Power Mech Projects Bags International Order Worth ₹492 Crore

Market snapshot: Power Mech Projects Limited announced that its Saudi subsidiary has secured an international erection contract valued at approximately ₹492 crore ($52.12 million). The project covers mechanical installation works for the Rabigh 2 IPP Expansion Project in Saudi Arabia over a 20-month execution timeframe.

Data Snapshot

• Total international contract value stands at USD 52.12 million, equivalent to ₹492 crore excluding taxes.
• Main scope consideration is valued at USD 40.98 million (≈₹386.87 crore), with an optional scope worth USD 11.14 million (≈₹105.13 crore).
• The contract execution window is fixed for 20 months starting January 1, 2027.

Key Takeaways

• Power Mech Arabia Contracting Company secured a ₹492 crore international erection order in Saudi Arabia.
• The order was awarded by a joint venture of Elsewedy Electric Power Systems Projects and Sinohydro Corporation Limited.
• Work includes installation of three Heat Recovery Steam Generators, one Steam Turbine, and Balance of Plant Combined Cycle Piping.
• Execution will span 20 months commencing January 1, 2027.

SAHI Perspective

The ₹492 crore international win strengthens Power Mech Projects' global footprint in industrial erection and combined-cycle power infrastructure. Expanding contract visibility in Middle Eastern markets diversifies revenue sources beyond domestic O&M and MDO operations.

Market Implications

The announcement underscores sustained order intake momentum for capital goods and power engineering firms operating across foreign energy project expansions. Execution starting in 2027 provides medium-term revenue visibility for the company's international operations.

Trading Signals

Market Bias: Bullish

The firm order addition of ₹492 crore enhances global execution backlog and medium-term operational visibility, backing a positive outlook.

Overweight: Capital Goods, Power Infrastructure & Engineering

Trigger Factors:

• Commencement of execution phase on January 1, 2027
• Timely milestone billing and currency conversion stability (USD/INR exchange rate)

Time Horizon: Medium-term (3-12 months)

Industry Context

Power engineering and construction contractors continue to benefit from regional energy infrastructure investments in the Middle East, alongside steady domestic thermal and industrial project rollouts.

Key Risks to Watch

• Execution delays or operational hurdles in international project deployment
• Foreign exchange volatility impacting USD-denominated contract conversions upon realization

Recent Developments

In October 2026, Power Mech Projects secured a domestic O&M contract worth ₹327.35 crore from Vedanta Aluminium Metal Limited for a 48-month period. Additionally, in September 2026, the company won a 60-month O&M order worth ₹970 crore from Vedanta Power Limited for its Sakti Thermal Plant.

Closing Insight

Continued international order wins build multi-year execution backlog, establishing Power Mech Projects' operational scale across foreign and domestic power engineering sectors.

High Performance Trading with SAHI.