Multibagger Small-Cap Stock Power Mech Bags ₹370 Crore Order from Adani Power Subsidiary

Market Performance

The small-cap multibagger stock Power Mech Projects remained in focus on Thursday after announcing a fresh order win. Despite the significant development, the stock slipped 3% in trade, closing at ₹3,037.10. It had opened higher at ₹3,129.80 against the previous day's close of ₹3,130.40, but selling pressure weighed on the session.

Over the past few months, the stock has been volatile. While it surged 68.53% in the last six months, it also corrected by 10.24% over the past year. Yet, the long-term story remains striking—Power Mech has delivered a staggering 1,220% rally in five years, turning into one of the most recognized multibagger small-cap stocks on Dalal Street.

Big Order Win from Adani Power Arm

Power Mech announced it has bagged a major domestic contract worth ₹370.84 Crore from Mahan Energen Limited (MEL), a subsidiary of Adani Power.

The contract is linked to the upcoming Mahan Phase-III (2 x 800 MW) thermal power project in Singrauli, Madhya Pradesh.

The scope of work covers:

• Civil construction
  
  
• Prefabricated structural steel installation for BTG Units 1 & 2
  
  
• Main powerhouse, central control building, ESP and FGD setup
  
  
• Limestone handling system, switchyard, and other related works
  
  

The project timeline has been fixed at 30 months from the issuance of the Notice to Proceed. Power Mech clarified that this is not a related-party transaction, as neither the promoters nor group entities hold any stake in MEL.

Company Snapshot

Hyderabad-based Power Mech Projects has grown into a leading name in infrastructure construction and industrial services. The latest win strengthens its presence in India's thermal power sector, an area where execution capabilities and timelines are critical.

Financial Highlights – Q1 FY25

Power Mech recently reported robust financial numbers for the April–June 2025 quarter:

• Revenue: ₹1,293 crore, up 28.4% YoY (vs. ₹1,007 crore last year)
  
  
• EBITDA: ₹170.4 crore, up 49% YoY (vs. ₹114.4 crore last year)
  
  
• EBITDA Margin: 13.2% (vs. 11.3% a year ago)
  
  
• Net Profit: ₹80.5 crore, up 30.4% YoY (vs. ₹61.7 crore last year)
  
  

These numbers reflect strong operational efficiency and improved margin performance in a challenging market.

Summary

The story of Power Mech Projects blends short-term volatility with long-term wealth creation. While the stock corrected on the day of the order announcement, its ₹370.84 crore contract win from Adani Power’s subsidiary adds to its growing order book.

Financially, the company continues to show strength, backed by double-digit revenue and profit growth. For investors tracking multibagger small-cap stocks, Power Mech stands as a classic case of how strong execution, consistent order inflows, and long-term growth can build extraordinary shareholder value.