PNC Infratech Limited — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

PNC Infratech reported a mixed Q3 FY26, with strong consolidated EBITDA margins but a notable decline in revenue both for the quarter and nine months year-on-year. The company maintains a healthy order book of over ₹19,000 crores and a robust bidding pipeline, signaling future growth potential. However, slow project awarding, persistent water project receivables, and execution delays in irrigation projects remain areas of concern, impacting near-term revenue growth.

Highlights

  • Consolidated EBITDA margin for Q3 FY26 was strong at 19.91%.

  • Robust bidding pipeline of over ₹1,20,000 crores identified for future opportunities.

  • Government's increased capital expenditure for infrastructure (9% increase to ₹12.2 lakh crore) and record allocation to MoRTH (₹3.09 lakh crore) and NHAI (₹1.87 lakh crore) signals strong sector tailwinds.

  • Incorporated a new wholly-owned subsidiary, PNC Renewable Energy Private Limited, to diversify into renewable energy.

  • Net debt to equity (consolidated) remains manageable at 0.82 times, with healthy cash reserves of ₹2,745 crores.

Concerns

  • Project awarding by MoRTH and NHAI remained muted, with only 377 km awarded in Q3 FY26 compared to 504 km in Q3 FY25.

  • Overall revenue declined by 22-23% in 9M FY26 compared to 9M FY25, with full-year FY26 revenue expected to decline by 10% YoY.

  • Water project receivables remain high at ₹735 crores, with significant amounts expected to be cleared only in H1 FY27.

  • Irrigation projects face execution delays due to limited working periods (5 months a year) and water availability issues, pushing completion to FY28.

Key financials

  1. Standalone Revenue ₹1,056 Cr
  2. Standalone EBITDA ₹131 Cr
  3. Standalone EBITDA Margin 12.4%
  4. Standalone PAT ₹77 Cr
  5. Standalone PAT Margin 7.3%
  6. Consolidated Revenue ₹1,201 Cr
  7. Consolidated EBITDA ₹239 Cr
  8. Consolidated EBITDA Margin 19.9%
  9. Consolidated PAT ₹77 Cr
  10. Consolidated PAT Margin 6.4%

What they filed

Q1 FY27: revenue up 18.6%, net profit down 23.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,427 1,470 1,704 1,423 1,128 −21%1,201 −18%1,617 −5%1,688 +19%
EBITDA356 379 362 367 253 −29%239 −37%277 −23%524 +43%
Net profit83 81 75 431 216 +160%77 −5%108 +44%332 −23%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹19,000 Cr

as of 2025-12-31 quantified

Composition

Mix 3 contract types
  • Highway contracts 53%
  • Water, canal, area development, railways and Airport projects 32%
  • Coal mining project 15%

Share of order book by contract type

Pipeline

L1 awaiting loa

33 bids submitted in India (22 EPC, 7 HAM, 4 TBCB for renewable energy) and 2 overseas bids (Uzbekistan road projects) for an aggregate value of ₹28,700 crores. Identified over 80 bidding opportunities across sectors for ₹1,20,000 crores.

Management expects further order inflow of around Rs. 6,000 crores this year, totaling Rs. 12,000 crores in the current financial year, despite slow awarding activity.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹400 Cr
    The total CAPEX which were earlier reported that total required CAPEX is Rs. 400 crores on Company basis. Out of that, up to December, we have capitalized Rs. 125 crores and the balance will be in this quarter.
  • Debt Net ₹1,106 Cr
    Our net worth as on 31st December 2025 is Rs. 5,710 crores, whereas standalone debt from Banks/Financial Intuitions and Inter Corporate Deposits is Rs. 1,106 crores. This translates to net debt to equity of 0.19 times.
  • M&A PNC Renewable Energy Private Limited Acquisition · Announced

    to undertake and manage its renewable energy-related operations.

    In Q3 FY'26, PNC Infratech Limited incorporated a new wholly owned subsidiary, PNC Renewable Energy Private Limited, to undertake and manage its renewable energy-related operations.
  • Liquidity Cash ₹1,299 Cr Standalone total cash & bank balance including current investments is Rs. 1,299 crores. Consolidated total cash & bank balance including current investments is Rs. 2,745 crores.
    The total cash & bank balance including current investments is Rs. 1,299 crores. ... The total cash & bank balance including current investments is Rs. 2,745 crores.

Guidance & targets

Revenue

  • FY26 Revenue Decline Revenue · FY26 · Medium confidence 10%
    But we expect robust execution during the 4th Quarter. Because three of our projects appointed dates have been declared and going in full swing. ... So with this kind of thing, we are expecting revenue, say, up to 5,000, which will translate into 10% decline when compared to FY '25.

    — T. R. Rao

  • Q4 FY26 Revenue Revenue · Q4 FY26 · Medium confidence ₹1,700-1,800 crores
    Yes, Rs. 1,700-Rs. 1,800 crores revenue and Rs. 5,000 crores.

    — T. R. Rao

  • FY27 Revenue Growth Revenue · FY27 · Medium confidence 25%
    And with a base of Rs. 5,000 crores, we are expecting an increase of 25% in FY '27.

    — T. R. Rao

Margin

  • EBITDA Margin Margin · FY26 · High confidence 12-12.5%
    Yes, 12%-12.5%.

    — Yogesh Jain

  • EBITDA Margin Margin · FY27 · Medium confidence 12.5%
    27 also would be in the same, around 12.5% only as of now. So maybe during the first quarter, we will relook at and we will share with you.

    — T. R. Rao

Order Inflow

  • FY26 Order Inflow Order Inflow · FY26 · High confidence ₹12,000 crores
    we expect further order inflow of around Rs. 6,000 crores this year, so totaling to Rs. 12,000 crores in the current financial year.

    — T. R. Rao

Water Project Completion

  • Water Project Completion Percentage Water Project Completion · FY27 · Medium confidence 60%
    So we are expecting that these outstanding also will be cleared during the first half of next financial year and then we will move ahead. With regard to, as of now, around Rs. 2,000 crores worth of project to be completed. So we are expecting FY '27, we will complete around 60% of that and remaining in FY '28.

    — T. R. Rao

Mining Project Revenue

  • Mining Project Revenue Mining Project Revenue · FY26 · High confidence ₹100 crores
    As I mentioned, in case of mining project, we expect around Rs. 100 crores in FY '26 and Rs. 500 crores in FY '27 and Rs. 600 crores in FY '28.

    — T. R. Rao

  • Mining Project Revenue Mining Project Revenue · FY27 · High confidence ₹500 crores

    — T. R. Rao

  • Mining Project Revenue Mining Project Revenue · FY28 · High confidence ₹600 crores

    — T. R. Rao

Solar Project Revenue

  • Solar Project Revenue Solar Project Revenue · FY27 · Medium confidence ₹1,000 crores
    But tentatively, we expect Rs. 1,000 crores revenue in FY '27, which is nearly 50% of the total EPC value of the solar project.

    — T. R. Rao

Irrigation Project Revenue

  • Irrigation Project Revenue Irrigation Project Revenue · FY27-FY28 · Medium confidence ₹150-250 crores
    Rs. 150 crores we are expecting in 27 and 28 we are expecting around Rs. 200-Rs. 250 crores.

    — T. R. Rao

Capital Expenditure

  • FY27 Capex Capital Expenditure · FY27 · High confidence ₹150 crores
    For FY '27, around Rs. 150 crores.

    — Pankaj Agarwal

Equity Investment

  • Remaining Equity Investment for HAM projects Equity Investment · next 2 years · High confidence ₹634 crores
    Till December 2025, Company already infused Rs. 1,110 crores equity and the remaining equity of Rs. 634 crore is to be invested over the next 2 years.

    — Pankaj Agarwal

  • Equity Investment in Q4 FY26 Equity Investment · Q4 FY26 · Medium confidence ₹100 crores
    We expect around Rs. 100 odd crores will be infused in this quarter.

    — Pankaj Agarwal

What to watch in Q4 FY26

Q4 FY26 Revenue Achievement

next quarter
Current Q3 FY26 Standalone Revenue: ₹1,056 crores
Target ₹1,700-1,800 crores

Why it matters

To assess if the company can achieve its guided Q4 revenue, crucial for meeting full-year FY26 revenue expectations and setting the base for FY27 growth.

Yes, Rs. 1,700-Rs. 1,800 crores revenue and Rs. 5,000 crores.

Risks & concerns

  • Land Acquisition and Regulatory Approval Delays

    high

    Recurrent extension of bid due dates and delays in securing necessary approvals or land acquisition hinder project awarding and execution.

    Management acknowledged

  • Muted Project Awarding Activity

    medium

    MoRTH and NHAI awarding remained subdued, with only 377 km of new road projects in Q3 FY26 compared to 504 km in Q3 FY25, impacting order inflow.

    Management acknowledged

  • Water Project Receivables

    medium

    Billed outstanding for water projects is ₹735 crores as of 31st December 2025, with substantial clearance expected only in H1 FY27, impacting working capital.

    Management acknowledged

  • Irrigation Project Execution Delays

    medium

    Irrigation projects face delays due to limited 5-month working periods and water availability, pushing completion to FY28 and impacting revenue recognition.

    Management acknowledged

Q&A highlights

6 direct
Overseas Business Strategy and Bids Direct
We submitted 2 bids in Uzbekistan. These are the road bids akin to the road projects what we undertake, two lane road projects in Uzbekistan. ... This should be around international kind of, equivalent Indian would be around Rs. 1,500 cores both put together. These are the funded projects, funded by the Government of Uzbekistan. So there is no investment risk. It is multilateral funding by ADB.

Reveals the company's first foray into overseas markets, specific location (Uzbekistan), project type (road), and funding mechanism (ADB), indicating diversification strategy.

Asked by Shravan Shah

Order Inflow Pipeline and Sector-wise Breakup Direct
As of now, in India, including those two Uzbekistan projects, we have submitted 33 bids for an aggregate value of around Rs. 28,700 estimated costs. ... Apart from, we identified over 80 bidding opportunities across the sector for a value of over Rs. 1,20,000 crores. ... More than Rs. 70,000 crores for NHAI. And 4 DBFOT toll projects.

Provides specific numbers for current bids submitted and the broader pipeline, highlighting the company's active participation in various infrastructure segments, particularly NHAI.

Asked by Shravan Shah

Revenue Outlook for Q4 FY26 and FY27 Direct
But we expect robust execution during the 4th Quarter. ... So with this kind of thing, we are expecting revenue, say, up to 5,000, which will translate into 10% decline when compared to FY '25. ... Yes, Rs. 1,700-Rs. 1,800 crores revenue and Rs. 5,000 crores. And with a base of Rs. 5,000 crores, we are expecting an increase of 25% in FY '27.

Clarifies the revenue trajectory, acknowledging a decline for FY26 but projecting a strong rebound for FY27, providing critical forward guidance for investors.

Asked by Shravan Shah

Water Project Receivables and Execution Partial
See, as of 31st December 2025, we have a billed outstanding of Rs. 822 crores. Out of that, we received Rs. 87 crores during the month of December and January. ... So we are expecting that these outstanding also will be cleared during the first half of next financial year and then we will move ahead. ... So we are expecting FY '27, we will complete around 60% of that and remaining in FY '28.

Addresses a key working capital concern (receivables) and provides a timeline for recovery, along with project completion expectations for the water segment.

Asked by Vaibhav Shah

HAM Asset Monetization Partial
Regarding the divestment of HAM assets which are under implementation, so we are evaluating all the options. Investors are approaching us and we are looking at other options also. But as I said, our primary focus as of now is to achieve the PCOD for the 4 projects which are we expect to receive the PCOD in the Q4 and the Q1 of this financial year. So going forward we will share the details because we are evaluating all the opportunities, all the options that are available.

Indicates ongoing strategic evaluation of HAM asset monetization, a significant capital allocation event for the sector, but without specific timelines or deals yet.

Asked by Abhinav

Competition Intensity in Bidding Direct
See, now NHAI has introduced that depletion networth criteria for the bid. It is a stringent criteria, we agree. But now the project, since no major project is awarded in terms of number as well as quantum, so that depletion will start once the awarding activities are picked up. So as awarding activities increases, this number of bidders whose networth is limited, they will get depleted and they may not be able to bid for the new project. Going forward, competition is expected to be reduced.

Provides management's view on the competitive landscape, suggesting that new NHAI criteria and increased awarding activity could reduce competition in the future.

Asked by Bhavin Modi

BESS Project Execution Timeline Direct
See, BESS project, we are in the final stage of identifying the land and executing the land lease and other kinds of agreements. We shortlisted 2 locations across 2 states. We are going to finalize one of them, and then accordingly we will finalize the land lease and other kinds of agreement connectivity things. Then we will start physical execution of the project, maybe from the second quarter of FY '27.

Gives a clear timeline for the physical execution start of the new Battery Energy Storage System (BESS) project, a key diversification effort.

Asked by Bhavin Modi

Standalone Cash Balance Direct
It is Rs. 1,299 crores. ... This balance is having in the subsidiary companies. One is the holding Company and the rest is other subsidiary companies.

Confirms the standalone cash position and clarifies that the consolidated cash includes balances in subsidiary companies, providing clarity on liquidity.

Asked by Vishal Periwal

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

PNC Infratech reported standalone revenue of ₹1,056 crores and consolidated revenue of ₹1,201 crores for Q3 FY26. Standalone EBITDA was ₹131 crores (12.4% margin), while consolidated EBITDA stood at ₹239 crores (19.91% margin). Standalone PAT was ₹77 crores (7.26% margin), also ₹77 crores consolidated (6.39% margin). For the nine months ended December 31, 2025, consolidated revenue was ₹3,751 crores with an EBITDA margin of 22.91% and PAT margin of 19.29%.

Order Book and Bidding Pipeline

As of December 31, 2025, the unexecuted order book stands at over ₹19,000 crores. Highway contracts comprise 53% of this book, while water, canal, area development, railways, and airport projects contribute 32%, and coal mining 15%. The company submitted 33 bids in India (₹28,700 crores estimated value) and 2 overseas bids in Uzbekistan (₹1,500 crores equivalent) during the last 1.5 quarters. A broader pipeline of over ₹1,20,000 crores in bidding opportunities has been identified, with management expecting an additional ₹6,000 crores in order inflow for FY26, bringing the total for the year to ₹12,000 crores.

Government Support and Sector Outlook

The Union Budget for FY27 shows a nearly 9% increase in capital expenditure for core infrastructure to ₹12.2 lakh crore. The Ministry of Road Transport & Highways received a record allocation of ₹3.09 lakh crore (an 8% YoY increase), and NHAI was allocated ₹1.87 lakh crore (a 10% increase). These allocations, along with the proposed Infrastructure Risk Guarantee Fund, are expected to support new highway development and reduce financing risks, positioning the roads and highways sector for sustainable growth.

Working Capital and Receivables Management

The company's billed outstanding for water projects as of December 31, 2025, was ₹822 crores. While ₹87 crores were received in December and January, ₹735 crores remain outstanding. Management expects substantial clearance of these receivables in the first half of the next financial year (H1 FY27). The total unbilled amount, including WIP, for water projects is estimated at ₹100-150 crores, with total unbilled revenue (road + EPC) around ₹440 crores.

Diversification into Renewable Energy and Other Segments

PNC Infratech incorporated a new wholly-owned subsidiary, PNC Renewable Energy Private Limited, in Q3 FY26. The NHPC Solar plus BESS project, awarded to the company, will be executed through this subsidiary. Physical execution of the BESS project is expected to commence in Q2 FY27, following finalization of land and agreements. The company is also targeting ₹100 crores in mining project revenue for FY26, growing to ₹500 crores in FY27 and ₹600 crores in FY28, and ₹1,000 crores in solar project revenue for FY27.

Capital Allocation and Liquidity

The total CAPEX for FY26 is guided at ₹400 crores, with ₹125 crores capitalized up to December 2025, and the balance expected in Q4. For FY27, CAPEX is projected at ₹150 crores. The remaining equity investment for HAM projects is ₹634 crores over the next two years, with ₹100 crores expected in Q4 FY26. Standalone net debt to equity is 0.19 times (debt of ₹1,106 crores), and consolidated net debt to equity is 0.82 times (debt of ₹5,478 crores). Standalone cash and bank balance, including current investments, is ₹1,299 crores, and consolidated is ₹2,745 crores.

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