PNC Infratech Q1 earnings beat supports growth outlook amid NHAI review

Investment View and Valuation

In its August 10, 2026 Q1 FY27 result update, Prabhudas Lilladher retained its BUY rating on PNC Infratech and its SOTP-based target price of Rs 271. The broker said the company delivered healthy operational performance, with adjusted revenue broadly in line with its estimates and consensus, while adjusted profit exceeded expectations because of stable execution and improved profitability.

Prabhudas Lilladher retained its FY27E and FY28E estimates. It factors in EPS growth of 15 per cent in FY27E and 30 per cent in FY28E. The SOTP valuation is supported by PNC Infratech’s net cash balance sheet, with valuations of about 11x FY28E EPS and 0.8x FY28E book value.

Q1 FY27 Financial Performance

PNC Infratech reported standalone Q1 FY27 revenue of Rs 15.1 bn, up 34 per cent year on year. Reported revenue included a one-time Rs 2.2 bn settlement under the Vivad Se Vishwas scheme. On an adjusted basis, revenue was Rs 13.0 bn, up 14 per cent year on year and broadly in line with Prabhudas Lilladher’s and consensus estimates.

Growth Outlook and Order Pipeline

Management reiterated its FY27 revenue guidance of Rs 60 bn, representing 30 per cent growth, and FY28 revenue guidance of Rs 75 bn, representing 25 per cent growth. It also retained FY27 order-inflow guidance of Rs 120-150 bn.

The company had secured five new projects during the year and had submitted bids for 24 projects worth about Rs 320 bn, including 16 EPC and eight HAM projects. Another 78 projects worth about Rs 1.7 tn were expected to be bid over the following two to three months. Management highlighted medium-term opportunities across highways, railways, metro, airports, mining, power transmission and water, supporting diversification beyond roads.

Order Book and Project Execution

PNC Infratech’s order book stood at about Rs 191 bn, providing revenue visibility for the next two to three years. Its composition was as follows:

The 2 GW solar EPC project is expected to start execution in Q4 FY27, with a meaningful FY28 revenue contribution of more than Rs 10 bn. Mining execution constraints related to land availability had largely eased, and management maintained a target of about Rs 5 bn annual mining revenue in both FY27 and FY28.

Working Capital and Balance Sheet

Working capital was 110 days. Management expects improvement through pending payments from JJM and Andhra Pradesh irrigation projects. Andhra Pradesh irrigation receivables are expected to fall to about Rs 0.6 bn following collections.

Standalone cash and investments were about Rs 14.6 bn, resulting in a net cash surplus of about Rs 1.3 bn. Pending equity commitment for ongoing HAM projects was Rs 4.4 bn, which management expects to fund from internal cash generation over two years. New HAM projects could require about Rs 4.0 bn of equity, largely during FY28-FY29.

Key Risk and Uncertainty

A key uncertainty is the NHAI show-cause notice related to the Kanpur-Lucknow Expressway incident. Management said NHAI was reviewing its response and did not comment on potential regulatory action or bidding restrictions. It described the affected areas as isolated, rainfall-related maintenance issues.