Power Mech Shares Gain After Bagging A ₹296 Cr Monorail Contract

Shares of Power Mech Projects climbed over 7% on 10 April 2026. This came in after it bagged a ₹296 crore Mumbai Monorail deal. The stock opened at ₹2,090 and reached ₹2,248 on the Bombay Stock Exchange at 02:47 pm, following this announcement.

The company won the contract as the lowest bidder, beating a few larger players in the process.

But what exactly has the company won, and why does it matter?

What Is The Mumbai Monorail Deal All About?

Power Mech Projects Limited (PMPL) has secured an operations and maintenance (O&M) contract from Maha Mumbai Metro Operation Corporation Limited (MMMOCL) for the Mumbai Monorail.

The scope is quite wide, covering the stretch from Sant Gadge Maharaj Chowk to Chembur in Mumbai. This includes a 19.54 km (kilometre) long corridor with 17 stations.

The contract runs for five years, and it goes beyond just running trains.

PMPL will take care of the full operations and maintenance, including the new rolling stock and the upgraded Communication-Based Train Control (CBTC) signalling system.

The bidding process itself saw participation from some large players. It took place earlier this year, in January, with companies like Adani Infrastructure Management Services Limited in the race. PMPL eventually emerged as the lowest bidder, with a winning bid of ₹296 crore.

Who Is Power Mech Projects, And How Has It Been Performing?

Power Mech Projects Limited was founded by S. Kishore Babu in 1999. It is a Hyderabad-based infrastructure company. What started with a focus on power projects has now grown into a wider presence across infrastructure, in India as well as overseas.

The scale today is quite different. It runs several sites simultaneously, supported by a sizeable workforce.

On the financial front, growth has been steady. Revenue from operations grew about 24%, from ₹4,206 crore in FY24 to ₹5,234 crore in FY25. Profit after tax also moved up, from ₹248 crore to ₹348 crore, roughly 40% higher year-on-year.

While power remains its core, the company has been gradually building capabilities across EPC (Engineering, Procurement and Construction) and O&M, which is where newer opportunities are emerging.

Also Read - RBI Announces ₹2 Lakh Crore VRRR Auction To Absorb Excess Liquidity

What Should Investors Watch Going Forward?

For Power Mech, this is beyond a one-time order. It is a step into the urban mobility space, which the company has been moving towards for a while now.

As Chairman and Managing Director, Sajja Kishore Babu highlighted, the fit is quite natural. The company already handles large-scale operations and maintenance in industrial projects. This simply takes those capabilities into a different setting, where the requirements are a bit more specialised.

There is a broader angle, too. Moving beyond its traditional power-linked work helps the company diversify and build credibility in a new segment, possibly leading to more opportunities in metro and rail projects over time.

From an investor’s point of view, the order itself is the immediate trigger. But the real story lies ahead. Execution will matter. So will margins, especially in O&M contracts where pricing can be tight. It will also be interesting to watch whether the company can build on this and keep winning similar projects.

Sources:

Business Standard

Indian Express

Power Mech Projects