Power Mech Q1 FY27: consolidated PAT +11% YoY lags 26% revenue growth as margins compress

Power Mech Projects' consolidated Q1 FY27 revenue rose 25.5% YoY to ₹1,623.68 Cr, running ahead of management's 21% FY27 revenue-growth guidance from the Q4 FY26 call. But consolidated PAT grew only 10.9% YoY to ₹89.33 Cr, a roughly 15-point gap to revenue growth, and NPM compressed to 5.47% from 6.17% a year ago and 7.23% in the seasonally strong Q4 FY26 quarter (revenue and PAT are also down 23.1% and 41.8% QoQ respectively, consistent with Q4 typically carrying the year's heaviest execution and billing for EPC players — not a genuine slowdown signal). The margin and profit-growth shortfall traces to the subsidiary book: the auditors' review report flags that 10 Indian subsidiaries contributed ₹200.12 Cr of revenue but a combined ₹9.86 Cr net loss for the quarter, pulling consolidated PAT below standalone PAT (₹95.66 Cr, +92.2% YoY) — an unusual inversion that shows the parent's core EPC/O&M business performing far better than the group as reported. Quarter-level EBITDA (PBT plus finance cost and depreciation) works out to roughly 10.8% of total income, still short of the 12.5% FY27 EBITDA target management laid out last quarter, when it said margins were being weighed down by operating costs and lower other income and would improve through the year on a richer O&M/EPC and MDO mix. No formal Street consensus estimates for this specific quarter turned up in a search, so vsStreet is unknown rather than assumed. On the order side, the company disclosed a ₹1,008.9 Cr order from JSW Thermal (June 20) and a ₹266.26 Cr O&M order from Adani Group (June 3) during the quarter — together about ₹1,275 Cr against the ₹12,000 Cr FY27 order-inflow target management set out, with the bulk of inflows presumably still to come through the year. Alongside the results, the board approved an ESOP pool of up to 10 lakh shares and accepted the resignation of non-executive director Sajja Lakshmi. Overall, the quarter is a case of strong topline execution not yet converting to proportionate group profit, with the subsidiary drag and the sub-target EBITDA margin the two things to track into Q2.