Order Win

Power Mech Secures ₹266.26 Crore O&M Contract from Adani Group for 2×300 MW Thermal Power Plant

NSE

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BSE

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Power Mech Projects Limited has received a domestic Operations & Maintenance (O&M) contract worth ₹266.26 crore from Adani Infrastructure Management Services Limited. The contract covers KPI-based O&M services for a 2×300 MW thermal power plant at Butibori, Maharashtra, and will be executed over a five-year period from July 2026 to June 2031.

PRICE-SENSITIVE TRIGGER

Event: Receipt of Operations & Maintenance (O&M) contract from Adani Infrastructure Management Services Limited.

Type: Order Win

Impact: Positive

Immediate Effect: The order strengthens Power Mech’s O&M business portfolio, provides long-term revenue visibility for five years, and reinforces its presence in the thermal power plant services segment.

Key Metrics:

Order Value: ₹266.26 Crore
Contract Duration: 60 Months
Project Capacity: 2×300 MW Thermal Power Plant
Execution Period: 01 July 2026 to 30 June 2031
Order Type: KPI-based Operations & Maintenance Contract
GST Treatment: Order value excludes GST

Highlight:

Key Highlight: ₹266.26 Crore long-term O&M contract secured from an Adani Group entity.

What Happened ?

Power Mech Projects Limited informed stock exchanges that it has secured a domestic Operations & Maintenance contract from Adani Infrastructure Management Services Limited. The contract involves providing KPI-based O&M services for a 2×300 MW thermal power plant located at Butibori, Maharashtra.

The project will run for five years and is scheduled to commence on July 1, 2026. The order value stands at ₹266.26 crore excluding GST.

Key Details

Contract Overview:

Awarding entity is Adani Infrastructure Management Services Limited.
Contract pertains to KPI-based Operations & Maintenance services.
Services will be provided for a 2×300 MW thermal power plant.
Plant is located at Butibori, Maharashtra.
Contract tenure is 60 months.
Execution period runs from July 2026 to June 2031.
Order value is ₹266.26 crore excluding GST.
Contract has been awarded by a domestic entity.
Transaction is not classified as a related-party transaction.
Promoter group has no interest in the awarding entity.

Note:

The order provides stable service revenue visibility over a multi-year period and further strengthens Power Mech’s recurring O&M business segment.

Risk Analysis

Summary:

The contract is operational in nature and execution-related risks remain limited compared to EPC projects. Revenue realization will depend on meeting service performance standards and contractual KPIs.

Key Risks:

Performance-linked obligations may impact revenue realization if KPIs are not achieved.
Long-term contracts carry manpower and cost escalation risks.
Thermal power sector operating conditions may influence service requirements.
Margin performance will depend on efficient project execution throughout the contract period.

Worst Case Scenario:

Failure to meet contractual performance standards could lead to penalties, reduced profitability, or contract-related disputes.

Risk Level: Low

Company Commentary

Power Mech has secured the order from Adani Infrastructure Management Services Limited.
Scope includes KPI-based Operations & Maintenance services.
Services will be executed for a 2×300 MW thermal power plant at Butibori, Maharashtra.
Contract execution period extends for 60 months from July 2026 to June 2031.
The company confirmed that the order is not a related-party transaction.
The promoter/promoter group has no interest in the awarding entity.

Official Exchange Filing: Power Mech Projects Limited