Adani Group Stock Jumps After Securing ₹266 Cr O&M Contract

Synopsis: A Hyderabad-based power infrastructure company wins a ₹266 crore operations and maintenance contract from a major conglomerate, adding to a strong order book that already exceeds ₹15,800 crore.

A domestic power infrastructure firm has secured a significant operations and maintenance contract from the Adani Group, strengthening its already robust revenue pipeline. The development comes on the back of a strong FY26 performance, with the company reporting double-digit growth in both revenue and profit for the full year.

Shares of Power Mech Projects Limited, with a market capitalization of Rs. 7,943 crore, are trading at a price of Rs.2,515 i.e. 1.06% up from its previous closing price of Rs.2,488.5. It is trading at a P/E ratio of 18.99. 

Adani Group Awards O&M Contract

Power Mech Projects Limited has received a contract from Adani Infrastructure Management Services Limited, a part of the Adani Group, for providing KPI-based operations and maintenance (O&M) services at a 2x300MW thermal power plant located in Butibori, Maharashtra. The contract is valued at ₹266.26 crore, exclusive of GST, and is to be executed over 60 months – from July 1, 2026, to June 30, 2031. The order was disclosed to stock exchanges on June 3, 2026. The company confirmed that neither the promoter group nor any group company has any interest in the awarding entity, and the contract does not fall under related party transactions.

Strong Order Book Provides Revenue Visibility

The latest contract adds to what is already a well-stocked order pipeline. As of FY26, Power Mech’s order book (excluding MDO orders) stood at ₹15,899 crore, providing over two years of revenue visibility. During FY26, the company recorded total new order inflows of ₹7,210 crore. This included ₹1,270 crore in Q1, ₹1,042 crore in Q2, ₹2,861 crore in Q3, and ₹2,037 crore in Q4, with marquee wins from clients such as BHEL, Adani, and SJVN.

FY26 Financials Show Steady Growth

On the financial front, Power Mech reported consolidated revenue from operations of ₹6,061.57 crore in FY26, up 16% year-on-year from ₹5,234.14 crore in FY25. EBITDA for the year came in at ₹750.29 crore, a 16% increase over ₹649.16 crore in the previous year, while EBITDA margin remained nearly flat at 12.29%. Profit after tax (before minority interest) stood at ₹411.68 crore, up 18% year-on-year. PAT attributable to shareholders after non-controlling interest was ₹363.99 crore, up 11% from ₹326.48 crore in FY25.

About the Company

Power Mech Projects Limited is a Hyderabad-based infrastructure services company specialising in erection, testing, commissioning, and operations and maintenance of power plants and industrial facilities. Listed on both BSE and NSE, the company serves clients across the power, oil and gas, and metals sectors, with a growing presence in mine development and operation (MDO) projects.

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