PNC Infratech Ltd

Instrument and rating

• Long-term bank facilities for Awadh Expressway Private Limited rated CARE A+ (RwD).

Action and amount

• Rating placed on Rating Watch with Developing Implications; facility amount Rs 757.43 crore (reduced from 776.85).

Agency

• Rating agency: CARE Ratings Limited.

Rationale

• Rationale not disclosed in excerpt.

Financial Performance

• Standalone Q1 FY27 revenue Rs 1,518 crore; up 34% YoY from Rs 1,136 crore
• Standalone Q1 FY27 EBITDA Rs 375 crore; up 167% YoY from Rs 141 crore
• Standalone Q1 FY27 EBITDA margin 24.7%
• Standalone Q1 FY27 PAT Rs 271 crore; up 235% YoY from Rs 81 crore
• Standalone Q1 FY27 PAT margin 17.8%
• Consolidated Q1 FY27 revenue Rs 1,688 crore; up 19% YoY from Rs 1,423 crore
• Consolidated Q1 FY27 EBITDA Rs 524 crore; up 42% YoY from Rs 367 crore
• Consolidated Q1 FY27 EBITDA margin 31%
• Consolidated Q1 FY27 PAT Rs 332 crore; PAT margin 19.7%

Operating Update

• Unexecuted order book over INR 19,100 crore; highway 64%, water/canal/railway ~21%, mining ~15%
• HAM portfolio: 14 HAM projects; aggregate bid cost Rs 17,200 crore
• HAM status: 6 PCOD/COD; 5 under construction; 1 MPRDC financial closure submitted
• HAM: 2 concession agreements signed; equity Rs 1,623 crore; infusion Rs 1,187 crore; balance Rs 436 crore
• Internal accruals expected to meet HAM equity requirement
• Two new HAM projects secured in Q1 FY27; SPV barabanki/mustafabad and mustafabad-biswariya

Balance Sheet and Cash Flow

• Standalone net worth Rs 6,084 crore; standalone debt Rs 428 crore; debt/equity 0.07
• Standalone cash & bank balance Rs 1,046 crore; net cash Rs 133 crore
• Consolidated net worth Rs 7,147 crore; total debt Rs 5,448 crore; debt/equity 0.76
• Consolidated cash & investments Rs 2,870 crore
• Inventory Rs 847 crore; Debtors Rs 1,900 crore; Trade payables Rs 680 crore
• Mobilization advance Rs 178 crore; Retention Rs 295 crore; Unbilled Rs 462 crore
• HAM debtors Rs 479 crore; Water debtors Rs 925 crore
• JJM receivable pending Rs 741 crore; unbilled revenue from JJM Rs 20 crore

Projects and Capex

• Pantnagar Airport LOI for EPC work; INR 302 crore; 24 months
• May 2026 LOA: Lucknow–Kanpur flyover; INR 194 crore
• May 2026 LOA: 4-Lane Ganga bridge; INR 559.5 crore; 36 months; 50:50 JV
• May 2026 one-time settlement with NHAI; INR 234.99 crore
• 31 July 2026 arbitration award; INR 244 crore for NH 29E upgrade
• Concession agreements signed with NHAI on 16 July 2026 for 2 new HAM projects
• HAM projects secured in Q1 FY27 through new SPVs Barabanki Mustafabad Highway and Mustafabad Biswariya Highway
• Completion certificate received for Prayagraj Kaushambi HAM Package 3 (20 June 2026)
• Total HAM equity investment Rs 1,623 crore; equity infused Rs 1,187 crore; remaining Rs 436 crore over 2 years
• Total HAM equity expenditure targets: Rs 226 crore in FY27; balance in FY28
• HYD/IRR pipeline: 2 new HAMs add ~Rs 400 crore equity; total project cost ~Rs 3,483 crore

Guidance and Outlook

• Guidance reaffirmed: FY27 revenue Rs 6,000 crore; FY28 revenue Rs 7,500 crore
• FY27–FY28 order inflow guided at Rs 12,000–15,000 crore; 5 new projects added this year
• EBITDA margin guided around 12% on a recurring basis

Q&A Highlights

• NHAI Kanpur–Lucknow show-cause notice: Rao says comment is speculative; awaiting NHAI reply
• Cash in PNC Infra Holdings ~Rs 1,100 crore; ICD ~Rs 485 crore; debt increased due to machinery loan
• Interest cost run-rate ~Rs 20 crore per quarter; debt expected to trend downward
• Equity infusion outlook: HAM equity Rs 436 crore; FY27 Rs 226 crore; rest in FY28/29
• Two new HAMs equity ~Rs 400 crore; total HAM cost ~Rs 3,483 crore
• Irrigation/JJM revenue targets: FY27 irrigation Rs 150 crore; FY28 Rs 600 crore; JJM FY27 Rs 700–800 crore; FY28 Rs 1,000 crore

Meeting Details

• Date of call: August 10, 2026.
• Type and mode: group conference call; audio recording.
• Event/organiser: earnings conference call with investors, organised by PNC Infratech.
• Quarter discussed: quarter ended June 30, 2026.

Participants

• Key company participants: not specified in filing.

Purpose

• Purpose: discuss unaudited quarterly results for quarter ended June 30, 2026.

Additional Notes

• Recording: audio recording of the conference call will be made available.
• Transcript will be shared with exchanges and uploaded on the company website.

Business Overview

• Core business: EPC contracts across roads, water, canals, airports; HAM, BOT, and PPP development.
• Key strategic update: HAM awards from NHAI and new EPC projects.

Operational Highlights

• LOA from NHAI for Barabanki–Mustafabad HAM; project cost Rs 1,728 Cr.
• LOA from NHAI for Mustafabad–Biswariya HAM; Rs 1,755 Cr.
• Concession agreements signed; SPVs formed for two HAM projects.
• LOA from Lucknow Development Authority for 4-lane flyover EPC; Rs 194 Cr; 24-month completion.
• Ganga River Bridge in JV; Rs 559 Cr; 24-month completion.
• Pantnagar Airport LOI; Rs 302 Cr; 24-month period.
• Completion Certificate: Singraur Uphar-Baranpur Kadipur Ichauli HAM; COD 20 Jun 2026.
• Provisional Completion Certificate: Kanpur-Lucknow Expressway HAM; COD 27 Apr 2026.
• Arbitration award Rs 235 Cr for Agra Bypass NHAI EPC.

Financial Performance

• Revenue: Standalone Rs 1,518 Cr; YoY growth 34%.
• EBITDA: Rs 375 Cr; margin 24.7%.
• PAT: Rs 271 Cr; margin 17.8%.
• Total orderbook: Rs 15,670 Cr.
• Roads EPC: Rs 5,149 Cr; HAM: Rs 3,684 Cr.
• Debt: Standalone Rs 913 Cr; D/E 0.15x.
• Credit rating: CARE AA+/A1+; Outlook Stable.

Capital Structure & Liquidity

• Liquidity limits: Fund-based Rs 1,000 Cr; Non-fund-based Rs 5,000 Cr.
• HAM equity: total Rs 1,623 Cr; invested Rs 1,187 Cr; balance Rs 436 Cr.
• Debt: Standalone Rs 913 Cr; D/E 0.15x.

Strategic Priorities & Outlook

• Capex plan: enable Rs 8,000–10,000 Cr turnover.
• Growth drivers: HAM/PPP expansion; BOT/OMT/HAM mix; water, rail, renewables focus.

Risks & Mitigation

• Risks: project delays; mitigated by in-house execution fleet.

Governance & Leadership

• Board unchanged; leadership team retained; no material governance changes disclosed.

NHAI press release clarifications

• Clarifications on NHAI press release regarding Kanpur–Lucknow Expressway Package-2.
• Concessionaire Awadh Private Limited is a subsidiary of PNC Infratech.
• Bid project cost for Package-2 is Rs 1513 crore.
• Completion certificates: provisional 1 Oct 2025; final 2 Feb 2025.
• Maintenance obligation extends 15 years post-construction; routine and major works included.
• About 300 m of the expressway affected by rains; <0.5% length.
• Repairs underway; majority completed; remaining stretches being repaired.
• NHAI show-cause notices issued; replies to be submitted; penalties and debarment possible.
• Interim order to remove project manager issued 28 July 2026; removal completed.
• No material impact on going concern; bid for new projects remains feasible.

Pantnagar Airport LOI details

• LOI dated 31-07-2026 received from Airports Authority of India for EPC works.
• Contract price: Rs 302.44 crore excluding GST.
• Scope: Cityside and Airside works including terminal building, runways, taxiways, and systems.
• Time to execute: 24 months completion period.
• Nature: Domestic entity awarded; no promoter or related party involvement reported.

Meeting Details

• Board meeting on Aug 8, 2026 in Agra to consider unaudited results for quarter ended June 30, 2026.

Key Agenda Items

• To consider and approve unaudited standalone and consolidated financial results for the quarter ended June 30, 2026.

Other Notes

• Trading window closed till 48 hours after the June 30, 2026 results declaration.