PNC Infratech (PNCL IN) – Q1FY27 Result Update – Guidance Intact, outcome on NHAI notice awaited – BUY
Published on 10 Aug 2026
PNC Infratech delivered a healthy Q1FY27 performance, with adjusted revenue (excluding the one-time settlement) broadly in line with our and consensus estimates, while adjusted PAT (+33% YoY) exceeded expectations on the back of stable execution. Management reiterated its FY27/FY28 revenue guidance of INR 60bn/75bn (+30/+25% YoY) and FY27 order inflow guidance of INR 120–150bn, supported by a robust bidding pipeline of 24 bids worth ~INR 320bn and an identified opportunity pipeline of 78 projects worth ~INR 1.7tn. The company also expects working capital to improve from the current 110 days, aided by the release of pending payments from JJM and Andhra Pradesh irrigation projects, with AP irrigation receivables expected to decline to ~INR 0.6bn following imminent collections. On the Kanpur-Lucknow Expressway incident, management maintained that the matter remains under NHAI's review, describing the affected stretches as isolated rainfall-induced maintenance issues while refraining from commenting on any potential regulatory outcome. We continue to factor in FY27E/FY28E EPS growth of 15%/30% and reiterate our BUY rating with a SOTP-based target price of INR 271, underpinned by a robust net cash balance sheet and valuations at ~11x FY28E EPS and ~0.8x FY28E BV.
