Power Mech Projects Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Power Mech Projects Ltd trades at ₹2,421, in a confirmed uptrend and 14 weeks into that stage. That is −2.6% against its own 200-day average. It sits at 59% of a 52-week range of ₹1,823 to ₹2,843. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (7 weeks and counting).

Today the stock is in a confirmed uptrend — week 14 of stage 2. At ₹2,421 it trades −2.6% versus its 200-day average and sits at 59% of its 52-week range (₹1,823–₹2,843).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +739% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (7 weeks and counting; last ahead the week of 2026-07-24) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Power Mech Projects Ltd's story is not scored yet against the markers our research file set on 27 June 2026. Where it sits in its own cycle: Not stated in the research file. Our fortnightly research layers last read it on 27 June 2026.

Our read, 27 June 2026. Strategic pivot to BOP EPC and MDO operations drives the next leg of growth, despite near-term headwinds from water division receivables.

From the numbers. PE is slightly above the median, reflecting the market pricing in the upcoming margin expansion from the MDO business. Normalized cycle verdict is FAIRLY_PRICED.

From the price. Price stage 2, week 14 — below its 200-day line, relative strength rising.

From the research. Strategic pivot to BOP EPC and MDO operations drives the next leg of growth, despite near-term headwinds from water division receivables.

🚨 Where they disagree. PE is slightly above the median, reflecting the market pricing in the upcoming margin expansion from the MDO business. Normalized cycle verdict is FAIRLY_PRICED.

What is proven. Strategic pivot to BOP EPC and MDO operations drives the next leg of growth, despite near-term headwinds from water division receivables.

What is not proven yet. A failure to secure the targeted order inflows, particularly any loss of momentum in securing new BOP EPC contracts, or further delays in the Parsa mine washery commissioning.

🚨 What would change our mind. A failure to secure the targeted order inflows, particularly any loss of momentum in securing new BOP EPC contracts, or further delays in the Parsa mine washery commissioning.

Layer 1 read, 27 June 2026 — KEEP. Record earnings (EPS 45 vs 17) with a compressing multiple at a FAIR PE 24 — real inflection, not re-rating. Power Mech's quarterly engine is at a record: revenue grew 865 to 2,111 crore and EPS 17.11 to 45.09 across 12 quarters while the multiple compressed -40.9% over 8 quarters as EPS rose +48.2% — the multiple is falling against a rising engine, the opposite of a re-rating trap. The check on conviction is delivery: FY26 revenue missed guidance by 6.7% and order inflow by 28%, and FY28 MDO guidance was cut ~30%, so the mix-upgrade story is real but the timeline keeps slipping.

What would change Layer 1’s mind. If FY27 order inflows land below 9,000 crore for a second consecutive year, or MDO FY27 revenue prints below 350 crore, the mix-upgrade engine stalls and the FAIR multiple has no growth to compress against — the P1 flips to DROP.

Layer 2 read, 27 June 2026 — BENCH. Cash now backs earnings and FIIs are adding, but price is extended in a topping sector with repeated guidance cuts. Power Mech's FY26 profit of 412 crore is finally cash-backed: operating cash flow recovered from just 1 crore in FY25 to 430 crore in FY26, which rebuts the sector's 'cash trapped in receivables' charge for this specific name, and FIIs actually raised their stake to 6.48%. But the stock is extended — its 10-year valuation multiple sits at the 72nd percentile after a 6.6x price run — inside a sector the tri-stream rates DIVERGENT/TOPPING with collapsing new project announcements, and management has already cut its FY28 MDO target 30%. That mix says hold for execution proof, not deploy.

What would change Layer 2’s mind. Sharpening L1's own falsifier: if H1 FY27 OCF relapses (operating cash flow falling materially below PAT again, signaling receivables re-clogging) OR FY27 order inflow lands below 9,000 crore for a second consecutive year / MDO FY27 revenue prints below 350 crore, the execution thesis breaks and this flips ADVANCE-eligible->DROP. Conversely a clean OCF>PAT print plus order-inflow recovery would flip BENCH->ADVANCE.

The test written in advance. A failure to secure the targeted order inflows, particularly any loss of momentum in securing new BOP EPC contracts, or further delays in the Parsa mine washery commissioning. — the thesis as written as stated by the next result.

What the company does. Power Mech is transitioning from a traditional mechanical EPC contractor to a higher-margin, asset-backed MDO operator and BOP EPC provider. The legacy water division challenges are being actively de-emphasized. A robust pipeline of order inflow targets provides clear revenue visibility.

🚨 What the surface reading misses. The surface reading is: Fairly priced relative to median. The research reads it further: Earnings are ramping as MDO scales, making the multiple look reasonable.

Sources: our stock research file (27 June 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Power Mech Projects Ltd reported ₹1,624 Cr of revenue in the Jun 26 quarter, +25.6% year on year. That is the 11th straight quarter of year-on-year growth. Over 10 years it has compounded at 16.0% a year. The last full year, FY26, came in at ₹6,062 Cr. The last four reported quarters add to ₹6,393 Cr.

FY26 revenue came in at ₹6,062 Cr (+15.8% on the year), capping 10 years at 16.0% compound. The latest quarter (Jun 26) printed ₹1,624 Cr, +25.6% year on year — the 11th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +16.3% growth against the decade's 16.0% — the current year is running in line with its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +15.8% over the last 4 quarters against +21.2%/yr over the last 8 — rolling over; TTM profit +14.1% vs +27.3%/yr — rolling over.

FY26-Q4. revenue ₹2,111 Cr and profit ₹153 Cr as reported.

FY27-Q1. revenue ₹1,624 Cr and profit ₹89 Cr as reported.

Why-sources: our stock research file (27 June 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Power Mech Projects Ltd's operating margin is 10.0% in the Jun 26 quarter, −3.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 2.1% to 13.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 10.0%, −3.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 2.1%–13.0%.

🚨 Why the margin moved: operating margin went −2.8 pp year on year while gross margin went −4.2 pp — the loss came mostly from the gross line: input costs and pricing.

FY26-Q4. revenue ₹2,111 Cr and profit ₹153 Cr as reported.

FY27-Q1. revenue ₹1,624 Cr and profit ₹89 Cr as reported.

Why-sources: our stock research file (27 June 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Power Mech Projects Ltd earned ₹89.0 Cr of net profit in the Jun 26 quarter, +9.9% year on year. It is the 11th consecutive quarter of growth. Full-year FY26 profit was ₹412 Cr. The 10-year compound rate is 18.6%. That is 5.5% of the quarter's revenue. The same quarter a year earlier earned ₹81.0 Cr.

Jun 26 profit was ₹89.0 Cr, +9.9% year on year — the 11th consecutive quarter of growth. On the full year, FY26 printed ₹412 Cr (+18.4%), and the 10-year compound rate is 18.6%.

Why profit moved: revenue contributed +25.6% and the margin −3.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +13.5% vs revenue +16.3%. Profit and revenue are moving roughly in step.

FY26-Q4. revenue ₹2,111 Cr and profit ₹153 Cr as reported.

FY27-Q1. revenue ₹1,624 Cr and profit ₹89 Cr as reported.

Why-sources: our stock research file (27 June 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 59% of Power Mech Projects Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹387 Cr of operating cash against ₹412 Cr of profit. After ₹335 Cr of capital spending, ₹52.0 Cr was left as free cash.

FY26: operating cash of ₹387 Cr against reported profit of ₹412 Cr, leaving free cash of ₹52.0 Cr after ₹335 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 59% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 59%: the cash cycle tightened 392 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 3.4× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Power Mech Projects Ltd's cash conversion cycle runs −289 days in FY26, down from 103 days in FY21. Capital spending ran ₹594 Cr over the last 3 years. At FY26 sales of ₹6,062 Cr each day of that cycle holds about ₹16.6 Cr, so roughly ₹−4,800 Cr sits inside the business at any moment.

Why this happened. Entry into full BOP EPC with the Singareni project and expansion of O&M services into metro rail open new multi-year revenue streams with better margins.

FY26: debtors at 93 days, inventory at 111 days — roughly 3.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −289 days, tighter than FY21's 103.

The full loop: cash goes out to suppliers and production on day 0; stock waits 111 days to sell; customers pay about 93 days after that; and suppliers themselves are paid at 493 days — netting out to the −289-day cycle.

In money terms: at FY26 sales of ₹6,062 Cr, each day of the cycle holds about ₹16.6 Cr — so the −289-day loop keeps roughly ₹−4,800 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹594 Cr over the last 3 fiscal years against ₹175 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹182 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Power Mech Projects Ltd earns a ROCE of 22% in FY26. That is up from a trough of 1% in FY21. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 6.8% net margin on 1.08× asset turns.

FY26 ROCE is 22%, recovered from a FY21 trough of 1% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 6.8% net margin × 1.08× asset turns × 2.22× balance-sheet leverage ≈ 16.3% on equity. Margin does its share; leverage is a meaningful part of the equation.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 35% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Power Mech Projects Ltd carries ₹664 Cr of borrowings against ₹2,519 Cr of equity in FY26, a debt-to-equity of 0.26. Operating profit covers the interest bill 6×. Over 5 years borrowings went from ₹515 Cr to ₹664 Cr. Capital spending ran ₹594 Cr across the last 3 of those years.

FY26: borrowings of ₹664 Cr against equity of ₹2,519 Cr — a debt-to-equity of 0.26. Operating profit covers the interest bill 6×. Over 5 years borrowings went from ₹515 Cr to ₹664 Cr while capital spending ran ₹594 Cr in just the last 3 — part of the build-out is riding on borrowed money.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 35% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 1.3 points of Power Mech Projects Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 6.5% of the company. Domestic institutions moved −1.0 points over the same window, to 20.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +1.3 points over 8 quarters to 6.5%; Domestic institutions: −1.0 points over 8 quarters to 20.6%; Promoters: +0.1 points over 8 quarters to 58.4%.

Why the register moved: foreign institutions drove it (+1.3 points), absorbed on the other side by domestic institutions (−1.0 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Power Mech Projects Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Power Mech Projects Ltd trades at 19.6× P/E, mid-range by its own standards (60th percentile). Its long-run median P/E is 16.8×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 19.6× is mid-range by its own standards (60th percentile), against a long-run median of 16.8× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +11.5% against a −21.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +42.2%/yr price move, ~+81.5%/yr came from earnings growth and ~−39.3 pp from the multiple (compressing); over 10y, of the +26.3%/yr price move, ~+15.9%/yr came from earnings growth and ~+10.4 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio and its quarterly curve, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 35% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 28 June 2026 price, Power Mech Projects Ltd was paying for profit growth of about 11.6% a year. Profit itself has compounded 18.6% a year over the past 10 years. Today the market pays 19.6× P/E, the 60th percentile of its own 11-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 28 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Power Mech Projects Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +40.7% at its peak to +14.1% but is still expanding, ROCE holding at 22.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

56.1/100 — rank 1 of 3 in Project Consultancy/Turnkey · 79% evidence confidence

Power Mech Projects Ltd scores 56.1 out of 100 against the 3 companies it is compared with in Project Consultancy/Turnkey, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 15.5 + 19.2 + 8.9 + 12.5 = 56.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Power Mech Projects Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

International Conflict Impact Narrative Shift · 10 August 2026. In May 2026, management said the Middle East conflict had no impact on international operations because the business was primarily O&M. In August 2026, management said the international focus was affected by Middle East conditions and attributed lower margins to higher material and execution costs from the conflict, without clearly reconciling the changed assessment.

O&M Margin Assumption Increased Without Explanation · 10 August 2026. Management previously indicated that O&M margins were approximately 15%-16%, but the August 2026 call cited 18%-20%. This is a meaningful upward change to the margin assumption used in assessing the quality and profitability of the O&M growth strategy, and no specific explanation was provided for the increase.

FY28 MDO Revenue Outlook Reduced Further · 10 August 2026. In February 2026, management projected FY28 MDO revenue of INR 1,800-1,900 crore. By May 2026, the stated component outlook implied approximately INR 1,250 crore, while the August 2026 call records only INR 1,100-1,200 crore for FY28, representing a further reduction from the immediately prior outlook without a new explanation.

MDO Segment FY28 Revenue Guidance Cut · 22 May 2026. In the Feb 2026 call, management estimated that the mine developer and operator segment would achieve approximately 1,800 to 1,900 crores in revenue for FY28. However, in the May 2026 call, they revised this guidance down to 1,250 crores for FY28, citing third-party infrastructure delays and ramping hurdles.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions