Power Mech Projects Limited

S. Kodandaramaiah

DIRECTOR (NON-BOARD) BUSINESS DEVELOPMENT, POWER MECH PROJECTS LIMITED

N. Nani Aravind

CHIEF FINANCIAL OFFICER, POWER PROJECTS LIMITED

Rahul Kundnani

NIRMAL BANG INSTITUTIONAL EQUITIES

S. K. Ramaiah

Director of Business Development. I would like to extend a warm welcome to all of you

INR 1,433 crore

to the positive momentum. For Quarter 3 Financial Year '26, the Company recorded total revenue of INR 1,433 crore, reflecting 6% growth compared to the INR 1,347 crore in Q3 FY '25. This increase was driven by s

6%

or Quarter 3 Financial Year '26, the Company recorded total revenue of INR 1,433 crore, reflecting 6% growth compared to the INR 1,347 crore in Q3 FY '25. This increase was driven by sustained executi

INR 1,347 crore

r '26, the Company recorded total revenue of INR 1,433 crore, reflecting 6% growth compared to the INR 1,347 crore in Q3 FY '25. This increase was driven by sustained execution across power, O&M, and emerging segm

INR 173 crore

orted by new order inflows and strong execution of ongoing contracts. EBITDA for the quarter was INR 173 crore, up 8% year-on-year, with EBITDA margins at 12.08%. The margin remains stable compared to the prev

8%

inflows and strong execution of ongoing contracts. EBITDA for the quarter was INR 173 crore, up 8% year-on-year, with EBITDA margins at 12.08%. The margin remains stable compared to the previous qu

12.08%

contracts. EBITDA for the quarter was INR 173 crore, up 8% year-on-year, with EBITDA margins at 12.08%. The margin remains stable compared to the previous quarter, with a slight dip due to provisions c

INR 100 crore

nderlying operational performance, however, remains strong. Profit after tax for the quarter was INR 100 crore, marking a 15% increase from INR 87 crore in Quarter 3 FY '25, with PAT margins improving to 7.02%

15%

rformance, however, remains strong. Profit after tax for the quarter was INR 100 crore, marking a 15% increase from INR 87 crore in Quarter 3 FY '25, with PAT margins improving to 7.02% from 6.47% in

INR 87 crore

, remains strong. Profit after tax for the quarter was INR 100 crore, marking a 15% increase from INR 87 crore in Quarter 3 FY '25, with PAT margins improving to 7.02% from 6.47% in Quarter 3 FY '25. For the

7.02%

crore, marking a 15% increase from INR 87 crore in Quarter 3 FY '25, with PAT margins improving to 7.02% from 6.47% in Quarter 3 FY '25. For the nine months ended December '25, the Company achieved a to

6.47%

ing a 15% increase from INR 87 crore in Quarter 3 FY '25, with PAT margins improving to 7.02% from 6.47% in Quarter 3 FY '25. For the nine months ended December '25, the Company achieved a total revenue

INR 3,987 crore

Quarter 3 FY '25. For the nine months ended December '25, the Company achieved a total revenue of INR 3,987 crore, reflecting 17% increase compared to INR 3,409 crore in the same period last year. The strong nine

“Now, I will hand over to the management for their opening remarks, which will be followed by the Q&A.”

“A key award includes a large BOP EPC package for the 800 megawatt Singareni thermal project from BHEL, which expands our scope from execution packages to integrated EPC delivery and BOP systems.”

“We also received a grid-scale battery energy storage system project under build-own-operate model from State Utility, which marks our entry into the utility scale storage assets with a long- term contracted revenue structure.”

“With a solid pipeline of orders and ongoing project execution, we are confident in achieving our full year targets and driving long-term value for our stakeholders.”

“Now, for this year's overall target of INR 10,000 crore, what we discussed with the team, the investor team, and what we have got opportunities around the INR 5,162 crore, mainly driven by Adani, they are investing continuously, and they are taking the decisions in ordering.”

“In fact, energy storage is going to drive the business substantially, with the first breakthrough of what we received for a 250-Megawatt Battery energy storage project in West Bengal.”

“The energy storage, both in the Battery storage and then the Pumped storage, is required to balance the power grid stability, and we will be contributing a little way, our contribution to this need.”

“This project involves with a 1,000 Megawatt-hour output, and an expected revenue of nearly INR 103 crore per year, over 15 years, that will give an overall revenue of INR 1,563 crore.”

“This one, the short duration project, of18 months, and infrastructure is available near to a Substation, land is not a problem.”

“There is a proper contract with West Bengal Power Development Corporation, and then the agreement is in place, and we have to now get going on this project.”

N. Nani Aravind

35

Moderator

12

Mohit Kumar

7

Devang Shah

6

Vedant Kabra

6

Amar Ahir

5

Pritesh

3

Bhagwat

3

Mudit Bhandari

2

MODERATOR

1

Rahul Kundnani

Thank you, Iqra. Good morning. On behalf of Nirmal Bang Institutional Equities, I welcome you all to the 3Q FY '26 Earnings Call of Power Mech. The management is represented by Mr. S. Kodandaramaiah – Director, Non-Board and Mr. N. Nani Arvind – CFO. Now, I will hand over to the management for their opening remarks, which will be followed by the Q&A.

N. Nani Aravind

Good morning, everyone. I am Aravind, CFO of the company. I have with me Mr. S. K. Ramaiah – Director of Business Development. I would like to extend a warm welcome to all of you joining us the Quarter 3 and 9 months Financial Year '26 Earnings Call today. I take this opportunity to welcome you all to our Q3 FY '26 Earnings Call. As we reflect on our performance during the 3rd Quarter of FY '26, I am pleased to report that the company has continued to execute on its growth plans with strong results across all key segments. This quarter has demonstrated the consistency and scalability of our business model, with our core segments contributing to the positive momentum. For Quarter 3 Financial Year '26, the Company recorded total revenue of INR 1,433 crore, reflecting 6% growth compared to the INR 1,347 crore in Q3 FY '25. This increase was driven by sustained execution across power, O&M, and emerging segments such as mining and civil works. The O&M business, in particular, performed well

N. Nani Aravind

Thank you. We will now begin the question-and-answer session. The first question is from the line of Pritesh from Lucky Investments. Please go ahead. Pritesh, you can go ahead. Sir, just a couple of questions. One, on this INR 17,000 crore of backlog, you always have a fairly strong backlog and additional orders. How much of this INR 17,000 crore is where the execution is slow? And what are the challenges there? And if you look at your execution for the first 9 months vis-à-vis the accretion in backlog, the execution is slightly weaker. So, maybe you want to call out some comments on these two areas, please. Yes, out of the INR 17,000 crore of order, we are not facing execution challenges. However, some of the new orders we received during the last year, experienced delays in commencement of the project because of the extended monsoons during Q2 and Q3. And some of the projects like Kaiga and Yadadri, where extended monsoons, and Mirzapur is one project where environmental clearance is

N. Nani Aravind

Sir, we have removed nonmoving FGD order during last financial year itself for INR 4,260 crore. INR 17,000 order backlog is without FGD order. Only INR 936 crore of Udupi project only running in the FGD.

Pritesh

And on the new areas that you have taken, that is Balance of Plant order or a BESS order, or all the new areas now, here, what is the margin profile? And have you compromised any margins?

N. Nani Aravind

Sir, the BOP EPC is new line where we were planning to enter into to scale up our operations to expand our scope of execution from under construction activity to the EPC delivery in BOP system. In BESS, actually, we, Power Mech has been in the forefront for India's energy growth story, and we do not want to miss the energy transition phase as well. So, we have incorporated a 100% subsidiary as a PM Green for this, and this is a small attempt we to see where the renewable segment fits into the Power Mech's vision of sustained growth and margins. We are cautiously optimistic about this segment. So, investment of around 16% to 18% IRR we are anticipating on these projects on equity investments. S. Kodandaramaiah: Ramaiah here. Regarding Singareni, I think what we have to also look into is the synergy the company brings about in the execution on a backward integration basis. As I said, we have strengthened with a very strong engineering team, and project management team with focused supply