Power Mech said it has secured a contract worth Rs 2.96 billion (Rs 2.96 bn) to deliver work on the Mumbai Monorail, marking the company's formal entry into urban mobility. The award was described as a significant contract for the firm and follows its focus on infrastructure projects. Shares of the company rose on the announcement as investors reacted to the new order.

The contract will expand Power Mech's engineering and construction portfolio into urban transit systems and provides the company with exposure to the fast growing urban mobility segment in metropolitan areas. The work is expected to involve integration with existing transport infrastructure and coordination with city authorities, and the firm will draw on its experience in large scale projects. The move is consistent with a trend among infrastructure firms seeking diversification beyond traditional power sector contracts.

Analysts noted that the order will contribute to the firm's order book and could support revenue visibility in the near term without altering the company's stated strategic orientation. The size of the contract adds to project backlog and may create opportunities for follow on work in transport related projects. The firm will manage execution risk through established project management practices and by leveraging engineering teams.

The contract also highlights the growing focus on urban transit solutions in major Indian cities and reinforces the role of specialised contractors in delivering such projects. Power Mech's entry into this segment may position it to compete for similar contracts as cities increase investment in mass transit and last mile connectivity. The company will now seek to execute the project while pursuing further opportunities in urban mobility.