Shares of Power Mech Projects Ltd surged nearly 4% in early trade on Tuesday after the company secured a ₹971.98 crore contract from Telangana Power Generation Corporation Limited (TGGENCO).
The stock, known for its multibagger returns, touched a high of ₹2,829.60, gaining 3.78% from its previous close. The order pertains to the design and construction of an integrated township, including independent and multistorey residential quarters at the Yadadri Thermal Power Station in Nalgonda District, Telangana. The execution period for the project is 30 months from the date of site handover, and the contract value excludes GST. Power Mech Projects, with a market cap of ₹8,766 crore, has delivered a stellar 5-year return of over 1,550% and a 16% gain over the past year. The company’s stock opened at ₹2,720, maintaining strong investor interest following the announcement.
Established in Hyderabad in 1999, Power Mech is a leading infrastructure and engineering services firm catering to both public and private sectors in India and abroad. The company has completed over 208 major projects and employs more than 40,000 workers globally. In its Q3FY25 earnings, the company reported a robust 20.75% year-on-year rise in revenue, increasing from ₹1,108 crore to ₹1,338 crore. Net profit also surged 40.32% to ₹87 crore from ₹62 crore in the same period last year.
With this new order, Power Mech strengthens its foothold in the infrastructure space, particularly in large-scale civil and urban development works tied to the energy sector. The company is increasingly diversifying beyond core power services into urban infrastructure and township development.
