Power Mech Wins ₹266 Crore Adani Order; Shares Rise 0.86%

Mumbai, June 3: Power Mech Projects has secured a fresh contract worth ₹266.26 crore from Adani Infrastructure Management Services Ltd (AIMSL) for operating and maintaining a thermal power plant in Maharashtra.

The contract covers operations and maintenance services for a 2×300 MW thermal power plant at Butibori, near Nagpur. Unlike one-time construction assignments, the project will generate revenue over a longer period, with execution scheduled across 60 months, from July 2026 to June 2031, according to an exchange filing on Tuesday.

For Power Mech, the order strengthens a business segment that has become increasingly important in recent years. While the company remains known for power-sector construction and engineering projects, long-duration maintenance contracts provide greater earnings visibility and recurring cash flows.

The company classified the order as a “Mega Order”, a category reserved for projects valued between ₹300 crore and ₹400 crore under its internal classification framework. The disclosed contract value is ₹266.26 crore excluding GST.

Power Mech also clarified that the transaction is not a related-party deal and that neither its promoters nor promoter group entities have any interest in the awarding company.

Stock Market Snapshot

Investors welcomed the development, pushing the stock higher in early trading.

As of 11:26 AM IST, Power Mech Projects shares were trading at ₹2,510, up 0.86% from the previous close of ₹2,488.50.

The Power Mech share price climbed around ₹2,510 after the filing became public. The positive reaction suggests investors view the contract as a meaningful addition to the company’s already healthy order pipeline.

Market participants typically assign greater value to long-term O&M contracts because they offer predictable revenue streams and are generally less execution-intensive than large EPC projects.

Why The Order Matters

India’s power sector continues to generate opportunities not only in construction but also in operating and maintaining existing assets.

As utilities and infrastructure owners focus on improving plant efficiency and reliability, specialised service providers such as Power Mech are increasingly being entrusted with long-duration maintenance assignments.

The latest order also highlights the growing relationship between infrastructure developers and experienced O&M contractors, particularly as power demand remains strong and thermal generation continues to play a significant role in meeting electricity requirements.

For Power Mech, the contract adds another marquee customer to its portfolio and reinforces its presence in the thermal power segment.

About Power Mech Projects

Power Mech Projects is one of India’s leading engineering and infrastructure services companies, with operations spanning power generation, transmission, railways, industrial construction and operation and maintenance services.

Over the past decade, the company has steadily diversified beyond traditional power-plant construction into long-term service contracts and infrastructure development projects. This broader business mix has helped create a more balanced revenue profile.

The company serves public and private sector clients across India and has built a sizeable order book through a combination of EPC, civil construction and maintenance assignments.

Conclusion

The ₹266.26 crore order may not be the largest in Power Mech’s history, but its long-term nature makes it strategically important.

With execution spread over five years, the contract offers revenue visibility and strengthens the company’s foothold in the operations and maintenance segment. The market’s initial reaction was positive, with the stock gaining nearly 1% in morning trade as investors assessed the impact of the new order on future earnings.

Source:

• https://www.nseindia.com/get-quote/equity/POWERMECH/Power-Mech-Projects-Limited
• https://nsearchives.nseindia.com/corporate/POWERMECH_03062026105049_DISCLOSURE.pdf