PNCINFRA - PNC Infratech Limited Share Price

Management provided an optimistic outlook for PNC Infratech Limited, projecting a 30% revenue growth for FY27, aiming for approximately INR 6,000 crores, followed by a 25% growth for FY28, targeting around INR 7,500 crores. This optimism is rooted in the expectation of improved project approvals and land acquisition processes.

Key forward-looking points include:

• The company's unexecuted order book stands at over INR 22,000 crores. The breakdown includes 62% from highway contracts, and 25% from water, canal, area development, railway and airport contracts, reflecting broad diversification.
• The company plans to secure additional orders worth INR 15,000 crores in FY27, with expectations of INR 3,957 crores already achieved and a potential INR 6,000 crores total including upcoming solar projects.
• Specific projects include two HAM projects in Uttar Pradesh with a combined bid project cost of INR 3,483 crore, and a bridge project in Lucknow valued at INR 559 crore.
• For FY27, management anticipates around INR 600 crore revenue from solar projects, with actual execution expected to begin by Q3 2026.
• Despite facing margin pressures from increased input costs due to geopolitical tensions, management is implementing compensation mechanisms to mitigate these impacts, targeting an EBITDA margin of around 12% for FY27.
• The company highlighted a solid financial position, with total cash and bank balance totaling INR 2,856 crores on a consolidated basis, using internal accruals to support future equity investments.

These points underline a committed focus on expanding both the execution and diversification of project portfolios, positioning the company favorably for upcoming fiscal growth.

Q&A Section of PNC Infratech Limited Earnings Call Transcript (May 20, 2026)

Question 1: "Could you provide guidance on revenue growth for FY27 and FY28?"

Answer: We achieved a turnover of INR 4,633 crores in FY26 due to delays in four projects amounting to over INR 4,400 crores. For FY27, I'm proposing a guidance of around 30%, which leads to a top line of approximately INR 6,000 crores. For FY28, we look at a further growth of about 25%, translating to roughly INR 7,500 crores. The EBITDA will continue around 12% for FY27, adjusted based on market conditions.

Question 2: "Are there any risks to margin in FY27?"

Answer: Yes, it's likely we'll face margin pressure due to rising costs, especially bitumen prices. While the government introduced a compensation mechanism to mitigate these increases from April 1, we anticipate that initial quarters may reflect these pressures. However, we expect to stabilize our margins in Q3 and Q4, maintaining an overall EBITDA of around 12% for FY27.

Question 3: "What is the new order book outlook for FY27?"

Answer: We expect to secure an overall new order book of around INR 15,000 crores in FY27. Out of this, we've already obtained INR 3,957 crores in the highways sector. Additionally, when incorporating renewable energy contracts, we're looking at potential order inflows of around INR 9,000 to INR 10,000 crores further this year.

Question 4: "Can you provide details on balance sheet figures like retention money and unbilled revenue?"

Answer: Certainly! Our retention money stands at INR 264 crores, mobilization advance is INR 155 crores, and total debtors amount to INR 1,660 crores, with INR 372 crores attributed to HAM debtors. As for unbilled revenue, it is currently INR 475 crores.

Question 5: "Do you see a change in competition from NHAI and MoRTH projects?"

Answer: We anticipate competition will remain intense, particularly in the EPC segment. However, for HAM and BOT Toll projects, we expect lesser competition due to fewer bidders. Our healthy balance sheet allows us to invest in larger projects, fostering opportunities in segments with reduced competition.

Question 6: "What is the CAPEX for FY27?"

Answer: We're targeting a CAPEX of around INR 150 crores for FY27, focusing on enhancing our operational and project execution capabilities.

Question 7: "What revenue do you expect from the solar project?"

Answer: We're projecting to achieve around INR 600 crores in revenue from the solar project in FY27, with physical execution expected to start in Q3 post-final approvals. Our main goal is to start procurement and subsequently construction.

Question 8: "What are the expected margins moving into new segments like mining?"

Answer: As we diversify into sectors like mining and solar, we do not foresee a significant margin impact as we aim to maintain similar margins of 12%. Our experience in project management across sectors historically has not led to sizable margin variations.

Question 9: "What is the expected timeline for the two new HAM projects?"

Answer: We're anticipating the appointed date for the new HAM projects to be declared in Q4 of the current financial year following the execution of the concession agreement and fulfillment of financial closure conditions.

Question 10: "What are the payment terms for the MPRDC project?"

Answer: The MPRDC project is structured as a HAM project where 40% of payments will be made during the construction phase, thus we don't foresee major payment challenges related to this project.

This encapsulation captures the critical inquiries from the Q&A session, reflecting the forward guidance and expectations set by PNC Infratech's management.