Power Mech O&M Contract Win; Shares Rise 9.21% On ₹296 Crore Deal

Mumbai, April 10: Power Mech Projects Limited said it has secured an operations and maintenance contract worth ₹296 crore for the Mumbai Monorail project from Maha Mumbai Metro Operation Corporation Limited.

The contract covers a 19.54 km corridor stretching from Sant Gadge Maharaj Chowk to Chembur, including 17 stations. The agreement is structured as a five-year operations and maintenance mandate, marking the company’s entry into the urban mobility segment, according to a company release.

Under the contract, Power Mech will undertake end-to-end O&M responsibilities. This includes operation of rolling stock and management of upgraded communication-based train control systems. The company said the mandate expands its presence beyond core power and infrastructure services into rail-based urban transport systems.

Stock Market Snapshot

Power Mech Projects share price moved higher following the announcement, as investors responded to both the order size and its strategic positioning.

The stock traded at ₹2,269.30, up ₹191.30 or 9.21% as of 3:30 pm IST on April 10, 2026, according to exchange data. The gains were sustained through the latter half of the session, indicating continued buying support.

Market participants appear to be factoring in the diversification benefit. Entry into long-duration O&M contracts in urban transit may provide more stable revenue streams compared to project-based engineering contracts.

Core Business And Expansion Strategy

Power Mech Projects Limited has traditionally operated in the power and infrastructure EPC space, with a strong presence in erection, testing and commissioning services.

The company has been gradually expanding into operations and maintenance services, particularly in power plants. This latest contract signals a broader strategic shift towards asset lifecycle management across sectors, including transport infrastructure.

With urban transit systems scaling up across Indian cities, O&M contracts are emerging as a specialised segment requiring technical depth and execution discipline.

Contract Adds Stability To Revenue Mix

The ₹296 crore order provides medium-term revenue visibility over a five-year horizon, unlike typical EPC contracts which are milestone-based and shorter in duration.

While execution quality and service reliability will remain key, the contract positions the company in a segment with recurring income characteristics.

The immediate reaction in Power Mech Projects share price reflects both the order inflow and the strategic significance of entering the urban transit O&M space.

Source:

• https://www.nseindia.com/get-quote/equity/POWERMECH/Power-Mech-Projects-Limited
• https://nsearchives.nseindia.com/corporate/POWERMECH_10042026113331_CL_PR.pdf