PNC Infratech (PNCL IN) – Q2FY27 Result Update – In-line operating performance – BUY
Published on 30 Oct 2026
PNC Infratech delivered an in-line operating performance in Q2FY27, with revenue broadly in line with our and consensus estimates, while EBITDA remained flat YoY as higher operating costs weighed on profitability. PAT declined to INR 0.73bn (-12%YoY), missing our and consensus estimates, impacted by higher depreciation and finance costs. Management reiterated FY27/FY28 revenue guidance of INR 60bn/75bn and FY27 order inflow guidance of INR 120–150bn, with INR 42.6bn secured so far. The company has identified ~80 projects worth INR 1,800bn for bidding through January 2027, with 17 bids worth INR 166bn already submitted. The High Court’s interim relief on the debarment order restores PNC’s eligibility to bid for NHAI, MoRTH and NHIDCL projects. International expansion into Kazakhstan, Georgia, Uzbekistan and the UAE offers additional growth opportunities, while execution ramp-up and fresh order wins remain key to achieving guidance. We factor in FY27E/FY28E EPS growth of 15%/28% and reiterate our BUY rating with a SOTP-based target price of INR 234 (earlier INR271), underpinned by a net cash balance sheet and valuations at ~6x 1HFY29E EPS and ~0.5x 1HFY29E BV.
