Power Mech Projects Secures ₹327.35 Crore Order From Vedanta

Market snapshot: Power Mech Projects Limited has secured an operations and maintenance contract valued at ₹327.35 crore from Vedanta Aluminium Metal Limited. The order covers long-term management of power plant facilities at Lanjigarh in Odisha across a 48-month tenure.

Data Snapshot

• Contract value stands at ₹327.35 crore, excluding GST, awarded by Vedanta Aluminium Metal Limited.
• Scope includes end-to-end O&M for a 130 MW power plant (2x50 MW and 1x30 MW units) and BOP for a 90 MW coal-fired co-generation power plant in Lanjigarh, Odisha.
• Execution timeframe is set for a contract period of 48 months.

Key Takeaways

• Secured ₹327.35 crore O&M order from Vedanta Aluminium Metal Limited.
• Contract extends execution footprint to 48 months in Lanjigarh, Kalahandi, Odisha.
• Covers complete operations for 130 MW thermal power plant units and balance of plant for a 90 MW co-generation facility.
• No promoter group interest involved; transaction is non-related party.

SAHI Perspective

The ₹327.35 crore win demonstrates sustained customer retention and service trust within the industrial captive power O&M segment. Recurring 4-year contract structures provide predictable baseline operating revenue stream visibility.

Market Implications

Strengthens Power Mech Projects' long-term order book in power plant maintenance services, generating stable annuity-style operating revenue over the 48-month execution period.

Trading Signals

Market Bias: Bullish

Order win of ₹327.35 crore provides clear multi-year revenue visibility over 48 months, reinforcing strong positioning in power operations and maintenance.

Overweight: Capital Goods, Power Infrastructure Services

Trigger Factors:

• Order book trajectory updates in quarterly results
• Revenue recognition start from Lanjigarh facility in upcoming quarters

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

Industry Context

Industrial captive power producers in India continue outsourcing core O&M functions to specialized engineering firms to optimize plant heat rates and minimize operational downtime.

Key Risks to Watch

• Potential operating cost escalations over the 48-month operational contract period
• Unplanned power plant outages impacting operational efficiency thresholds

Recent Developments

Power Mech Projects has secured multiple major O&M contracts from Vedanta entities. In September 2026, the company won a ₹970 crore O&M contract from Vedanta Power Limited for the 2x600 MW Sakti Thermal Plant over 60 months. In April 2026, it bagged a ₹109.22 crore O&M order from Hindustan Zinc for a 91.5 MW captive power plant spanning 48 months.

Closing Insight

Power Mech Projects continues to build a strong recurring revenue base through multi-year O&M contracts with top-tier industrial clients like Vedanta.

High Performance Trading with SAHI.