PNCINFRA - PNC Infratech Limited Share Price

The management of PNC Infratech Limited provided an outlook for FY26, guiding a revenue growth of approximately 20% and an EBITDA margin target of around 13%. The expectation is for an order inflow of about Rs.15,000 crores over the fiscal year. This guidance includes anticipated contributions from several ham projects for which appointed dates are expected by the end of Q2 FY26.

Notable forward-looking points from the management include:

• A central government budget allocation of Rs.74,226 crores for the Department of Drinking Water & Sanitation for FY26, with Rs.67,000 crores earmarked for the Jal Jeevan Mission.
• A renewal of the Jal Jeevan Mission, with an emphasis on project completion by 2028, potentially stimulating business opportunities.
• The overall government focus on renewable energy is projected to create substantial project opportunities, especially with a target of 500 GW of renewable energy by 2030.
• Expectations of substantial new infrastructure projects initiated by state governments through long-term interest-free loans totaling Rs.1.5 lakh crore for infrastructure investments.
• In terms of financial performance, revenue for FY25 was reported at Rs.5,513 crores, and management expects considerable operational engagement in the next fiscal year across sectors, including water supply and infrastructure development.

Additionally, the financial health of the company remains robust, with net working capital days targeted at a reduction to 70-80 days and strong cash reserves anticipated post-monetization of several road assets. The anticipated proceeds from asset sales and additional project completions provide a sober foundational outlook for the year ahead.

1. Question: "Out of the total deal amount, we are yet to receive Rs. 1,070 crores. Is my understanding correct in that sense?"
Answer: "No, the correct figure is Rs. 649 crores that we are yet to receive. This includes the amounts for the Bareilly and Challakere projects."

2. Question: "What are you planning to do with the surplus cash balance this year?"
Answer: "We are focusing on pursuing fund-based projects across sectors like roads and highways, as well as opportunities initiated by government agencies. We will judiciously invest our surplus funds to ensure the best outcomes for the company."

3. Question: "Can you give us some guidance for FY '26 in terms of revenue, margins, and order inflow?"
Answer: "For FY '26, we are targeting a 20% growth in gross revenue and an EBITDA margin of around 13%. We are aiming for new orders worth Rs. 15,000 crores by the end of the current financial year."

4. Question: "What is the status of the CIDCO order, which has been canceled?"
Answer: "The CIDCO matter is still sub judice; we are challenging the court's order. The work order has not been formally withdrawn, and we have paused preconstruction activities until we receive further direction."

5. Question: "Have we received any cash for the monetization deal?"
Answer: "Yes, we have received consideration of Rs. 1,827 crores for the ten assets, with Rs. 160 crores remaining as a holdback amount to be received upon completion."

6. Question: "How much are we expecting in terms of orders from NHAI this year?"
Answer: "We expect around Rs. 60,000 crores worth of bids, out of which we anticipate securing 5% to 10%. We are targeting order inflow of Rs. 15,000 crores for FY '26."

7. Question: "What is the total investment required for our HAM projects?"
Answer: "We estimate around Rs. 400 crores will be required for FY '26 for our ongoing HAM projects, while additional amounts will be needed in FY '27 and FY '28."

8. Question: "Can you clarify the arbitration award that we received?"
Answer: "The arbitration award of Rs. 485.27 crores will not be recognized in P&L until we realize the payment. It depends on NHAI's response, which could be subject to legal processes."