Lakshya Powertech Limited, a growing name in India's engineering and power solutions sector, has announced a significant development via a regulatory filing with the National Stock Exchange of India (NSE Emerge). On May 15, 2025, the company confirmed that it has secured a work order worth ₹22.5 crore (INR Twenty-Two Crore Fifty Lakh) from Hoerbiger India Private Limited. This move marks a notable milestone for Lakshya Powertech, further cementing its capabilities in handling large-scale engineering service contracts within the Indian industrial ecosystem.

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to disclose any material events that may influence investor decisions. As per the official communication signed by Mr. Akash Patel, Company Secretary and Compliance Officer of Lakshya Powertech, the details of the contract have also been shared in accordance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Key Elements of the Work Order

According to the Annexure-I provided with the filing, the scope of work includes three major components:

1. Compressor Dismantling and Inspections – involving technical dismantling of heavy-duty industrial compressors followed by thorough mechanical inspections.

2. Compressor Skid Packaging – which refers to packaging entire compressor systems, usually for transportation or on-site assembly.

3. Supply of Balance of Plant (BOP) Materials – essential auxiliary components required to support the operation of core plant equipment.

The contract has been awarded by Hoerbiger India Private Limited, a reputed domestic industrial entity with a long-standing presence in precision engineering and industrial automation solutions.

Timeline and Financials

The execution timeline of the project is 12 months from the date of commencement. The total order value stands at ₹22.5 crore (excluding taxes), reflecting a healthy addition to Lakshya Powertech's order book. While no specific commencement date has been mentioned, the standard execution schedule implies a potential revenue realization by the end of the FY 2025-26.

Non-Related Party Transaction

One of the critical disclosures made by the company is that neither the promoters, promoter group, nor any group companies have any interest in the entity that awarded the work order. Further, it has been clarified that this transaction does not fall under the related party transaction criteria as per SEBI guidelines. This ensures that the transaction is entirely independent and executed at arm's length, which is a positive governance marker for institutional investors and minority shareholders.

Strategic Importance for Lakshya Powertech

The awarding of this order is a strong testament to Lakshya Powertech’s growing capabilities in the field of industrial support services, especially in core mechanical and compressor-based applications. This deal adds substantial value to the company's credentials and market perception, especially in India’s industrial services and power infrastructure domain.

As the company continues to target high-value projects in compressor engineering, electrical design, and industrial packaging, such contracts further bolster its order visibility and revenue consistency. For an SME-listed entity like Lakshya Powertech, maintaining momentum through consistent order inflows is crucial for long-term growth and investor confidence.

Background and Corporate Overview

Founded in 2012 and headquartered in Ahmedabad, Gujarat, Lakshya Powertech Limited transitioned from a private limited company to a public one as it gained traction in electrical EPC projects, control panel manufacturing, and mechanical maintenance services. The company is listed on the NSE SME Emerge platform under the symbol “LAKSHYA”.

In recent years, Lakshya Powertech has aggressively expanded into customized engineering solutions, driven by both domestic industrial demand and the government’s Atmanirbhar Bharat initiative. It provides a wide range of end-to-end services, including design, fabrication, testing, and installation of industrial infrastructure components.

Investor Perspective

From an investment standpoint, this development may be seen as a positive trigger for the company’s stock performance. The work order’s value of ₹22.5 crore is significant, especially when compared to the scale of operations of other SME-listed peers. This could boost top-line figures, support operational margins, and potentially improve quarterly earnings.

Moreover, with a 12-month execution period, the company may see steady revenue recognition over the next four quarters, leading to greater financial predictability. The absence of related-party transactions adds an element of transparency that might appeal to retail investors and institutional participants who are focused on corporate governance.

Industry Context

The contract's awarding also mirrors a broader industrial trend in India, where domestic engineering firms are increasingly gaining traction for complex and high-value contracts. With Make in India and Digital India initiatives, many large and mid-sized companies like Hoerbiger India are leaning on local suppliers and engineering service providers to reduce costs, optimize timelines, and improve ecosystem synergies.

In sectors such as oil & gas, manufacturing, defence, and infrastructure, auxiliary services like compressor maintenance, BOP material supply, and industrial packaging are in high demand. Lakshya Powertech’s ability to win such contracts highlights its operational strength and technical know-how, allowing it to compete with larger players in niche service verticals.

Conclusion

The ₹22.5 crore work order from Hoerbiger India Private Limited represents a significant achievement for Lakshya Powertech Limited, showcasing the company’s rising profile in the industrial services domain. With a clearly defined scope, 12-month execution timeline, and domestic project alignment, the work order is expected to enhance Lakshya’s revenue pipeline, strengthen client credibility, and bolster investor confidence. As the company continues to pursue more such high-value contracts, stakeholders can expect a robust performance trajectory in the coming quarters.

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