PNC Infratech Limited

PNC Infratech reported a consolidated revenue of ₹1,423 crores for Q1 FY26, with a robust consolidated EBITDA of ₹367 crores, translating to a 25.8% margin. Consolidated PAT stood at ₹431 crores, achieving a 30.3% margin. On a standalone basis, revenue was ₹1,136 crores, an approximate 13% decline compared to Q1 FY25, with EBITDA at ₹141 crores (12.4% margin) and PAT at ₹81 crores (7.1% margin). The standalone decline was primarily attributed to delays in appointed dates for HAM projects, while Q1 FY25 included arbitration and bonus amounts.

The company's unexecuted order book stood at over ₹17,000 crores as of June 30, 2025. Including new wins of approximately ₹5,000 crores in renewable energy and coal mining, the total order book now exceeds ₹22,000 crores. Highway and expressway contracts comprise 67% of the ₹17,000 crore order book, while water, canal, and area development contribute 33%. Management aims for an additional ₹7,000-10,000 crores in order inflows in the next three quarters, primarily from the highway sector, targeting a total FY26 inflow of up to ₹15,000 crores.

PNC Infratech has strategically diversified into renewable energy and coal mining. In July 2025, the company secured L1 bidder status for a 300 MW Solar Power Project with 600MWh Battery Energy Storage System from NHPC, valued over ₹2,000 crores (EPC). In August 2025, it received an LOA for a coal mining project from South Eastern Coalfields Limited for ₹3,489 crores, to be executed over 5 years. The coal mining project is expected to generate ₹300-400 crores in revenue this fiscal year and over ₹600 crores annually thereafter, with an EBITDA margin of 12-13%.

The company successfully completed the sale of its 100% equity stake in PNC Bareilly Nainital Highways Private Limited to Highway Infrastructure Trust (promoted by KKR) on July 31, 2025. This transaction, valued at an Enterprise Value of ₹716.2 crores, yielded ₹153.48 crores towards equity and ₹239.35 crores against unsecured loans. This marks the completion of 11 out of 12 planned asset divestments. The final asset, PNC Challakere Karnataka Highways Private Limited, with an estimated equity valuation of ₹200 crores, is expected to be divested in Q2 FY26.

Out of 13 HAM projects, 3 have achieved PCOD, 6 are under construction, and 3 have achieved financial closure with appointed dates expected in Q2 and Q3 FY26. The remaining MPRDC HAM project also awaits its appointed date in Q2 FY26. Total equity requirement for these HAM projects is ₹1,744 crores, with ₹1,019 crores already infused and the remaining ₹725 crores to be infused over the next 2-3 years, expected to be met through internal accruals. However, execution for several HAM projects awarded in FY24 was delayed due to land acquisition issues and non-declaration of appointed dates.

As of June 30, 2025, standalone net worth was ₹5,557 crores with standalone debt of ₹20 crores, resulting in a net debt to equity of 0.07x. Consolidated net worth was ₹6,421 crores, with total debt of ₹4,712 crores and a net debt to equity of 0.73x. The company reported a consolidated cash and bank balance (including current investments) of ₹2,672 crores. A significant concern is the over ₹700 crores in outstanding receivables from the Jal Jeevan Mission due to funding paucity, which management expects to be cleared in the current quarter.

Management acknowledges the subdued NHAI awarding activity in recent years but remains optimistic about the long-term outlook, citing MORTH's target to award ₹7 lakh crore in new highway and expressway projects. PNC Infratech has bid on 13 projects (HAM, EPC, TOT) worth approximately ₹48,000 crores, including a TOT project valued at ₹30,000 crores over 20 years, with results expected in the next 2-6 weeks. The company expects these bids to contribute to its order book and future growth, despite intense competition in the sector.