PNCINFRA - PNC Infratech Limited Share Price

During the earnings conference call for Q1 FY'26 on August 14, 2025, management provided an optimistic outlook amidst current industry headwinds. They emphasized a long-term potential in the Indian infrastructure sector, particularly in the roads and highways segment. Key points included:

1. Revenue Guidance: Management affirmed their revenue guidance of Rs. 6,300 crore for FY'26, reflecting a growth of 15%-20% despite the current quarter's performance, indicating expectations for improved performance in Q3 and Q4.

2. Order Book Status: As of June 30, 2025, the unexecuted order book was over Rs. 17,000 crore, which does not account for the recently secured renewable energy and mining projects worth over Rs. 5,000 crore. This brings the total order book to over Rs. 22,000 crore.

3. New Project Segments: The company is diversifying into renewable energy and coal mining. They secured a 300 MW Solar Power Project and received a Letter of Acceptance for coal mining worth Rs. 3,489 crore.

4. Expected Revenue from New Segments: From the coal mining project, they anticipate average revenue of Rs. 600 crore per year over five years, with initial revenue projections of Rs. 300-400 crore for FY'26. For the solar energy storage system, significant revenue contributions are expected to commence in the subsequent year.

5. Operational Financials: For Q1 FY'26, standalone revenue stood at Rs. 1,136 crore, while consolidated revenue was Rs. 1,423 crore. PAT was reported at Rs. 81 crore for standalone and Rs. 431 crore for consolidated results.

6. Debt Position: Standalone net debt was notably low at 0.07x equity, signifying a strong balance sheet, while consolidated net debt to equity stood at 0.73x.

Management's cautious optimism hinges on upcoming project awards from NHAI, with expectations of receiving significant orders in the second half of FY'26.

Question 1: "So, just wanted a revised guidance number on the revenue for this year and also for next year FY'27, we have talked about 15%-20% kind of growth. So if you can let us know?"

Answer 1: We still maintain a 15%-20% growth for FY'26. The first quarter's performance was affected by one-off factors like arbitration and bonuses from last year. We expect improved turnover in Q3 and Q4, especially after the rainy season. A target revenue of around Rs. 6,300 crore for FY'26 is reasonable.

Question 2: "So is it fair, so let's put up a number would be a better. So at least Rs.6,300 crore plus kind of a number should be there on the topline front."

Answer 2: Yes, that's correct. If we consider a 15% growth, it aligns with a revenue target of Rs. 6,300 crore for FY'26.

Question 3: "So for next year, how one can look at will the growth rate on the revenue front should be a much higher 20% plus should be there?"

Answer 3: For FY'27, we again expect a growth rate of 15%-20%. The anticipation is based on new projects being appointed and the execution ramping up as we declare appointed dates.

Question 4: "So how much more are we looking to bag in this year and also at the same time if you can also specify in terms of the bid pipeline from which segments we are looking at?"

Answer 4: We aim to secure an additional Rs. 7,000 to Rs. 10,000 crore in new orders this fiscal year, primarily from the highway sector, as NHAI is set to award large projects worth Rs. 3 lakh crores.

Question 5: "So how much revenue one can look at from the coal mining this year and from next year onwards?"

Answer 5: From the coal mining project, we expect to generate about Rs. 300 to Rs. 400 crore in the current year, and approximately Rs. 600 crore annually in subsequent years.

Question 6: "And for BESS, how much we are looking at this year and next year?"

Answer 6: This year we expect limited revenue as implementation starts post-approval, mainly in Q4. The project implementation costs Rs. 2,000 crores, with major work expected next year. Exact figures will be clearer in future quarters.

Question 7: "What is our current status of the irrigation Jal Jeevan Mission and the CIDCO project?"

Answer 7: The irrigation project is proceeding with limited work due to rainy season constraints, targeting Rs. 150 crore this year. Jal Jeevan Mission shows 67% progress in Phase II, with completion anticipated by FY'27. The CIDCO project is stalled due to court issues.

Question 8: "What is the CAPEX that we are planning for the full year and out of that how much have we done in Q1?"

Answer 8: Our overall CAPEX target for this financial year is around Rs. 450 crore, with no actual CAPEX incurred in Q1. The spending will take place in the subsequent quarters.

Question 9: "What is the operational profitability we expect from coal mining and the margin for coal mining projects?"

Answer 9: We expect a CAPEX of around Rs. 400-500 crore for coal mining, with an estimated EBITDA margin similar to our typical projects, around 13%.

Question 10: "What is our outstanding receivables for various projects?"

Answer 10: As of June, our receivables stand at around Rs. 700 crore for JJM and Rs. 90 crore for the irrigation project.