Power Mech Projects Ltd shares jumped over 5% on Tuesday, March 17, following the announcement of a significant contract win from Adani Infrastructure Management Services Ltd. The stock surge reflects positive market sentiment toward the company's substantial new business acquisition. According to LiveMint, the contract encompasses operations and maintenance (O&M) services, including overhauls, for the 5×660 MW thermal power plant in Tiroda, Maharashtra. The agreement will be executed under a KPI-based contract structure and will be awarded by a domestic entity.
The project will be executed over a 60-month period, from April 1, 2026 to March 31, 2031. Under the agreement, Power Mech will undertake comprehensive O&M services and overhaul support for the thermal power units, in line with the tender documents and related clarifications. The total contract value stands at ₹709.56 crore, excluding goods and services tax (GST). According to the contract, Power Mech will provide extensive operation and maintenance services along with overhaul assistance for the thermal power units, adhering to the tender specifications and accompanying clarifications.
According to reports from CNBC TV18, Power Mech reported a 14.6% year-on-year rise in net profit to ₹94 crore in Q3, compared with ₹82 crore in the corresponding quarter last year. Revenue from operations increased 6.1% to ₹1,419 crore, up from ₹1,338 crore a year earlier. However, the company's operating performance weakened during the quarter, with EBITDA declining 20.7% to ₹159.3 crore, compared with ₹201 crore in the year-ago period, while the EBITDA margin contracted sharply to 11.2% from 15%.
As reported by LiveMint, the stock surge of over 5% on Tuesday, March 17, demonstrates strong market confidence in the contract win. The positive market response indicates investor optimism about the company's ability to execute this substantial thermal power project and its potential impact on future revenue streams. The contract award from Adani Infrastructure Management Services Ltd represents a significant business development for Power Mech Projects Ltd in the thermal power maintenance sector.
