Power Mech Projects Secures ₹549.37 Crore Order

Power Mech Projects has won a ₹549.37 crore operation and maintenance contract from Moxie Power Generation Limited, an Adani Group company.

The contract covers complete O&M services for Moxie's 2×600-MW Tuticorin Thermal Power Plant in Tamil Nadu, giving Power Mech responsibility for a total generation capacity of 1,200 MW.

The Hyderabad-based engineering and infrastructure services company disclosed the order to the stock exchanges on September 29, 2026.

The latest contract adds another sizeable power-sector assignment to Power Mech's growing portfolio of long-duration O&M projects.

Five-Year Contract Begins October 1

The contract will run for 60 months, beginning October 1, 2026, and ending September 30, 2031.

Its total value of ₹549.37 crore includes applicable taxes and duties except Goods and Services Tax.

The five-year tenure provides Power Mech with a relatively long execution period, supporting revenue visibility from its O&M business across multiple financial years.

Long-term O&M agreements can also provide greater continuity than shorter construction assignments because services are delivered throughout the operating life of the contracted facility.

Contract Covers 1,200-MW Tuticorin Thermal Power Plant

The Tuticorin facility consists of two coal-based generating units with capacity of 600 MW each.

Located in Tamil Nadu's Thoothukudi district, the plant has total installed capacity of 1,200 MW.

Under the new mandate, Power Mech will provide complete operation and maintenance services for the facility.

O&M work at large thermal power stations can include plant operations, preventive and corrective maintenance, equipment monitoring, troubleshooting and support for maintaining generating-unit availability.

For Power Mech, the contract fits directly within one of its established core service areas.

Moxie Power Generation Is Part of Adani Group

The contract has been awarded by Moxie Power Generation Limited, which operates the Tuticorin thermal power facility.

The company was formerly known as Coastal Energen and subsequently became part of a structure involving Adani Power and Dickey Alternative Investment Trust following an acquisition process.

Moxie Power Generation has also secured a five-year arrangement to supply 558 MW of electricity to Tamil Nadu Power Distribution Corporation.

The power-supply arrangement commenced from April 1, 2026, strengthening the plant's medium-term offtake visibility.

Power Mech Says Transaction Is Not Related-Party Deal

Power Mech Projects has clarified that the latest contract does not constitute a related-party transaction.

The company also stated that its promoters, promoter group and group companies do not have an interest in the entity that awarded the order.

Such disclosures are required for material contracts and help investors assess the commercial relationship between the listed company and the customer.

The order has been classified as a domestic contract.

O&M Is an Established Power Mech Business

Operation and maintenance has been a major business vertical for Power Mech Projects since the company's early development.

Its service portfolio includes plant operation and annual maintenance, capital repairs, upgrades and retrofits, rebuilding, plant relocation, troubleshooting and comprehensive O&M.

The company has built experience across thermal and other power-generation facilities while working with private independent power producers and public-sector utilities.

This operating history enables Power Mech to compete for long-duration service contracts involving large generating units.

Latest Order Follows Other Major O&M Wins

The Tuticorin contract follows additional O&M orders secured by Power Mech during September.

The company recently received a ₹279.20 crore contract from Telangana Power Generation Corporation for comprehensive operation and maintenance work at the Yadadri Thermal Power Station.

It has also secured a contract valued at around ₹970 crore from Vedanta Power for end-to-end O&M services at a 2×600-MW thermal power facility in Chhattisgarh.

Together, these orders reinforce Power Mech's positioning in long-term power-plant operations and maintenance.

Long-Term O&M Contracts Improve Revenue Visibility

O&M contracts have different financial characteristics from conventional engineering, procurement and construction assignments.

EPC projects can generate substantial revenue during construction but eventually conclude once facilities are completed and handed over.

Operation and maintenance contracts can generate recurring revenue over several years.

The 60-month Tuticorin agreement therefore provides Power Mech with an extended execution opportunity rather than a one-time project.

A growing base of long-duration O&M contracts can help diversify the company's revenue mix alongside construction and infrastructure projects.

Tuticorin Plant Strengthens Tamil Nadu Power Supply

The Tuticorin facility represents a significant generation asset within Tamil Nadu's electricity system.

Moxie Power's agreement to supply 558 MW to Tamil Nadu Power Distribution Corporation for five years provides a contracted route for a substantial portion of the plant's output.

Reliable operation and maintenance are particularly important for thermal power plants operating under medium- and long-term power-supply commitments.

Plant availability, equipment reliability and maintenance efficiency can directly influence the ability to meet scheduled electricity supply requirements.

The Power Mech contract therefore covers an operationally important part of the facility's performance.

Power Mech Expands Presence Across India's Power Infrastructure

Power Mech Projects provides engineering and construction services across power, infrastructure and industrial projects.

Its capabilities include erection, testing and commissioning of boilers, turbines and generators, balance-of-plant work, civil construction and O&M services.

The company has increasingly built a portfolio combining project construction with recurring maintenance contracts.

India's continuing requirement for dependable electricity generation, along with the need to maintain existing thermal assets efficiently, creates opportunities for specialised O&M companies.

Even as renewable generation expands, large thermal power plants continue to play an important role in supplying dispatchable electricity and supporting grid reliability.

What the Contract Means for Power Mech Projects

The ₹549.37 crore Tuticorin contract strengthens Power Mech's order pipeline while adding another large generating facility to its O&M portfolio.

Because the mandate runs until September 2031, it provides visibility over an extended period.

The order also expands Power Mech's commercial relationship with a major private power-sector group.

Execution quality will remain important because O&M contracts typically depend on maintaining plant performance, availability and reliability over multiple years.

For investors, the contract adds to the company's recent sequence of power-sector order wins and reinforces the contribution of recurring O&M services to its broader business model.

Conclusion

Power Mech Projects' ₹549.37 crore contract from Moxie Power Generation represents another significant addition to the company's operation and maintenance portfolio.

The five-year mandate covers complete O&M services for the Adani Group company's 1,200-MW Tuticorin thermal power plant and will run from October 1, 2026, through September 30, 2031.

Coming alongside other recent thermal-power O&M orders, the Tuticorin contract strengthens Power Mech's multi-year revenue visibility and reinforces its position as a specialised service provider to India's power-generation industry.