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Power Mech Projects is a 20 years years old leading infrastructure-construction Company  based in Hyderabad, India with global presence and highly credited in providing spectrum of services in power and infrastructure sectors. The company is an integrated infrastructure services provider of comprehensive erection, testing and commissioning of boilers, turbines and generators (ETC-BTG), balance of plant (BOP) works, civil works and operation and maintenance (O&M) services.

Established in the year 1999 by an  enthusiastic  engineering  entrepreneur S.Kishore Babu with chosen motto of providing service with high quality, safety and time line, the company still holds all the three virtues in high esteem. The company during the two decades of existence has undertaken projects of all types, sizes and under extreme environments in India and abroad which include Ultra Mega Power Projects, Super Critical Thermal Power Projects, Sub Critical Power Projects, Heat Recovery Steam Generators, Waste Heat Recovery Steam Generators, Circulating Fluidized Bed Combustion Steam Generators, Gas Turbine Generators, Hydro Electric Projects, Operation & Maintenance of running plants and entire civil works for power plants.

Over the years, the company has undertaken diversified jobs and work profiles and has established itself as a strong EPC (Engineering, Procurement and Construction) company. 

The company has emphatically established a niche in power generation covering almost every segment including Erection, Testing and Commissioning of BTG and BOPs, Operation and Maintenance, Repairs, Overhauling, Renovation and Modernization of power plants and related civil works. Power Mech, having its major operations in India, also extended its operations globally and has presence in more than ten countries worldwide.

In Industrial construction side, the company caters to Power Projects (Ultra Mega, Super Critical, Sub Critical & Combined Cycle Power Projects), Nuclear, Refinery & Petro Chemicals, Steel Plant, Oil Pipe Line & Cement.

With 15,000 direct and 25,000 indirect work force and huge fleet of cranes and machines, it is capable of handling and executing over 4,00,000 MT annually while operating up to 55 sites simultaneously.

The company has established subsidiary companies for focussing on different types of executions: Hydro Magus Private Limited for undertaking hydro projects, Power Mech Industri Private limited with a workshop in Noida, for fabrication, manufacturing and repairing of BTG parts, MAS Power Mech Arabia in Saudi Arabia, to extend the company’s services in this part of the world and joint venture GTA Power Mech Nigeria Limited for undertaking project works in the African region.

Key Areas-:

Global Presence-:

The company is growing presence in export operations in Middle East. 

It is expanding Geographical reach into Nigeria, Kazakisthan, Bahrain, Oman, Kuwait, Bangladesh.

The company is also Expanding into Refineries, Petro Chemicals, Desalination Plants .

With Initial foot print in O&M company is diversifying among other sectors. 

The company has also Capacity ramped up capacity from 299 GW to 493GW which by 2035 will throw up immense opportunities.

In Oil & Gas sector, PMP has strong execution presence by executing projects at Jamnagar Refinery J3 expansion from RIL, Paradeep Refinery & MRPL from BHEL, OPAL promoted by ONGC & also RIL’s Petrochemical Complex at Dahej.

Order Book/Future Outlook-:

As on Feb 19, the company has an order book of Rs 6700 crore, highest ever order book in the history of the company. 

Since past several years, the order book of the company always used to hover around Rs 3800-4000 crore. Thus this significant jump in order book provides a very strong visibility in earnings for next 2-3 years. 

Of the total order backlog Power would constitute around 55% of the order book and rest is form non power segment. Within Power, around Rs 2400 crore is mechanical and erection segment, Rs 1000 crore from O&M segment and around Rs 200 crore from electrical work. The order book from Power which remained at around 80% couple of years back has reached to around 55% and non power segment having better margins and working capital cycle continues to grow in the total order book of the company. 

Exports orders account for around Rs 1150 crore in the total order book. 

Of the total order book, erection work will be around 35% of total order book, O&M will be around 17%, 7% will be electrical and rest 41% will be civil work including structures. 

Irrigation, petrochemical, refinery, rail structures, pipelines, electrification etc are some of non power segment driving order book. Focus continues to remain on Non Power and mechanical side. 

Segment wise Breakup of order book.

The order book also includes Sarva Sikhsha Abhiyan project which is a Rs 1300 crore of orders for building schools and other infrastructure from AP government. The project is funded by Central Government and will be completed in 22 months. Being an AP company, the government wanted a local company to undertake the prestigious contract. The terms of payment are very lucrative. 40% is given as upfront support from Central Government backed by Nabard, 10% as advance at 6.5% interest and rest the company has to manage. PMP has kept an internal margin of around 25-30% in this project. So funding requirements and margins are very much in control of the company. 

Both at power and non power levels, total bidding opportunity of around Rs 24000 crore exists in FY 20. The company is well qualified to bid in all the upcoming opportunities which will further enhance the order book visibility and thus revenue visibility going forward.


Further more substantial growth is expected, installed base of 252 M MT enhance to 320M MT by 2030-31 by way of brown field & green filed refineries, augmenting the capacities whereby taking Annul investments in the range of Rs 600 Billion to Rs 800 Billion.

The construction scope of the business is expected to be in the range of Rs 30 – Rs 40 Billion per year 

The company has also recently Forayed into Cross Country Pipe Lines .

In Steel sector PMP has already forayed into this segment with carrying out works for 3 MT expansion works at Nagarnar, Blast Furnace area of site structural & equipment installation for Angul plant of JSPL.




Power Mech Projects (PMP) posted 2QFY20 consolidated revenue of Rs530crore, O&M segment posted healthy growth (up 22% YoY), ETC segment was flattish (up 4% YoY) while civil segment sales fell 30% YoY.

International projects formed 16% of total sales while non-power sector accounted for 30% of total sales .

EBITDA was flat YoY to Rs68.9 crore, leading to a margin of 12.9% while PAT was up 24% YoY at Rs35.1 crore.

Company’s net debt stands at Rs 380 crore up almost 25% from the previous year.

Company does have cash and equivalents of Rs 88 crore while the investments have increased by about Rs 31 crore.

Compound sales growth over 3 and 5 year period stands at 14% and 18% respectively while compounded profit growth rate over the same period stands at 12% and 17% respectively.

Shareholding Pattern-:

Promoters hold around 62.5% of shares while Mutual funds hold around 11.02% shares which include notable scheme such as HDFC SMALLCAP FUND which holds 6.68% shares.

Apart from that company has very small equity share capital of 1,47,10,764 fully paid equity shares of Rs 10 each.

Additional Notes-:

Work profile in Industrial Construction -:

  • Erection, 
  • Testing & Commissioning of BTG & BOP, 
  • Steam Generators & Auxiliaries , 
  • Steam Turbine Generators & TG Auxiliaries, 
  • Critical Piping, 
  • LP & HP Piping, 
  • Structural Steel, 
  • Coal Handling Plant, 
  • Ash Handling, 
  • Cooling Water System, 
  • Fuel Oil System and ESP, 
  • Ducts, FGD & SCR etc. 

Industrial Services (O&M) side the work profile includes 

  • Overhauling and Maintenance of Boiler, Turbine & Auxiliaries 
  • R&M of BTG, GTG 
  • Repair, Modification and Rehabilitation of Boiler 
  • Revival and Life Extension, etc 
  • Coal Handling Plant 
  • BOP packages 
  • Trouble Shooting 
  • Upgrade & Retrofits 
  • Rebuilds & Plant Relocation 
  • Infrastructure Construction (Civil) side for Power Plants, Railway, Industrial.

Projects etc, the work profile includes: 

  • Foundation, Decks, Plant Buildings, Chimney & Cooling Towers 
  • Geothermal Soil Exploration 
  • Mass Excavation, Area Grading & Land Development 
  • Bored Cast & Driven Cast Piping 
  • Water & Canal Works 
  • Permanent Way – EWE 
  • Permanent Way Linking Works 
  • Track Linking 
  • Minor & Major Bridges 
  • Industrial Buildings

In Electricals side the work profile includes: 

  • Extra High Voltage Substation Works 
  • Construction of 33/11 Kv Substations 
  • Strengthening of existing Substations 
  • Construction of 33 Kv & 11 Kv Lines 
  • Construction of Transmission of Lines 
  • Optical Fiber Networks 
  • OHE, S&T 

Hydro Power & Water segment the work profile includes 

  • Supply & construction of Hydro power plants 
  • Renovation & modernization 
  • AMC & O&M, after sales services, spares management, RLA Study, LTSA 
  • Trouble shooting of chronic problems by providing value added technical solutions in Electromechanical and Hydro-mechanical fields 
  • EPC of mini hydro projects 
  • Sewage treatment plant(STP’s) 

On manufacturing side the activities include 

  • Fabrication of Heavy Structures, Large & High Pressure Tanks, Heavy Trusses, Ducts, Pipes etc 
  • Repair of Steam & Hydro Turbines 
  • Tie-up with Major OEM Companies for authorized production of critical & general spares, etc 
  • Reverse Engineering of spares

International Operations the work profile includes 

  • Erection, Testing & Commissioning of Oil Fired Boiler, HRSG, Reserve/Auxiliary Boiler & BOP 
  • Steam Turbine Generators & Auxiliaries, Gas Turbine Generators & Auxiliaries 
  • Combined Cycle Power Piping, LP & HP Piping, High Pressure Piping, Structural Steel, Plant, Cooling Water System, Fuel Oil System 
  • ESP, Ducts, & SCR, Rotating Equipment‘s 
  • Desalination Plants 
  • Civil Works

Power mech Projects has been suggested twice in darkhorsestocks with first suggested in 2017 at the price of 590Rs since then the stock has delivered 82% returns before falling to the current levels.



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