Power Mech Projects Bags ₹549 Crore O&M Order from Adani Group's Moxie Power, a 5-Year Contract
In a notice to NSE and BSE on 29 September 2026, Power Mech Projects Limited said it has received a new order worth ₹549.37 crore. The order comes from Moxie Power Generation Limited, which the filing describes as an Adani Group company. The amount includes all taxes and duties except GST. (Source: Power Mech's NSE/BSE filing, 29 September 2026)
What the Order Is For
This is an Operation & Maintenance (O&M) order. The company will provide complete operation and maintenance services for the Tuticorin Thermal Power Plant (2x600 MW) in Tamil Nadu. The contract runs for 60 months, from 1 October 2026 to 30 September 2031. The order is domestic, and the awarding company is also domestic. (Source: company filing)
How Big the Order Is for the Company
- Against the order book: According to the company's investor presentation, the order book is about ₹17,317 crore (excluding MDO), covering more than two and a half years of revenue. The new order is roughly 3.2% of it.
- Against revenue: According to Screener, the company's revenue is ₹6,392 crore and its profit is ₹420 crore. The ₹549 crore will be spread over five years, or about ₹110 crore a year on average. That is roughly 1.7% of current annual revenue.
- Against market cap: Screener shows a market capitalisation of about ₹7,475 crore, so the order is about 7% of it.
So the order is decent, but it will not transform the company. (Calculation based on figures from the filing, Screener and the company presentation)
Impact on the Order Book
The company has won record orders so far in FY27. According to its investor presentation, order inflows this year to date are ₹3,113 crore, including a ₹970 crore O&M order and an ₹855 crore infrastructure construction order. However, the ₹3,113 crore figure comes from the 28 September investor presentation and probably does not include the new Moxie order. Adding it will push both order inflows and the order book higher. (Source: Power Mech investor presentation)
Likely Impact on Revenue and Profit
The hallmark of O&M contracts is that revenue stays stable and predictable over a long period. Unlike construction work, they do not tie up large amounts of capital. The company has itself said it expects margins to improve further through capital discipline and profitable growth in the O&M and MDO segments. This order should therefore add roughly ₹110 crore a year in direct revenue. The company has not given a precise margin for it, so the effect on profit remains an estimate. (Source: company presentation; analysis is the author's estimate)
Impact on Share Price and Today's Movement
One important point: the company's filing carries a digital signature timed 5:50 pm on 29 September, meaning the news came after the market closed. Its effect on the stock will therefore show in the 30 September session.
Today's (29 September) rise came from a different piece of news. The company had announced an order worth ₹279.20 crore from Telangana Power Generation Corporation, after which the shares rose about 3% on NSE to a day's high of ₹2,441. Before that, the stock closed at ₹2,407.30 on 25 September. Its 52-week range is ₹1,718 to ₹3,008, so the share is well below its high.
Prospects for Further Orders
The company keeps winning orders, whether the Vedanta O&M order, the Telangana order or now one from an Adani Group company. Demand for thermal power remains, and outsourcing of O&M at existing plants is growing, which is the company's core area. The company claims its revenue has grown about 3.2 times in five years. The prospects for more orders therefore look good, though that is not a guarantee.
What Investors Should Watch
- Market reaction on 30 September: volumes and price movement after the news.
- Margins: how much margin the O&M business will earn may become clearer on the next quarter's conference call.
- Execution: work is due to start on 1 October 2026, so a timely start matters.
- Customer risk: the order is tied to a single group, so timeliness of payments needs watching.
- Contingent liabilities: according to Screener these are ₹2,814 crore, which needs monitoring.
- Valuation: according to Screener the stock's P/E is about 19.4, which may change after the order news.
- Promoter holding: promoter stake has fallen by about 5.7% over the last three years and is now 58.4%.
Source
- Power Mech Projects Ltd's filing to NSE (POWERMECH) and BSE (539302), subject "Receipt of order", dated 29 September 2026, signed by M. Raghavendra Prasad, Company Secretary
According to the filing, the promoter or group companies have no interest in the awarding company, and this is not a related party transaction.
Disclaimer: This article is for information only and is not investment advice. Consult your financial advisor before investing.
