Power Mech cuts MDO guidance by 30%, misses FY26 order inflow target
The engineering contractor trimmed its FY28 mine-development revenue forecast to ₹1,250 crore after client-side delays at SAIL. FY26 orders came in at ₹7,210 crore, well short of the ₹10,000 crore target.
— 2 earlier stories on Power Mech Projects Ltd. →What's new
- Power Mech slashed its FY28 MDO revenue guidance to ₹1,250 crore from ₹1,800-1,900 crore.
- FY26 order inflow of ₹7,210 crore missed the ₹10,000 crore target, partly due to a ₹1,563 crore cancellation.
- Company guided for 21% revenue growth in FY27 and is pivoting towards balance-of-plant EPC via a BHEL Singrauli project.
Why this matters
The MDO guidance cut is the clearest sign yet that Power Mech's mining ramp-up is stuck on client-side problems. A 30% haircut to a segment the company flagged as a growth driver forces a rethink of the ₹10,000 crore order-inflow run-rate it was pitching to the Street. The pivot to balance-of-plant EPC is an attempt to de-risk, but it dilutes the margin story.
What we're watching
- Whether the BHEL Singrauli thermal project leads to a broader BOP-EPC pipeline or stays a one-off.
- How quickly SAIL's washery delays resolve — they are the primary drag on MDO revenue.
- If the ₹12,000 crore FY27 order inflow target survives the ₹1,563 crore cancellation drag.
The full read
Power Mech's FY28 MDO revenue target is now ₹1,250 crore. It was ₹1,800-1,900 crore. The 30% cut lands squarely on client-side washery delays and a slow SAIL ramp, problems the company doesn't control. The missed FY26 order book tells a similar story: ₹7,210 crore against a ₹10,000 crore target, with ₹1,563 crore cancelled. For a company that pitched mining as its next growth leg, that's a material stumble. The pivot is toward balance-of-plant EPC, starting with a Singrauli thermal award from BHEL, and a shift to O&M contracts and away from the water division. Management guided for 21% revenue growth in FY27 and set a ₹12,000 crore order inflow target. The MDO guidance cut, though, is the number that will reset expectations. It signals that the mining ramp-up, once the centrepiece of the growth story, is now a drag.
Questions answered
- Why did Power Mech cut its MDO guidance so sharply?
- Client-side washery delays and a conservative ramp-up at the SAIL project forced the cut. The company lowered FY28 MDO revenue to ₹1,250 crore from ₹1,800-1,900 crore, a reduction of about 30%.
- How bad was the FY26 order inflow miss?
- Power Mech booked ₹7,210 crore in orders against a ₹10,000 crore target. A ₹1,563 crore order cancellation accounted for a significant portion of the shortfall.
- What is the new strategic direction?
- Power Mech is de-emphasising its water division and moving into balance-of-plant EPC work, starting with a Singrauli thermal project from BHEL. It is also shifting focus to higher-margin O&M contracts and mining opportunities.
- What is the revenue growth outlook for FY27?
- Management guided for 21% revenue growth in FY27. The open question is whether the MDO drag and order inflow miss will weigh on execution.
Story so far
All notes on POWERMECH →- 22 May 2026 · 12:27 PM IST Power Mech cuts MDO guidance by 30%, misses FY26 order inflow target
- 1d ago Power Mech lands ₹266 cr Adani contract to run its thermal plant
- 14d ago Consolidated profit up, standalone flat for Power Mech in FY26