Power Mech cuts FY28 MDO revenue guidance by 30% after project delays
A Rs 1,563 crore order cancellation contributed to an FY26 inflow miss as management pulls back from water infrastructure.
— 1 earlier story on Power Mech Projects Ltd. →What's new
- Management cut FY28 MDO revenue targets from Rs 1,900 cr to Rs 1,250 cr.
- FY26 order inflows reached Rs 7,210 cr, falling short of the Rs 10,000 cr target.
- The firm is de-prioritizing water projects to focus on O&M and thermal EPC work.
Why it matters
The downgrade reflects execution hurdles at the SAIL project and external washery delays. By lowering MDO expectations while shifting to balance-of-plant EPC, the firm admits its earlier mining ramp-up assumptions were too optimistic.
What we're watching
- Whether the new Rs 12,000 cr order inflow target for FY27 holds.
- Execution progress on the BHEL Singrauli thermal project.
- Margins in the O&M segment following the shift away from water works.
The full read
Power Mech Projects is lowering its sights for the MDO segment, cutting FY28 revenue guidance by 30% to Rs 1,250 crore. Management blames the reduction on washery delays and a slow ramp-up at its SAIL project. FY26 order inflows hit Rs 7,210 crore, well under the Rs 10,000 crore target, a miss made worse by a Rs 1,563 crore contract cancellation. The firm is changing direction. It is moving toward balance-of-plant EPC work, starting with a thermal project award from BHEL in Singrauli. It is also pulling back from its water division to chase higher-margin operations and maintenance contracts and mining work. With an FY27 growth target of 21% and a new order inflow goal of Rs 12,000 crore, the next phase depends on the firm’s ability to secure and finish thermal projects without further cancellations.