ltd.'s cash flow statement indicates challenges in free cash flow, which turned negative in the most recent year. The operating cash flow to net income ratio suggests limited conversion of net income into cash. While the company has managed financing activities effectively, it needs to focus on enhancing cash flow from operations to support growth and investment activities. Overall, the cash flow position requires improvement to ensure liquidity and operational sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	55.20B	52.34B	42.07B	36.01B	27.10B	18.84B
Gross Profit	14.44B	13.54B	12.02B	9.89B	7.43B	3.90B
EBITDA	6.72B	6.04B	4.98B	4.20B	3.03B	572.70M
Net Income	3.19B	3.26B	2.48B	2.09B	1.39B	-456.30M
Balance Sheet
Total Assets	0.00	46.15B	35.68B	30.54B	25.97B	22.61B
Cash, Cash Equivalents and Short-Term Investments	5.93B	5.93B	524.00M	448.60M	759.40M	161.10M
Total Debt	0.00	7.35B	3.96B	4.77B	5.31B	5.15B
Total Liabilities	-21.83B	24.32B	17.28B	17.78B	15.51B	13.52B
Stockholders Equity	21.83B	21.60B	18.38B	12.75B	10.43B	9.05B
Cash Flow
Free Cash Flow	0.00	-1.62B	1.12B	1.29B	1.31B	953.10M
Operating Cash Flow	0.00	2.70M	2.05B	1.82B	1.75B	1.22B
Investing Cash Flow	0.00	-1.93B	-3.73B	-909.89M	-517.60M	-468.00M
Financing Cash Flow	0.00	2.32B	1.76B	-1.20B	-631.50M	-913.10M

Power Mech Projects Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2326.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POWERMECH, the sentiment is Neutral. The current price of 2326.9 is above the 20-day moving average (MA) of 2148.73, above the 50-day MA of 2239.54, and below the 200-day MA of 2749.01, indicating a bearish trend. The MACD of -52.57 indicates Negative momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 77.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:POWERMECH.

Power Mech Projects Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNRCON	74 Outperform	₹43.44B	9.24	―	0.16%	-42.73%	-44.36%
WABAG	69 Neutral	₹74.65B	21.86	―	0.31%	19.23%	22.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
POWERMECH	61 Neutral	₹69.40B	21.24	―	0.05%	28.54%	19.19%
DBL	60 Neutral	₹75.54B	10.37	―	0.21%	-13.57%	40.24%
HGINFRA	60 Neutral	₹43.87B	10.62	―	0.25%	-8.92%	-22.83%
HCC	45 Neutral	₹51.97B	28.41	―	―	-31.50%	-74.38%

Power Mech Projects Ltd. Corporate Events

Power Mech Subsidiary Wins ₹3,126-Crore Battery Storage Project in West Bengal

PM Green Private Limited, a wholly owned subsidiary of Power Mech Projects Limited, has secured a major contract from West Bengal State Electricity Distribution Company Limited to set up a 250 MW / 1,000 MWh standalone Battery Energy Storage System (BESS) at Goaltore in Paschim Medinipur, with an additional greenshoe option for another 250 MW / 1,000 MWh BESS at the Durgapur Project Limited campus in Durgapur. Valued at ₹3,126 crore excluding GST, the domestic Build-Own-Operate project includes design, financing, engineering, procurement, construction, and 15 years of operation and maintenance, backed by a 100% offtake guarantee from the state utility, strengthening Power Mech’s presence in India’s emerging battery storage segment and providing long-term revenue visibility.

Power Mech Wins ₹3,126-Crore Battery Storage Deal From West Bengal Utility

Power Mech Projects’ subsidiary PM Green Private Limited has secured a major contract from West Bengal State Electricity Distribution Company Limited to develop a 250 MW/1,000 MWh Battery Energy Storage System at Goaltore Substation on a Build, Own, Operate model, backed by a 100% offtake guarantee and an 18‑month construction period. The deal, which carries potential revenue of ₹1,563 crore and up to ₹3,126 crore including an additional 250 MW/1,000 MWh greenshoe facility at Durgapur, marks the company’s debut in large-scale energy storage, strengthening its position in India’s renewable and grid-balancing infrastructure and showcasing its ability to execute complex, high-impact projects in the evolving power sector.

Power Mech Projects to Shut Trading Window Ahead of Q3 Results

Power Mech Projects Limited has announced that its trading window for dealing in the company’s securities will be closed from January 1, 2026 until 48 hours after the declaration of its unaudited financial results for the third quarter ended December 31, 2025. The restriction, implemented under SEBI’s Prohibition of Insider Trading Regulations and the company’s internal codes on insider trading and fair disclosure, applies to designated persons, their immediate relatives and all connected persons, underscoring the company’s adherence to regulatory norms and governance standards around unpublished price-sensitive information.

Power Mech Projects Announces Postal Ballot for ESOP and Borrowing Powers

Power Mech Projects Limited has announced a postal ballot for shareholders to approve several special resolutions, including the implementation of an Employee Stock Option Plan (ESOP) for 2026. This plan aims to grant stock options to employees of the company and its subsidiaries, potentially enhancing employee engagement and retention. Additionally, the company seeks approval to increase its borrowing powers and create security. These measures are expected to strengthen Power Mech Projects’ operational capabilities and financial flexibility, potentially impacting its market position and stakeholder interests.

Power Mech Projects Schedules Investor Call for Q2FY26 Results

Power Mech Projects Limited has announced a conference call scheduled for November 13, 2025, to discuss its Q2FY26 performance. The call will feature key management personnel and aims to provide insights into the company’s financial results, potentially impacting investor perceptions and market positioning.