Power Mech secures Rs 549 crore order...

Power Mech Projects Limited, NSE: POWERMECH, has secured a Rs 549.37 crore order from Moxie Power Generation Limited for operation and maintenance services at a 2x600 MW thermal power plant in Tuticorin. The contract runs for 60 months from October 1, 2026, to September 30, 2031. The order matters because it provides a five-year revenue opportunity rather than a short-duration project contract. Long-term operation and maintenance work can provide better visibility than one-off construction orders, although profitability will depend on execution costs and contract economics. My view is that the duration of the contract is more important than the headline order value. The business gets recurring operational exposure over five years, which can support revenue visibility. However, investors should not assume the full order value will translate into profit at the same rate. Margin performance and cash conversion need to be monitored. I would watch execution from October 2026, margin commentary and any additional power-sector orders. The company’s ability to convert its order pipeline into sustainable cash flow will be the key test. Call: Positive order-book development, with execution and margins as the next triggers.