Management Discussion and Analysis Report
1. Economic Overview
1.1 Global Economy
In CY 2025 the global economy grew by 3.5%, holding up despite persistent geopolitical uncertainty. Investment in technology, favourable financial conditions and supportive fiscal and monetary policy underpinned that growth.
Advanced economies grew by 1.9%, led by consumer spending and continued investment in innovation, particularly in the United States. Emerging economies outpaced them at 4.5%, on strong Chinese export activity and sustained trade volumes across the wider Asian region. Global inflation moderated to 4.1% as supply chains eased and labour markets rebalanced, helped by foreign investment inflows and a weaker US dollar.
Prices nonetheless remained sensitive to shocks, particularly in energy. Conflict in West Asia raised energy input costs, disrupted the passage of petroleum products and fed through to inflation across many economies. The war in Ukraine remains unresolved after four years, leaving the global economy to absorb two simultaneous conflicts, while tariff actions by the United States added a further layer of uncertainty to world trade.
Outlook
Shifting trade policy and rising fiscal pressure across major markets continue to shape the global outlook. Global GDP growth is projected at 3.0% in CY 2026 as monetary easing sustains domestic demand, recovering to 3.4% in CY 2027. Inflation is expected to rise to 4.4% in CY 2026 before easing to 3.5% in CY 2027 on softer labour markets and weaker demand for traded goods.
Escalating conflict in West Asia has sharpened the focus on energy security, raising concerns over supply continuity and fossil fuel price volatility. Growth across Middle East and Central Asia fell sharply to 0.7% in CY 2026 and should recover to 4.6% in CY 2027, if energy production and transport routes normalise. Against this backdrop, renewable energy is drawing greater policy attention as countries seek energy systems more resilient to supply and price shocks.
1.2 Indian Economy
The Indian economy sustained steady growth in FY 2025-26 on stable macroeconomic fundamentals and continued policy support. Real GDP grew by 7.7% despite a difficult global environment, keeping India among the fastest-growing major economies. Headline consumer price inflation held at about 3.5% (within the Reserve Bank of Indias target band), largely supported by lower food inflation, and the Reserve Bank eased the repo rate from 6.25% to 5.25% over the year, loosening credit conditions.
Lower income tax and GST rates lifted domestic demand. Private final consumption expenditure held its momentum and investment activity stayed strong. Industrial activity was equally firm, aided by sustained infrastructure spending and steady growth in manufacturing and the core sectors. The external sector was the weak point: soft merchandise demand and tariff-related trade disruption weighed on exports, and the Rupee depreciated towards Rs.93-94 per US dollar on tariff uncertainty and portfolio outflows.
Infrastructure expanded rapidly, supported by a Union Government capital expenditure allocation of Rs.11.21 lakh crore for FY 2025-26 directed at roads, railways, urban infrastructure, power, energy and minerals, with particular emphasis on renewable energy. This allocation carries forward the National Infrastructure Pipeline (NIP) launched in 2019 and, alongside the National Monetisation Pipeline (NMP), should sustain project development and capacity addition across these sectors, widening the addressable opportunity for engineering and construction contractors.
During the reporting year, India met its target of drawing 50% of cumulative installed electric power capacity from non-fossil sources, five years ahead of the 2030 commitment under its Nationally Determined Contribution (NDC) to the Paris Agreement. Capacity addition now advances on two fronts: the established renewable energy investment model, and newer nonfossil sources including nuclear and energy storage.
Outlook
Indias GDP is projected to grow at a stable 6.9% in FY 2026-27 on domestic consumption and the public capital expenditure cycle. Consumer price inflation is projected at 5.1%, supported by adequate reservoir levels and the continued benefit of goods and services tax rationalisation. Rising global energy prices and supply- chain disruption arising from the conflicts in West Asia and Ukraine could add to inflationary pressure and weigh on growth, and wider involvement of global powers in either conflict would compound the trade and logistics impact.
Indias response is to accelerate the energy transition and reduce import dependence. Production-linked incentive schemes and infrastructure-focused policy are building domestic manufacturing capacity, consistent with the Atmanirbhar Bharat objective of self-reliance in critical inputs.
2. Industry Overview
2.1 Indian Power Sector
Indias power sector has been structurally transformed over the past decade, evolving into a reliable, high- capacity grid on the back of sustained investment, institutional reform and a diversified generation mix. Total installed generation capacity stood at 532.74 GW as on 31 March 2026, with non-fossil sources accounting for the majority at 53.2%, or 283.47 GW.
Economic growth and rising living standards drove a record addition of 57.53 GW during FY 2025-26, well ahead of the 33.24 GW added in FY 2024-25. Renewable sources including large hydro accounted for 54.6 GW of that addition, led by 44.61 GW of solar and 6.06 GW of wind; including nuclear, non-fossil capacity rose by about 55.2 GW. Gas-based capacity declined to 20.12 GW from 24.53 GW a year earlier. Within the non-fossil base, solar now accounts for 150.26 GW, wind 56.09 GW, large hydro 51.41 GW, bio energy 11.75 GW, small hydro 5.17 GW and nuclear 8.78 GW. The Ministry of New and Renewable Energy targets 566 GW of installed non-fossil capacity by 2031-32.
Nuclear serves two purposes as the solar share rises: carbon-free base-load capacity, and reliable supply during non-solar hours. The Government projects capacity of over 22 GW by the early 2030s as indigenous 700 MW and 1,000 MW reactors come on line, and the Nuclear Energy Mission targets 100 GW by 2047. The near-term addition of up to 63 GW of coal-based capacity by 203132 serves the same balancing purpose in the interim.
The SHANTI Act, 2025-the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act - received Presidential assent in December 2025. It replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010, and opens nuclear development to regulated private participation for the first time. Its consequences run across several of the Companys businesses and are taken up in the Forward Markets section and in the business segment sections that follow.
The Government has also established a planning framework for large-scale energy storage through Pumped Storage Projects and Battery Energy Storage Systems. The Central Electricity Authority, the nodal agency for power sector planning and forecasting, estimates that reliable renewable integration requires storage capacity to rise from about 6 GW today to 81 GW by 2031-32, comprising about 44 GW of pumped storage and 37 GW of battery storage. India has committed to net zero by 2070 and to reducing the emissions intensity of GDP by 45% by 2030.
Year |
Coal and lignite | Gas | Diesel | Thermal total | Nuclear | Hydro | Renewables | Hydro + renewables | Grand total |
FY 2021-22 |
210.7 | 24.9 | 0.5 | 236.1 | 6.8 | 46.7 | 109.9 | 156.6 | 399.5 |
FY 2022-23 |
211.9 | 24.8 | 0.6 | 237.3 | 6.8 | 46.9 | 125.2 | 172.0 | 416.1 |
FY 2023-24 |
217.6 | 25.0 | 0.6 | 243.2 | 8.2 | 46.9 | 143.6 | 190.6 | 442.0 |
FY 2024-25 |
221.8 | 24.5 | 0.6 | 246.9 | 8.2 | 47.7 | 172.4 | 220.1 | 475.2 |
FY 2025-26 |
228.6 | 20.1 | 0.6 | 249.3 | 8.8 | 51.4 | 223.3 | 274.7 | 532.8 |
Sector dynamics
The sector has been transforming since the Electricity Act, 2003, which opened power generation to greater private participation. The Paris Agreement adopted at COP21 in 2015 then committed signatories to limiting global temperature rise, channelling investment into non-fossil generation - principally solar and wind, alongside hydropower backed by pumped and battery storage. Indias policy has stayed aligned with those commitments, and the Ministry of Power continues to fast-track non-fossil generation and storage.
The Central Electricity Authoritys National Generation Adequacy Plan for 2026-27 to 2035-36 sets out a ten- year capacity path. By 2031-32, as an interim milestone, installed capacity reaches 877 GW: 291 GW coal, 20 GW gas, 16 GW nuclear, 61 GW large hydro, 356 GW solar, 113 GW wind and 20 GW other renewables, with 37 GW of battery storage and 44 GW of pumped storage providing day-tonight balancing. By 2035-36, installed capacity reaches 1,121 GW: 315 GW coal, 20 GW gas, 22 GW nuclear, 78 GW large hydro, 509 GW solar, 155 GW wind, 16 GW biomass and 6 GW small hydro. Non-fossil capacity reaches about 786 GW, or 70% of the total, against 283.47 GW at March 2026, with total storage of 174 GW and 888 GWh.
Under this framework storage is not counted within generation capacity additions; it functions as enabling backup supporting grid stability during non-solar hours.
Coal-based capacity is being augmented from 228 GW in FY 2025-26 to 291 GW by 2031-32, an addition of about 63 GW over six years. This reflects a deliberate near-term emphasis on base-load capacity, established through technical studies, to balance generation and supply as solar and wind expand rapidly.
The changing mix works in favour of engineering, project execution and service companies: planned additions across coal, pumped storage, battery storage and nuclear all translate into construction and service scope. Nuclear augmentation is the most consequential of these shifts, adding materially to the non-fossil base while supplying stable round-the-clock power.
Grid and transmission
Generation capacity is only useful if it can be evacuated, and the transmission system is expanding in step. The national network has exceeded 5 lakh circuit kilometres with total transformation capacity of 1,407 GVA. Peak demand met during FY 2025-26 was 242.49 GW. Against projected peak demand of 388 GW by 2032, the National Electricity Plan for central and state systems has been finalised with estimated investment of Rs.9.15 lakh crore, and energy requirement is expected to rise from 1,929 billion units in FY 2026-27 to 3,366 billion units by 2035-36, with peak demand rising from 289 GW to 459 GW over the same period. Distribution is being modernised in parallel through schemes targeting network upgrades, consumer metering and loss reduction, and the Government has raised POWERGRIDs investment delegation limit per subsidiary from Rs.5,000 crore to Rs.7,500 crore to support the expanding renewable base and rising demand.
Captive power and regulatory direction
Policy measures targeting distribution efficiency and stronger distribution company finances should strengthen sector stability, and continued investment across conventional and renewable segments is expected to create long-term financing opportunities. The Electricity (Amendment) Rules, 2026, notified by the Ministry of Power in March 2026, substituted Rule 3 of the Electricity Rules, 2005 and clarified the ownership and consumption requirements for captive generating plants. The twin thresholds are retained - captive users must hold at least 26% of the plant and consume at least 51% of annual generation - but group structures are now recognised, with a company, its holding company and fellow subsidiaries treated as a single captive user, and collective rather than proportional fulfilment permitted for associations of persons. Verification through designated nodal agencies takes effect from April 2026. Clearer captive rules reduce regulatory risk for the steel, aluminium, cement and chemicals industries, support cost-effective supply and encourage greater use of non-fossil sources.
Captive power is a significant contributor in metals and minerals, petrochemicals, cement and other industries that depend on reliable, stable supply. The installed captive base is nearly 81 GW in units ranging from 1 MW to 600 MW. Expansion in the metals sector, particularly steel, aluminium and zinc, should add roughly 8 to 10 GW. Planned aluminium capacity alone involves investment of about Rs.80,000 crore to f1,00,000 crore, creating opportunities for construction and service companies comparable to those arising from utility- scale coal projects.
2.2 International Power Sector (West Asia and West Africa)
West Asia is the Companys principal international market, and its power sector is passing through a transition that expands rather than contracts the addressable work. The regional framework is shifting from one dominated by oil-fired generation towards a mix weighted increasingly towards natural gas and renewables, driven by climate commitments, by the economics of freeing crude for export, and by national diversification programmes that are themselves raising industrial power demand.
The scale is substantial. Peak demand across the Gulf Cooperation Council countries is approaching 150 GW, with Saudi Arabia the largest single market at around 73 GW of peak demand against installed capacity in excess of 110 GW, most of it combined-cycle gas and oil-fired plant. The United Arab Emirates follows at roughly 34 GW of peak demand, then Kuwait, Qatar, Oman and Bahrain. Demand growth is structural rather than cyclical: air-conditioning load, population growth, industrial diversification and, increasingly, data centre development all point the same way.
The most consequential development for a construction and maintenance contractor is the gas build-out. Across the wider Middle East and North Africa region, gas-fired capacity is expected to rise by more than 110 GW over the coming decade, against roughly 350 GW of total capacity in operation. Gas-fired plant requires the same erection, commissioning and long-term maintenance disciplines the Company already provides, and the resulting fleet carries a maintenance obligation extending decades beyond construction.
Renewable deployment is accelerating alongside. Saudi Arabia has stated an objective of drawing half its electricity from renewables by 2030, with the balance from natural gas, and by 2027 Saudi Arabia, the United Arab Emirates, Egypt, Morocco and Oman together are expected to account for the large majority of new renewable capacity additions across the region, potentially exceeding 75 GW of solar and wind over the next several years. That build-out is creating its own secondary requirement: curtailment has already appeared at solar peaks in parts of Saudi Arabia, prompting substantial planned grid reinforcement and additional storage capacity. Oman has liberalised battery storage policy, and storage is increasingly attached to renewable procurement across the region.
Nuclear generation has established itself in the United Arab Emirates, where about 5.6 GW is in operation, and Saudi Arabia is progressing a civil nuclear programme, having concluded a bilateral civil nuclear cooperation framework with the United States. For a services contractor the relevance lies in the balance of plant and maintenance layer rather than the reactor island.
Water is inseparable from power in the region.
Desalination capacity is very large - the Saudi water authority alone operates in the order of 11 million cubic metres a day - and much of it is coupled with generation, since using reject heat roughly halves the energy required. Independent water and power projects are therefore a single asset class, and maintenance mandates typically span both. The Company already maintains reverse osmosis capacity in Abu Dhabi. As renewables and nuclear expand, water production will gradually decouple from thermal generation, changing the technical requirement without reducing it.
Cross-border interconnection improves supply security and raises utilisation of existing generation assets, though its practical effect should not be overstated: interconnection capacity remains small relative to regional peak demand, and cross-border electricity trade is a fraction of the level seen in more integrated markets. Its function today is emergency support and reserve-sharing rather than systematic transfer of power between markets.
Against these fundamentals the region carries real risk. Military hostilities have introduced supply-side uncertainty into energy markets, raised insurance and shipping costs on regional trade routes, and created uncertainty around the pace of foreign investment into non-oil sectors. Shipping disruption around the Strait of Hormuz has affected liquefied natural gas flows, although major importing economies have so far adapted. Rebuilding of damaged power, water and industrial infrastructure should generate engineering and maintenance requirements over the medium term. The Companys approach is to build on the recurring maintenance layer, the more resilient of its two revenue streams in the region, and to pursue construction work selectively.
West Africa presents a different proposition. Regional electricity demand is growing at more than 8% a year, and the West African Power Pool - the Economic Community of West African States agency that has spent twenty-five years knitting fourteen national systems into a single market - reached a milestone in November 2025 when West African grids operated synchronously for the first time, with permanent synchronisation targeted thereafter. Its regional master plan identifies 75 priority projects requiring about USD 36 billion, comprising 47 generation projects totalling around 15.5 GW and 28 transmission projects covering roughly 23,000 km.
Delivery, however, lags planning. In Nigeria, the Companys principal market in the region, installed grid capacity of about 13,600 MW yields available generation nearer 5,000 MW, and around half the population still lacks reliable access. The practical consequence is that industrial and commercial users generate their own power: captive capacity now exceeds what the national grid delivers, and the Electricity Act, 2023 has devolved regulation to state markets while the regulator has begun approving direct supply arrangements between generators and industrial customers.
For a services contractor, therefore, the addressable work in the region is captive and industrial generation rather than utility-scale grid supply - the position the Company already holds through the 400 MW combined cycle plant at the Dangote refinery - with the regional transmission and generation build-out a longer-dated prospect.
Middle East Power Sector
Middle East Net Electricity Demand, 2024-2027 (in %)
2.3 Infrastructure Sector
Indias infrastructure expansion is guided by the Viksit Bharat @2047 vision of building efficient assets across sectors to support long-term national aspirations. The National Monetisation Pipeline introduced by NITI Aayog in 2021 was the first major step, now carried forward through its second phase covering FY 2025-26 to FY 2029-30. A key objective is to strengthen institutional capacity for asset monetisation across highways, railways, power, petroleum and natural gas, civil aviation, ports, warehousing, urban infrastructure, coal, mines, telecom and tourism, setting a common reference framework for implementing agencies and investors with the aim of recycling capital out of operating assets and into new capacity.
This should draw more capital into the sector, raise its quality and support capacity addition through Infrastructure Investment Trusts, Toll-Operate-Transfer arrangements, public-private partnership models including build-operate-transfer and design-build- finance-operate-transfer, initial public offerings, private placements, securitisation, leasing, commercial auctions of coal and mining assets, and operation, maintenance and development agreements.
To sustain momentum, the Government is raising public capital expenditure by roughly 9% to Rs.12.2 lakh crore for FY 2026-27, which should lift productive capacity and crowd in private capital. Cumulative investment of over USD 22 trillion is expected by 2070 across the energy transition, with transmission and grid infrastructure needing to expand in step with generation capacity.
Railways and metro
Railway capital expenditure for FY 2026-27 is estimated at Rs.2,93,030 crore, 10.5% above the revised estimate for FY 2025-26, with central budgetary support of Rs.2,78,030 crore financing 95% of it. The National Railway Plan sets out a phased roadmap with cumulative capital expenditure of about Rs.30 lakh crore. It targets full electrification, of which 99.2% is already complete, together with dedicated freight corridors, a high-speed network and logistics hubs, including about 2,521 km of high-speed rail by 2031 and redevelopment of about 1,309 stations. Seven high-speed corridors are under development: Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri.
Further expansion targets freight traffic of 15,583 million tonnes a year against 6,366 million tonnes in FY 202526, with track upgraded to lift average freight speed from 25 km/h to 50 km/h - enough to compete with road and raise rails share of freight from 28% to 45%. Alongside track and formation work, this build-out generates demand for electrification, overhead equipment and signalling systems as routes are upgraded and new corridors commissioned.
Metro networks currently serve 26 cities across 1,095 km of routes, reducing urban pollution and congestion, and are set to extend to about 20 more cities and nearly 2,000 km. Maintenance depots and workshops are the principal construction scope. Operators are also increasingly outsourcing the maintenance of completed systems, which opens a service market alongside the construction one.
Roads and highways
Indias road network of approximately 63.74 lakh km is the worlds second largest and the countrys primary transport mode, spanning national highways, expressways, state highways, and district and village roads. The national highway network expanded 60% from 91,287 km in 2014 to 1,46,572 km. Operational access-controlled high-speed corridors and expressways increased from 93 km in 2014 to 3,052 km, and national highways with four or more lanes multiplied 2.6 times from 18,371 km to 48,568 km.
The Ministry of Road Transport and Highways has a capital expenditure allocation of Rs.2,94,167 crore for FY 2026-27, of which Rs.1,87,293 crore goes to the National Highways Authority of India. Planned upgrades include about 25,000 km of two-lane roads to four lanes at an estimated f10 lakh crore, and about 16,000 km of four-lane roads to six lanes at an estimated Rs.6 lakh crore, alongside high-speed corridors at an estimated Rs.50,655 crore. Ring roads and bypasses are planned for cities and towns with populations of five lakh and above, and around 26,000 km of high-speed expressways are targeted for award up to 2032-33.
Projects are delivered under build-operate-transfer, engineering-procurement-construction and hybrid annuity models. The first two of these require the developer to maintain the road, with concessions running 15 to 20 years and 15 years respectively, while engineering-procurement-construction contracts carry a defined maintenance period of up to five years. Under Bharatmala Pariyojana, the engineering-procurement-construction route accounts for an awarded length of 14,748 km at a total capital cost of Rs.4,06,024 crore, and the hybrid annuity model for 11,269 km at Rs.4,36,522 crore.
Water
At the launch of the Jal Jeevan Mission, 3.23 crore rural households had tap water connections; a further 12.58 crore have been connected since, taking coverage to about 15.81 crore of the countrys roughly 19.36 crore rural households, or about 82%. The extended phase focuses on infrastructure quality and on the operation and maintenance of rural piped water supply schemes through community participation.
The Budget Estimate for FY 2026-27 is Rs.67,670 crore, and the Cabinet has approved a total outlay of Rs.8.69 lakh crore including central assistance of Rs.3.59 lakh crore, with the target of tap water for every rural household by December 2028. Urban water and wastewater investment continues in parallel through the national urban rejuvenation programme.
The defining feature of this segment for contractors is that construction contracts increasingly carry a ten- year operation and maintenance obligation, so revenue accrues over a long tail after schemes are commissioned.
2.4 Mining, Metals and Minerals
Indias large reserves of coal, iron ore and bauxite have made the country largely self-sufficient in bulk minerals. Mining adds value to the raw material inputs required for steel and aluminium production, while coal remains a key energy source underpinning nearly 75% of electricity supply. The National Monetisation Pipeline has opened mining, historically dominated by government entities, to greater private participation, and rising privatisation across iron ore, bauxite and coal is creating opportunity both in mining operations and in mine-side facilities.
India produced about 1,042.90 million tonnes of coal on a provisional basis in FY 2025-26, against about 1,039.62 million tonnes in FY 2024-25. Coal demand is expected to reach about 1.5 billion tonnes by 2030, consistent with coal-based generation capacity rising to 291 GW by 2031-32 as set out in the Indian Power Sector section. Domestic steel production also depends on coking coal, where India remains import-dependent, with demand expected to reach about 161 million tonnes per annum by 2030. Meeting it requires investment in coking coal beneficiation and in First Mile Connectivity infrastructure, which reduces reliance on road haulage of minerals to power, steel and aluminium plants while improving evacuation efficiency and reducing losses.
The Governments Mine Developer and Operator model is central to resource development, encouraging private investment, technology adoption and operational efficiency, and is the main route to unlocking new reserves for the steel industry. NMDC, the leading iron ore producer, is expanding production capacity to 100 million tonnes per annum by 2030 with total capital investment of about Rs.70,000 crore. Planned expansion of iron ore and bauxite capacity by other major producers, together with new aluminium facilities in Odisha and Madhya Pradesh, extends the pipeline further. The Critical Minerals Mission is opening exploration and extraction of lithium, rare earth elements and copper alongside the established bulk minerals.
India is the worlds second-largest steel producer, with installed capacity of roughly 220 million tonnes per annum and on schedule to meet the National Steel Policy target of 300 million tonnes per annum by 2030. Meeting that target requires iron ore capacity of about 437 million tonnes per annum. Leading public and private producers are all expanding: JSW is moving from 31.9 to 62 million tonnes per annum by 2032, JSPL from 116 to 50, and SAIL from 20.63 to 35 by 2030-31, while ArcelorMittal plans a 10 million tonne greenfield plant near Visakhapatnam and Tata Steel is planning expansion at Neelachal. Expansion is split between greenfield and brownfield sites, with total investment in capacity augmentation estimated at Rs.3.5 to Rs.4 lakh crore. The Green Steel Initiative advanced during the year, with 94 producers across 15 states gaining green steel certification.
For construction and services contractors the addressable scope covers civil, structural and piping works and equipment installation for sinter and pellet plants, blast furnaces, steel melt shops and raw material handling systems, together with the captive generation that supports them.
3. Forward Markets
The markets below are not yet material to revenue but bear on how the Company positions itself over the plan period. Each rests on policy commitments already made and on capability the Company either holds or can extend from what it holds.
Nuclear. The SHANTI Act, 2025, described in the Indian Power Sector section, opens nuclear development to regulated private participation for the first time. For a contractor the accessible scope is the non-reactor work: civil and structural, turbine island erection, cooling water packages, balance of plant, and maintenance of operating stations. The Company is executing civil works for the 1,400 MW Kaiga project, which establishes both the qualification and working experience of the quality and safety regime the segment demands.
Energy storage. Against the storage build-out mentioned in the Indian Power Sector section, pumped storage carries substantial civil and electromechanical content - powerhouse, surge shaft and dam works, and turbine and generator erection - drawing on the same heavy- lift and heavy-civil base as thermal construction. Battery storage is shifting from a component of hybrid tenders to standalone procurement, and the Company is evaluating it alongside its renewable execution work.
Coal gasification. Converting coal thermochemically into synthesis gas supports energy self-sufficiency in a country dependent on external sources for 88% of crude oil and 50 to 55% of natural gas, while holding the worlds fifth-largest coal reserves. Adapting the technology to the high ash content of Indian coal took years, which is why commercialisation has been slow. The national mission targets 100 million tonnes per annum by 2030 with about Rs.4 lakh crore of investment supported by a Rs.37,500 crore promotion scheme. Projects are mine- side, placing them adjacent to the Companys mining and material handling work, and technology tie-ups are in place to qualify for the first wave.
Two further markets sit at an earlier stage. The National Green Hydrogen Mission targets 5 million metric tonnes of annual production by 2030, with the construction scope sitting in electrolyser halls, ammonia and methanol facilities and the utility infrastructure serving them. Data centre construction, driven by cloud adoption, data localisation and artificial intelligence workloads, resembles a utility island more than a conventional building, requiring large cooling water systems, redundant power infrastructure and often captive generation. In each case the Companys position is to monitor rather than commit, and to enter only where the work draws on capability already held.
4. Company Overview
Power Mech Projects Limited builds and maintains the physical infrastructure of Indias power and industrial economy: coal-based generating stations, the road, railway and metro networks that move people and freight, water systems, transmission and distribution networks, and the mines that supply the raw material for all of it. FY 2025-26 was its twenty-seventh year of operations.
Its position rests on execution. The Company has completed erection, testing and commissioning of approximately 84 GW of boiler, turbine, generator and balance of plant capacity, and provides long-term operation and maintenance services for about 36,246 MW across 26 power plants - around 16% of Indias installed coal-based capacity and the largest such position in the country. It has executed about 9,262 MW of installation and construction work internationally. More than 208 projects have been delivered for over 80 clients, supported by a workforce of about 40,000.
That base has carried the Company progressively further along the value chain: from mechanical erection into civil construction, from construction into long-term operation and maintenance, from package execution into turnkey engineering, procurement and construction, and from executing contracts for others into owning and operating long-life mining assets. Each move has been adjacent to capability already held rather than a departure from it.
The furthest of those moves, and the one that most changes the shape of the business, is mining. The Company holds two long-tenure opencast mine developer and operator (MDO) mandates - the Kotre Basantpur Pachmo block for Central Coalfields Limited and the Tasra block for SAIL - with tenors of 25 to 28 years and combined peak output of 9 MTPA. Together they account for Rs.39,253 crore of the closing order book. With the Tasra coking coal washery under development, taking the Company from extraction into beneficiation, Power Mech is positioning to become Indias largest private mine developer and operator in coking coal.
4.1 Developments in FY 2025-26
The operation and maintenance business recorded its highest order inflow to date, reinforcing the recurring revenue layer that gives the portfolio its stability. Four developments did something different - each opened a line of work the Company could not previously have taken on, and each rested on capability it already had.
• The Rs.2,550 crore balance of plant package for Stage- II of the Singareni Super Thermal Power Project moved the Company into principal contracting. It is the largest single order in its history and its first large-format turnkey engineering, procurement and construction mandate. The EPC Division section sets out the scope and what the award changes.
• Revenue generation commenced at the KBP mine from November 2025, marking the point at which the mining business moved from development into earning.
• The Company took its first renewable mandate, a 13.661 MW solar project in Bihar under the PM-KUSUM scheme.
• The operation and maintenance mandate for the Mumbai Monorail took the Company into urban mobility. The asset is new and so is the client base, but the work at the front line is not. Metro and monorail maintenance runs on the disciplines that built the power business:
• planned and breakdown maintenance of rotating and electrical equipment,
• shift-based deployment of a large technical workforce across a live asset,
• availability measured against contractual
performance standards, and
• shutdown planning around a system that cannot be taken offline at will.
A dedicated sub-unit was established during the year to serve the segment. The letter of intent for the Monorail was received in April 2026 (FY 2026-27) and operations will commence soon.
The water business is nearing the completion of its JJM connections and its focus now shifts progressively towards the ten-year operation and maintenance tail attached to schemes as they are commissioned.
4.2 Strategic Business Units (SBUs)
The Company operated through eight Strategic Business Units during FY 2025-26, each carrying profit and loss accountability, with portfolio risk managed above unit level.
1 Unit |
Scope |
Industrial Construction |
Mechanical erection, testing and commissioning of main plant and auxiliary equipment on coal-based units; material, coal, ash and bulk handling systems for steel, cement, minerals and port projects |
Infrastructure Construction |
Civil, structural and architectural work for thermal and nuclear stations; roads, railways, metro support, urban and industrial infrastructure, and irrigation |
Electrical, Transmission and Distribution |
Transmission lines, substations, distribution networks, smart grid systems and railway electrification from 33 kV to 400 kV |
International Operations |
Project execution and operation and maintenance across West Asia, Africa and South Asia |
Industrial Services |
Long-term operation and maintenance across power plants, industrial and process facilities, turbine and generator overhauling, and urban mobility |
EPC Division |
Turnkey balance of plant packages as principal contractor |
Water and Hydro Power |
Rural and urban water infrastructure with a long-term operation and maintenance layer; hydro electromechanical capability |
Mining and Renewable Energy |
Mine developer and operator mandates, first mile connectivity, and solar and storage development through a dedicated subsidiary |
The units are not independent businesses. On a single thermal station, the Company may hold the civil scope, the mechanical scope, the balance of plant contract and the subsequent operation and maintenance mandate, each through a different unit. That ability to hold multiple positions on one asset, and to carry a client from construction into a maintenance relationship lasting a decade or more, is what distinguishes the model from contracting on a project-by-project basis.
4.3 Order inflow and order book
New order inflows during FY 2025-26 totalled approximately Rs.7,210 crore. The closing order book stood at Rs.55,151 crore, comprising f15,898 crore in the standalone business and Rs.39,253 crore in the longer-horizon mining and renewables business.
The two components behave differently and should be read differently. The core standalone businesss order book converts over roughly two to three years and reflects the current construction and services cycle. The mining book runs over 25 to 28 years and reflects committed long-term operating mandates rather than work to be executed and closed. Between them they give the Company visibility of a kind unusual in construction: a near-term execution pipeline, and a multi-decade annuity underneath it.
5. Business Segments
The eight SBUs are set out below. Sector conditions established in the industry sections above are cross- referenced rather than restated.
One convention needs stating at the outset. On a thermal power project the Companys scope is delivered by two units: erection, testing and commissioning of main plant and auxiliary equipment sits with Industrial Construction, while civil, structural and architectural work for the same station sits with Infrastructure Construction. The two are reported separately below and frequently operate on the same site. Railway electrification, overhead equipment and signalling sit with the Electrical unit rather than with Infrastructure Construction.
5.1 Industrial Construction Overview
Industrial Construction delivers mechanical erection, testing and commissioning across two verticals. The power vertical covers main plant and auxiliary equipment on coal-based units; the non-power vertical covers material, coal, ash and bulk handling systems for steel, cement, minerals and port projects.
Power-side capability spans boilers from subcritical to ultra-supercritical, high, intermediate and low pressure turbines and generators, electrostatic precipitators, flue-gas ducts and rotating equipment, together with auxiliary and balance of plant systems covering ash handling, fuel, oil and water systems, cooling towers, compressors, piping and deaerators. The unit handles testing and commissioning in-house, including hydro-testing, vibration analysis, trial runs and performance guarantee runs conducted with the equipment supplier. Throughput is around 2,500 MW a year, supported by a heavy-lift crane fleet, strand jacks and non-destructive testing facilities. The 84 GW track record sits largely with this unit.
The non-power vertical covers coal handling plants including stackers, reclaimers, crushers, feeders, conveyors and silos; ash handling in dense and lean phase configurations; ore and bulk handling for iron ore, limestone, alumina and clinker; overland and pipe conveyor systems; and industrial piping in carbon steel, stainless steel and alloy. An in-house fabrication shop supports the work, much of which takes place during live plant shutdowns, where speed rather than scale is the constraint.
Demand follows the coal-based capacity addition mentioned in the Indian Power Sector overview, but volume is not the only change. Owners are paying for schedule certainty and for a single accountable party on the mechanical island, which favours contractors able to take the full scope rather than individual packages. On the non-power side, the steel capacity build-out and rising coal production described above in the Mining, Metals and Minerals section are driving handling system demand at plant gate, with port mechanisation opening a second corridor.
The unit secured erection, testing and commissioning of the boiler, turbine and generator, critical piping, electrostatic precipitators and other auxiliaries for two Adani projects during the year: 2*800 MW at Mirzapur in Uttar Pradesh at f515 crore, and 2*800 MW at Mahan Phase-III in Madhya Pradesh at f490 crore. It also secured part works for the power cycle and circulating water piping on Unit-2 of the 2*660 MW Udangudi project at f18.5 crore, and erection of the conveying system and associated structures for a coal handling plant at Raipur at f30 crore.
In the non-power vertical, structural and equipment installation works worth about f450 crore were completed at JSPL Angul and at JSWs Dolvi and Ballari plants, drawing on the same fabrication, erection and piping base as the power work.
Outlook
The coal-based addition set out in the Indian Power Sector overview defines the near-term opportunity. Prospects under evaluation include erection, testing and commissioning packages in Bihar, Chhattisgarh and West Bengal, with award decisions expected during FY 2026-27.
Three directions extend the mechanical franchise. Nuclear island mechanical work opens under the SHANTI Act, 2025, with brownfield revitalisation, greenfield builds and small modular reactor packages all in scope. Brownfield life extension and renovation across the ageing 500 MW fleet covers boiler pressure part replacement, turbine overhauls and control system upgrades. Pumped storage powerhouse erection is a direct extension of existing heavy-lift capability.
For the non-power vertical, the steel capacity expansion, port mechanisation under Sagarmala, and handling systems for commercially auctioned coal blocks form the addressable pipeline.
5.2 Infrastructure Construction Overview
Infrastructure Construction delivers civil, structural and architectural work across two verticals. The power vertical covers thermal and nuclear stations; the nonpower vertical covers roads, railways, metro, buildings, urban and industrial infrastructure, and irrigation.
Power-side scope covers main plant civil, including boiler foundations, bed plates, turbine generator decks, control room basements and structural columns; balance of plant civil, including cooling towers, pump houses, coal and ash handling civil, chimneys, switchyards and water systems; and structural steel, including supply, fabrication and erection, prefabricated erection, pipe racks and cable trenches. The unit entered nuclear civil construction with the award of civil works for the 1,400 MW Kaiga project in FY 2024-25, covering containment auxiliary structures and balance of plant civil, and is building experience of the quality and safety regime that segment requires. On-site batching plants and project-level scheduling and quality systems support execution.
Non-Power Scope covers two, four, and six-laning of National Highways, bridges, and flyovers under Hybrid Annuity Model (HAM) and Engineering, Procurement and Construction (EPC) contracts; new Broad Gauge railway lines, doubling and quadrupling of existing railway lines, Road Under Bridges (RUBs), Road Over Bridges (ROBs), wagon workshops, depots, yards, and formation works; metro depot-cum-workshops, stations, and associated support structures; government buildings, medical colleges, and urban utility infrastructure; as well as canals, saddle dams, and distribution networks executed on EPC and turnkey bases.
Civil work is the pacing item on a power project. Foundation-to-commissioning readiness governs when boiler and turbine erection can begin, which is why owners increasingly award civil and mechanical to contractors able to coordinate across both. On the nonpower side, the railway and road programmes mentioned in the Infrastructure Sector overview frame a build-out running well beyond the current plan period.
The unit secured civil work for the integrated township at the 5*800 MW Yadadri Thermal Power Station in Telangana at Rs.972 crore, covering residential quarters, hospital, school, club house, commercial and sports facilities, site levelling, roads, drains, water infrastructure, MEP and compound works. It also secured civil, architectural and structural steel work for the main plant area at Mahan Phase-III in Madhya Pradesh at Rs.371 crore.
The unit is executing railway works valued at approximately Rs.2,500 crore across eight states, comprising new lines, formation works and workshops. Metro and depot works account for a further Rs. 1,750 crore across nine projects, primarily maintenance depots and workshops, together with new lines and foot overbridges. Four road projects nearly worth Rs.2,650 crore are under execution, covering national highways and bypass works in Telangana, Karnataka, Mizoram and Jharkhand.
The Rs.425 crore metro depot at Challaghatta for Bangalore Metro Rail Corporation is substantially complete and stands as the reference for the depot scope now coming up across the newer city networks.
Outlook
Power civil prospects under evaluation include main plant area civil for 2*800 MW projects in West Bengal and Assam, and for 3*800 MW and 2*660 MW projects in Telangana and Odisha. Nuclear civil should open further under the SHANTI Act, 2025, with containment auxiliary and balance of plant civil the addressable scope.
On the non-power side, the identified pipeline covers a new broad gauge railway line in Odisha, structural work for a steel plant package in West Bengal, and a six-lane access controlled expressway package in Telangana under the hybrid annuity model. Beyond these, the dedicated freight corridor programme, metro expansion across the cities now entering construction, and the industrial corridor nodes provide multi-year civil demand. Pumped storage civil, covering powerhouse, surge shaft and dam work, is a natural extension of the heavy civil base.
5.3 Electrical, Transmission and Distribution Overview
The Electrical unit delivers engineering, procurement and construction of transmission lines, substations, distribution networks, smart grid systems and railway electrification, spanning 33 kV distribution to 400 kV transmission. Capability covers survey, foundation, tower erection and stringing; air-insulated and gas-insulated substations up to 400 kV with transformers, switchgear and control panels; high and low tension distribution lines, pole erection and distribution transformer installation; supervisory control and data acquisition systems, ring main units, advanced metering and feeder automation; and 25 kV overhead equipment, traction substations and signalling and telecommunication work for railway electrification.
The unit has completed works like 750 km of railway electrification in Rajasthan ( Rs.332 crore), 91 km for RITES ( Rs.69 crore), 777 km of 11 kV distribution lines in Bihar and 95 km of 132/220 kV high tension lines in Assam.
Operational Milestones
FY 2025-26 was the year of execution. Five contracts are in progress covering railway electrification, substations and 11 kV distribution lines, with total contract value of Rs.896 crore and balance work of Rs.606 crore at the close of the year.
Outlook
The units focus is on completing the current portfolio and on improving execution efficiency and returns before committing to fresh capacity. It is approaching bidding selectively, as margins in the segment remain under competitive pressure. The forward opportunity sits in renewable evacuation and pooling substations, in distribution network upgrades, and in railway overhead equipment contracts, where the Company already holds a delivery record.
5.4 International Operations Overview
International Operations delivers project execution and operation and maintenance services across West Asia, Africa and South Asia, working through branches, subsidiaries and joint ventures in Saudi Arabia, Oman, Kuwait, the United Arab Emirates, Qatar, Bahrain, Bangladesh and Nigeria.
The Company entered international markets in 2000 and opened its first overseas office in Dubai in 2013. The portfolio then covered gas-based power, desalination, petrochemical and industrial construction, and hydro erection including the Punatsangchhu-I project in Bhutan. Focus has since shifted towards operation and maintenance, which carries better margins and replicates the long-term model already established domestically. Manpower-based deployment is converting into performance-linked contracts that are renewable and give steadier revenue.
Scope covers shutdown management, capital overhauls, repairs and specialist manpower supply, with over 1,500 specialists and skilled workers deployed. Standing mandates include maintenance of reverse osmosis plants in Abu Dhabi, the 2*660 MW Maitree coal-fired project in Bangladesh, and the captive power plant at the Dangote refinery in Nigeria, where completion of the 400 MW combined cycle plant led to a long-term operation and maintenance mandate valued at about Rs.339 crore, now being extended. Entities include GTA Power Mech Nigeria, Power Mech Projects Limited LLC in Oman and Power Mech Arabia Contracting Company.
International activity during the year remained anchored in recurring maintenance, shutdown and operation work, with 21 mandates secured totalling Rs.213 crore.
Work in the United Arab Emirates covered mechanical maintenance and specialist services for clients including NOMAC, the Dubai Electricity and Water Authority, Emirates Steel Arkan and Emirates Global Aluminium, alongside services for the Sharjah waste-to-energy facility. The unit secured mechanical maintenance for the boiler, turbine, generator, water system and offsite areas of the Maitree plant in Bangladesh, and refinery works in Nigeria including the residue fluid catalytic cracking unit. Further mandates covered plant maintenance in Qatar and inspection and repair work in Saudi Arabia.
Selective erection work continued alongside, consistent with the approach of pursuing overseas construction on a chosen basis while building the maintenance layer that carries the stronger margin and the more durable client relationships.
Outlook
The Company expects consistent expansion in overseas operation and maintenance, weighted towards longterm contracts rather than manpower deployment. The accessible thermal and gas-fired fleet across Saudi Arabia, the United Arab Emirates and Qatar is the primary corridor, with independent power producers and utilities in the region continuing to outsource maintenance on multi-year terms. Remote diagnostics and centralised dispatch are under evaluation as a means of serving dispersed sites without adding headcount in proportion.
Construction opportunity in the region should broaden as investment resumes across the oil-rich economies, opening scope in gas-based power and industrial facilities.
5.5 Industrial Services Overview
Industrial Services is the Companys operation and maintenance business and its largest annuity engine. It operates through four sub-units. The first covers long-term power plant contracts across thermal, gas, nuclear and renewable assets, including coal handling, ash handling and water treatment systems. The second covers industrial and process plant work in refineries, cement, steel and petrochemical facilities, spanning boilers, chillers, compressors and electrical and instrumentation systems. The third covers turbine and generator overhauling across the fleets of NTPC, BHEL, Adani, Reliance, Siemens and the state electricity boards.
The fourth, established during FY 2025-26, covers urban mobility, serving metro and monorail systems. All four draw on shared workforce and systems.
Of the 36,246 MW under contract, about 7,541 MW sits under comprehensive contracts governed by key performance indicators, about 14,380 MW under semi-comprehensive contracts and the balance under customer-specific arrangements. Long-term contracts are predominantly with the private sector, covering 29,296 MW across 20 plants, while the government sector accounts for 6,950 MW across six plants. The business is supported by about 18,000 people across skill sets, including around 3,600 engineers and supervisors, and by maintenance management and diagnostic systems together with inhouse training facilities.
Customers increasingly ask for end-to-end plant operation governed by defined performance indicators, alongside comprehensive maintenance including annual capital overhauls. Long-term contracts are more prevalent in the private sector, consistent with international practice, though government utilities have moved in the same direction over recent years to improve operational efficiency. Power generation capacity addition if 8-to- 10 GW a year is set to extend the addressable base, and metro expansion opens a second corridor with a different set of requirements.
The unit secured 23 mandates during the year, representing order inflow of f1,891 crore - its highest to date.
The largest was a five-year contract for the 5*660 MW Adani plant at Tiroda, covering the boiler, turbine and generator, balance of plant, ash and coal handling, and environment and horticulture systems, at about Rs.710 crore. Operation and maintenance of SJVNs 2*660 MW Buxar plant was secured at about Rs.498 crore, and of Hindustan Zincs 91.5 MW captive plant at Zawar at about Rs.109 crore. A steady stream of turbine and generator overhauls, boiler overhauls and contract renewals across the country supported these.
Subsequent to the year end, the Company received the letter of intent for long-term operation and maintenance of the Mumbai Monorail, covering 19.5 km over five years at a contract value of about Rs.300 crore. The letter of intent is dated April 2026 and falls in FY 2026-27, so the mandate is not included in the order inflow reported above; operations commence during the current year. It is the first mandate under the urban mobility subunit and marks the Companys entry into urban rail operation and maintenance, a segment where operators are moving towards outsourced maintenance and where the barrier to entry is the operating record rather than the technical capability.
Turning to revenue rather than inflow, international operation and maintenance revenue grew to about Rs.315 crore, or 167% of the segments total revenue of Rs.1,881 crore for the year.
Outlook
The identified pipeline for FY 2026-27 exceeds Rs.5,000 crore, the largest of any unit, concentrated in long-term contracts for captive and independent power producer fleets in Chhattisgarh, Gujarat, Odisha, Telangana, Maharashtra and Uttar Pradesh, together with renewals across the existing portfolio.
Three directions extend the base. Nuclear operation and maintenance becomes accessible under the SHANTI Act, 2025. Urban mobility scales from the Mumbai mandate towards the metro networks now expanding across the larger cities, where the barrier to entry is the operating record rather than the capability. Process industry outsourcing continues to shift at the major steel and cement producers. Beyond these, maintenance of solar, wind and battery storage assets is an emerging requirement that pairs naturally with the Companys renewable execution work.
5.6 EPC Division Overview
The EPC Division delivers balance of plant packages on a turnkey basis, taking single-point responsibility for engineering, procurement and construction. It was formed to move the Company from package execution under a lead contractor to principal contracting in its own right, drawing on the erection, civil and commissioning capability built up across the other units.
The scope of the division encompasses major Balance of Plant systems for thermal power projects, including:
• cooling towers based on both induced-draft and natural-draft technologies
• coal, biomass and ash handling systems
• Pre-Treatment (PT), Demineralization (DM), Circulating Water (CW), Effluent Treatment Plant (ETP), Sewage Treatment Plant (STP) water systems
• fire protection and detection systems, and
• air-conditioning and ventilation systems.
The division offers integrated project execution capabilities covering civil, mechanical, electrical, control, and instrumentation works under a single umbrella, supported by in-house fabrication capabilities and an established and reliable vendor network. This integrated approach enables effective coordination across disciplines, optimises project execution, and ensures timely delivery of complex BOP packages.
The division has also established strong execution credentials through its successful involvement in major power projects. Since FY 2022-23, it has been executing the Flue Gas Desulphurisation (FGD) package for the
2*660 MW Udupi Thermal Power Plant through Adani Power. In addition, the division is executing the Induced Draft Cooling Tower package for the 2*800 MW Koderma project of DVC through BHEL PSER.
Power and industrial clients are moving from package- based contracting towards turnkey delivery, and the reason is schedule risk. On a supercritical unit the balance of plant sits on the critical path, and an owner running multiple packages carries the interface risk between them. A turnkey contract transfers that risk to the contractor and gives the owner one accountable party for cost and schedule. Qualification is the barrier: owners require demonstrated principal contractor experience on comparable capacity, which limits the field to contractors with engineering depth, procurement reach and a record of multi-package integration.
The division secured the balance of plant EPC package for Stage-II of the Singareni Super Thermal Power Project in Telangana, a 1*800 MW unit, awarded by BHEL at Rs.2,550 crore.
The scope covers water systems (PT, DM, CW, CPU, ETP, and STP), coal handling plant and the ash handling plant, cooling tower, fire protection and detection, air conditioning and ventilation along with associated civil and structural work. The Company carries singlepoint accountability for engineering, for supply chain integration of the major mechanical and electrical packages, and for construction, rather than executing a smaller package under a lead contractor.
The award also changes what the Company can bid for. Balance of Plant on EPC (BOP) basis for an 800 MW unit is the qualification threshold most state and central tenders apply, and the mandate establishes that credential.
Outlook
The near-term order pipeline is well positioned around Balance of Plant (BOP) packages for state and central power-generating utilities, with a significant number of projects expected to be finalised over the next two years.
Beyond thermal BOP, two directions are under assessment. Utilities and material handling packages for steel plants draw on the same integration capability and follow the capacity expansion mentioned earlier in the Mining, Metals, and Minerals overview. BOP scope for small modular reactors under the Bharat SMR programme is a longer-dated prospect, opened by the private participation the SHANTI Act, 2025 permits, and one where balance of plant is the natural entry point for a contractor without reactor island experience.
The divisions priority for the year ahead is conversion. Singareni has to be executed to schedule, because a turnkey record is built on delivery rather than on award, and every subsequent bid will be assessed against it.
5.7 Water and Hydro Power Overview
The Water and Hydro Power unit delivers rural and urban water infrastructure together with a long-term operation and maintenance layer, and holds electromechanical capability for hydro stations covering turbines, generators and station auxiliaries.
The Company entered the water segment following the opportunities identified in the 2019 National Infrastructure Pipeline, taking an order valued at about Rs.2,728 crore covering about 1,091 schemes across four districts of Uttar Pradesh and about 1,969 villages, comprising tubewells, water treatment plants, overhead tanks, distribution networks and household connections. The contract includes a ten-year operation and maintenance component valued at about Rs.700 crore, running on a scheme-by-scheme basis from completion of each scheme.
Operational Milestones
Work valued at about Rs.1,754 crore of the Rs.2,728 crore mandate had been completed as at 31 March 2026, with about 493 schemes commissioned and the remainder under execution. The ten-year operation and maintenance component has been under way since 2024 on completed schemes, with revenue accruing over ten years from the commissioning of each.
Outlook
With the revised budget allocation in place, the balance works are expected to complete in FY 2027-28. As schemes are handed over, the segments contribution shifts progressively from construction revenue to the operation and maintenance tail, which runs for ten years from each completion and provides recurring revenue well beyond the construction period.
5.8 Mining and Renewable Energy Overview
The Mining and Renewable Energy unit covers two verticals. The mining vertical operates long-tenure mine developer and operator mandates; the renewable vertical develops, executes and operates solar and battery energy storage projects through a dedicated subsidiary.
Mining scope runs from mine development and overburden removal through extraction, washery operations and rehabilitation and resettlement obligations, executed through project-specific vehicles that embed operational accountability alongside longterm revenue visibility. Allied work covers crushing, screening, stockyard management and the rail and road dispatch interface. The unit also undertakes sand and river-bed mineral extraction in Madhya Pradesh and Uttarakhand. Alongside the mine developer and operator mandates, the Company executes first mile connectivity works with technology partners.
The renewable vertical delivers engineering, procurement and construction together with asset ownership on build-own-operate terms, covering solar, battery energy storage and firm dispatchable renewable configurations that combine generation with storage.
On the renewable side, the frontier has moved from standalone solar and wind towards firm and dispatchable configurations and standalone storage, which are the architectures that address intermittency at grid scale.
Operational Milestones
The defining development of the year was the commencement of revenue generation at the KBP mine from November 2025, marking the mining verticals shift from development to earning. The Tasra mine continued in steady-state execution. The two mandates, held for Central Coalfields Limited and SAIL respectively, carry tenors of 25 to 28 years, anchor the mining and renewables order book of Rs.39,253 crore as at 31 March 2026, and can reach combined peak output of 9 MTPA.
In first mile connectivity, the 9 MTPA Kurmitar iron ore facility, delivered with Thyssenkrupp for Adani as mine developer, is nearing completion. The first phase at the 15 MTPA Talabira coal handling facility will supply coal to NLCs 2,400 MW Talabira power project.
To extend forward integration and strengthen the margin profile, the Company is developing a coking coal washery at Tasra, moving the mining vertical from extraction into beneficiation.
The renewable vertical established its first position with a mandate valued at approximately Rs.159 crore, covering three grid-connected plants totalling 13661 MW in Bihar under the PM-KUSUM scheme, with power supplied to the State distribution utilities under a mandated 25-year power purchase agreement.
Outlook
The Company remains focused on scaling mine developer and operator capacity by around 15 MTPA over the next decade as it evolves into an integrated resource and services provider. Government monetisation policy and greater private participation continue to open further mandates, with medium-term opportunity in iron ore linked to the steel capacity target, and in critical mineral corridors under the Critical Minerals Mission. Managing these assets over the long term strengthens both revenue and margin, supported by escalation provisions, and allows execution work on such mandates to be paired with the operation and maintenance scope the Company already handles. Extending from extraction into washing and dispatch integration lengthens the margin capture on each mandate.
In renewables, the Company continues to pursue opportunities selectively, where they align with its capabilities and margin thresholds, so that growth is achieved alongside margin improvement. Firm dispatchable configurations and standalone storage are the segments under closest evaluation, given the tariff structures they command and the procurement shift now under way. Pairing in-house execution during the investment phase with in-house operation and maintenance after commissioning creates a durable model, and the Company aspires to more such contracts.
6. Key Focus Areas
The following priorities guide the deployment of capital, capacity and management attention over the plan period. Each builds on capability the Company already holds.
Focus area |
Description |
Business consolidation |
Consolidating core business performance through full backward and forward integration. |
Infrastructure EPC opportunities |
Identifying feasible and rewarding engineering, procurement and construction contracts across infrastructure segments, including railways, water projects, roads, urban infrastructure development and energy. |
Non-power sector execution |
Enhancing project execution capability by extending engineering, procurement and construction capacity into non-power sectors, including mining and metals, developing the human resource base and improving asset utilisation for timely project completion. |
Operation and maintenance expansion |
Expanding the operation and maintenance business with a focus on utility and captive thermal power plants, integrating the spare parts business, scaling international operations and extending into the non-power sector, while raising the share of key performance indicator based contracts for higher value addition. |
Engineering and project solutions |
Entering value-added services to move the Company towards a total service provider position by strengthening engineering and project-based solutions. |
Digital and risk management |
Implementing digital initiatives directed at risk management and productivity improvement. |
Overseas consolidation |
Pursuing geographic expansion with a focus on the export space, and consolidating overseas business operations. |
7. Strengths, Opportunities and Threats
7.1 Strengths
Strength |
Description |
Multi-sector service coverage |
A comprehensive service provider operating across both power and non-power sectors. |
Market-leading position in operation and maintenance |
The largest operation and maintenance service provider in the country, backed by full forward and backward integration. |
Long-tenure order book |
An order book reinforced by long-term mine developer and operator mandates, giving revenue visibility over decades rather than project cycles. |
Extensive heavy machinery base |
A substantial owned asset base, including more than 300 cranes together with a wide range of civil construction equipment. |
Global project footprint |
Demonstrated capability in managing and executing industrial projects internationally across West Asia, Africa and South Asia. |
Long-standing client relationships |
Established relationships with leading original equipment manufacturers, engineering, procurement and construction companies and utilities. |
Depth of management and execution |
Operational execution led by an experienced management team with long tenure in the sector. |
Stable financial profile |
A sound financial position, with margins sustained through the cycle and moderate gearing. |
Skilled and diverse workforce |
Access to a large pool of technical talent with relevant industrial expertise across a wide range of trades and disciplines. |
7.2 Opportunities
Opportunity |
Description |
Balance of plant packages |
The Singareni balance of plant mandate establishes the qualification most state and central tenders apply for an 800 MW unit, and the coal-based capacity addition set out in Section 2.1 generates a continuing flow of comparable packages. |
Mining and mine developer and operator contracts |
Growing participation in mine developer and operator mandates offers long-term growth in mining services, with the steel capacity expansion described in Section 2.4 opening further iron ore and mineral opportunities. |
Urban rail operation and maintenance |
The Mumbai Monorail mandate opens entry into urban rail operation and maintenance, a segment where operators are increasingly outsourcing maintenance as metro networks expand across the larger cities. |
Subcontracting from principal contractors |
Recent power project awards to major engineering, procurement and construction contractors create direct subcontracting opportunities for civil, structural, mechanical and auxiliary works. |
International operation and maintenance |
Overseas markets continue to offer shutdown assignments, capital overhauls and longterm operation and maintenance contracts, particularly across the gas-fired fleet described in Section 2.2. |
Energy storage |
Battery energy storage systems and pumped storage projects allow the Company to participate in the grid stability requirement arising from the renewable build-out. |
Solar generation |
Entry into solar through the PM-KUSUM scheme in Bihar allows the Company to use central and state support to build decentralised generation for agricultural feeders, with a 25-year power purchase agreement attached. |
Infrastructure expansion |
Urban development, smart city programmes and the national infrastructure pipeline continue to generate civil construction and related service opportunities. |
Technology adoption |
Advanced construction technology and digital tools, including drone survey and condition- based maintenance, offer scope to improve project efficiency and reduce cost. |
7.3 Threats
Threat |
Description |
Delays in government fund allocation |
Receivables can remain outstanding where budgetary allocation to a government-funded programme is delayed, holding up certification and collection. This has been a feature of the water business during the year. |
Market competition |
The construction and maintenance sector has a large number of participants of varying scale, which can intensify competition and compress margins. |
Safety and reputational exposure |
Operating heavy machinery on complex sites carries inherent safety risk, and an incident or a compliance failure can give rise to legal consequences and reputational damage. |
Regulatory compliance |
Environmental and safety requirements continue to tighten, and changes can delay execution or add cost. |
Input cost and supply chain |
Geopolitical disruption can move steel, cement and other input prices sharply, while delivery of manufactured items can slip. Site access dependent on land availability and statutory clearances is a further constraint on schedule. |
Client concentration |
A significant share of revenue is drawn from a limited number of large clients and government entities, so a reduction in their capital programmes would have a disproportionate effect. |
8. Financial Review
Revenue from operations rose 15.81% to t6,061.57 crore, on execution across the industrial and infrastructure construction units and a higher contribution from operation and maintenance. Earnings before interest, tax depreciation and amortisation grew 15.58% to t750.29 crore, holding the margin broadly flat at 12.29% against 12.30%. Profit before tax rose 13.49% to t557.50 crore and profit after tax 18.45% to t411.68 crore, the wider gain at the post-tax level reflecting a lower effective tax charge.
Return on equity moderated to 15.49% from 16.26% and return on capital employed to 22.24% from 23.10%, in both cases because the equity and capital base expanded faster than earnings during a year of investment in the mining business. Book value per share rose 16.60% to t796.55 and earnings per share 11.49% to t115.12.
(Rs. in crore, except per share data and ratios)
1 Particulars |
FY 2025-26 | FY 2024-25 | Change |
Revenue |
6,061.57 | 5,234.14 | 15.81% |
ebitda |
750.29 | 649.16 | 15.58% |
EBITDA margin |
12.29% | 12.30% | -1 bps |
Profit before tax |
557.50 | 491.24 | 13.49% |
Profit after tax |
411.68 | 347.55 | 18.45% |
Return on equity |
15.49% | 16.26% | -4.74% |
Return on capital employed |
22.24% | 23.10% | -3.72% |
Book value per share (t) |
796.55 | 683.17 | 16.60% |
Earnings per share (t) |
115.12 | 103.26 | 11.49% |
Source: Company financial statements.
8.1 Key Financial Ratios
Pursuant to Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule V Part B(1), details of key financial ratios are given below.
1 Key financial ratio |
FY 2025-26 | FY 2024-25 | Change |
Debtors turnover ratio |
4.02 | 4.17 | -3.64% |
Inventory turnover ratio |
3.76 | 5.21 | -27.89% |
Interest coverage ratio |
5.84 | 5.98 | -2.23% |
Current ratio |
1.71 | 1.80 | -5.01% |
Debt equity ratio |
0.26 | 0.33 | -21.21% |
Operating profit margin |
12.24 | 12.25 | -0.08% |
Net profit margin |
6.80% | 6.66% | 2.21% |
Debtors turnover (days) |
93 | 102 | -8.62% |
Inventory turnover (days) |
15.93 | 13.82 | 15.31% |
Note: the movement in inventory turnover reflects higher average inventory held during the year. No other ratio moved by 25% or more.
9. Risk Management
The Company operates a risk management framework that identifies exposures across its businesses and geographies, assesses their likely impact and assigns mitigation to the units accountable for them. The principal risks and the Companys response to each are set out below.
Risk |
Description |
Impact |
Mitigation |
Economic |
An economic slowdown may reduce the flow of new projects, particularly in capital-intensive sectors. | Reduced revenue and a lower volume of work in hand. | Diversify across sectors and geographies so that no single demand cycle governs the order book, and maintain a recurring services layer that is less sensitive to the investment cycle. |
Competition |
A large number of domestic and international contractors offer comparable services. | Compressed margins and a lower probability of conversion on competitively bid work. | Maintain long-term client relationships, offer specialised services where the field is narrower, and bid selectively rather than on volume. |
Regulatory |
Changes to regulation, safety legislation or environmental policy can alter project requirements mid-execution. | Delays, financial penalties or suspension of work. | Track regulatory developments continuously, maintain compliance systems at project level, and engage early with authorities on approvals. |
Input cost and supply chain |
Prices of steel, cement and other inputs fluctuate, and delivery of manufactured items can slip. | Higher project cost and margin erosion on fixed- price work. | Use contracts incorporating price adjustment clauses, secure long-term supply arrangements, and hedge exposures where instruments are available. |
Operational |
Weather, site access, land availability and clearance delays can disrupt execution. | Schedule slippage, cost escalation and exposure to liquidated damages. | Plan with contingency, maintain project controls and scheduling systems, and hold safety and quality standards across sites. |
Client concentration |
A significant share of revenue is drawn from a limited number of large clients and government entities. | A material reduction in their capital programmes would affect revenue disproportionately. | Broaden the client base across private enterprises and new sectors, and lengthen contract tenors so that revenue is less dependent on annual award cycles. |
International operations |
Overseas work carries political, currency and jurisdictional exposure. | Unanticipated delays, cost escalation and translation effects on earnings. | Assess country risk before entering a market, operate through in-country entities and joint ventures, and hedge currency exposure where practical. |
Safety and reputation |
Heavy machinery, working at height and live plant environments carry inherent safety risk. | Injury, legal consequence, contractual penalty and reputational damage. | Maintain safety management systems, training and audit at every site, with incident reporting and corrective action tracked to closure. |
Technology |
Slow adoption of modern construction methods and digital tools erodes competitiveness. | Longer schedules, higher cost and weaker position in qualification. | Invest in plant, digital project controls and condition-based maintenance, and train the workforce on new methods. |
Manpower |
Skilled personnel are difficult to source in some trades, and industrial relations can disrupt work. | Delays and quality shortfalls where crews are short. | Build a stable core workforce through training and progression, supplemented by planned outsourcing, and maintain constructive industrial relations. |
10. Human Resources
The Companys business is people-intensive. Executing complex projects and operating power plants under performance-linked contracts depends on holding a large workforce of varied skills, matched by supervisors and engineers with the experience to direct it. Human resource practice is built around that requirement.
The Company employs about 40,000 people - the operation and maintenance business accounts for about 18,000, project execution and construction for about 20,500, and over 1,500 technical personnel are deployed on overseas projects. The complement of engineers and supervisors is about 3,600. Manpower planning is need- based and deployment is matched to the stage each
project has reached, with a focused recruitment plan aligned to business requirements and outsourcing used where it is the more efficient route.
Talent acquisition is directed at professionals whose capabilities and aspirations align with the Companys direction, supported by structured induction. The Company invests in its people through technical training, statutory and safety training, functional workshops, behavioural interventions and continuous learning platforms. Leadership development runs through the Young Leaders Development Programme and the Senior Leaders Development Programme, which together build the succession pipeline across the organisation.
Capability building is directed at the competencies the business needs next. Alongside domain certification, project management, and digital and analytical skills, specialised programmes support the newer verticals - urban rail operation and maintenance, renewable energy and infrastructure - so that entry into an adjacent segment is matched by the capability to serve it.
The performance management framework sets clear goals, provides regular feedback and links recognition to merit. Compensation is competitive and benefits comprehensive, with incentives directed at operational excellence and client service. The Company promotes open communication, collaboration and diversity across its workforce, and continues to encourage greater participation of women professionals across its operations.
Work continues on strengthening the function itself through digitalisation of human resource processes, competency-based talent management, succession planning, structured career progression, workforce planning and people analytics.
11. Internal Control System
The Company maintains a system of internal controls designed to safeguard its assets, ensure their proper use, and ensure that financial transactions are authorised, recorded and reported correctly. Accurate financial reporting and the prevention and detection of fraud are central to its design.
The Internal Controls and Criteria Team maintains documented procedures and approval mechanisms, with checks applied from the initiation of a task and throughout its progress so that material changes are tracked. The team also reviews whether key processes carry sufficient control in their design.
Independent internal auditors review the Companys operations and procedures in accordance with SEBI requirements. The statutory auditors have reviewed the financial statements, including internal financial controls over financial reporting, in accordance with Section 143 of the Companies Act, 2013, and their findings form part of the audit report accompanying the financial statements.
12. Cautionary Statement
Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.
Factors that could cause such a difference include economic conditions affecting demand and supply, price conditions in the domestic and overseas markets in which the Company operates, competitive pressure in those markets, changes in government regulation, tax laws and other statutes, the availability and cost of inputs and finance, and incidental factors beyond the Companys control.
The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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