POWERMECHPower Mech Projects Ltd.
Power Mech Projects wins ₹492 crore Rabigh 2 power plant contract in Saudi Arabia
- Order win
- power plant construction
Reviewed byKeshav SehgalBlacklitt Research
Power Mech Projects (NSE: POWERMECH) said in a filing on 06 Nov 2026 that its Saudi subsidiary, Power Mech Arabia Contracting Company, has entered into a contract worth about ₹492 crore excluding taxes with a joint venture of ELSEWEDY Electric and SINOHYDRO for the Rabigh 2 IPP Expansion Project.
Key highlights
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The contract in numbers
| Item | Detail |
|---|---|
| Awarded by | Joint venture of the Branch of ELSEWEDY ELECTRIC POWER SYSTEMS PROJECTS and the Branch of SINOHYDRO CORPORATION LIMITED |
| Scope | Installation of three Heat Recovery Steam Generators, one Steam Turbine for Block 10, and Balance of Plant Combined Cycle Piping for Block 20 and Common, for Rabigh 2 IPP Expansion Project |
| Main work value | ₹386.87 crore excluding taxes (USD 40,982,353) |
| Optional work value | ₹105.13 crore excluding taxes (USD 11,136,756) |
| Aggregate value | ₹492 crore excluding taxes (USD 52,119,109) |
| Contract period | 20 months from 1 Jan 2027 |
| Nature and location | Erection; international |
Contract size and scope
The main work is valued at ₹386.87 crore excluding taxes, and an optional Block 10 balance of plant piping scope adds ₹105.13 crore, for an aggregate of about ₹492 crore. The company converted the USD amounts at ₹94.4 to the dollar, the RBI rate as on 5 Nov 2026.
The filing describes the work as erection for an international entity. The contract period is 20 months, effective from 1 Jan 2027.
Relation to the company's size
The main work of ₹386.87 crore is about 5.4% of the company's market value of ₹7,185 crore at the 5 Nov 2026 close, and the aggregate of ₹492 crore is about 6.8% of it. The company's latest reported quarter, Q1 FY27, showed consolidated total income of ₹1,632.36 crore.
What the contract means for Power Mech Projects' shareholders
It records the value as an estimate in rupees converted from dollars.
Not stated: the expected revenue or profit from the contract in future periods, the payment terms, the company's share of the joint venture, and why the subsidiary was chosen for the award. Whether the optional Block 10 scope will be awarded is also not stated.
Filed with NSE on . Reference: Original filing (PDF)
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