Summary
PNC Infratech Limited - Q3 FY 2026 Earnings Call Summary Tuesday, February 10, 2026, 2:30 PM
Event Participants
Executives 4 D. K. Agarwal (CFO), Pankaj Agarwal (VP Finance), T. R. Rao (Director Infra), Yogesh Jain (MD)
Analysts 7 Abhinav (ICICI Securities), Balasubramanian (Arihant Capital), Bhavin Modi (Anand Rathi), Deepashri Joshi (Ambit Capital), Ketan Jain (Avendus Spark), Shravan Shah (Dolat Capital), Vasudev (Nuvama)
Financials & KPIs (Standalone)
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹1,056 crores | -22.5% YoY; Decline attributed to muted awarding activity and low opening order book. |
| EBITDA | ₹131 crores | Margin at 12.40%; Marginally lower due to fixed overheads on a smaller revenue base. |
| PAT | ₹77 crores | Margin at 7.26%; Includes early completion bonuses from Hardoi and Mathura projects. |
| Net Worth | ₹5,710 crores | Strengthened by recent asset monetization proceeds. |
| Net Debt | ₹(193) crores | Net cash position at standalone level; Total cash & bank balance of ₹1,299 crores. |
| Order Book | ₹19,000+ crores | Highways (53%), Water/Rail/Airports (32%), Coal Mining (15%). |
Geographic & Segment Commentary
- Road & Highways: Management noted a significant industry slowdown, with NHAI awarding only 377 km in Q3 FY26. Despite this, the segment remains the core focus, contributing 53% to the order book, with 16 standalone EPC and 13 HAM projects currently in the portfolio.
- Water & Irrigation: JJM and canal projects face delays due to funding cycles and seasonal water availability. Billed outstanding in water projects stands at ₹735 crores; management expects 60% completion of remaining ₹2,000 crore works by FY27.
- Energy & Mining: New subsidiary “PNC Renewable Energy” was incorporated for solar operations. The NHPC Solar+BESS project (₹2,000 crores) and the Coal Mining project (₹2,957 crores) are entering execution phases, with solar revenue expected to ramp up in Q2 FY27.
Company-Specific & Strategic Commentary
- Overseas Expansion: The company submitted two road project bids in Uzbekistan totaling ₹1,500 crores (ADB funded). This marks a strategic move to utilize idle equipment and diversify geographical risk.
- Diversification Strategy: Management targets a 50-50 revenue mix between Highways and other sectors (Rail, Water, Renewables) over the next 2-3 years to mitigate the impact of NHAI’s volatile awarding cycles.
- Asset Monetization: Following the KKR deal, the company is evaluating further divestment of operational HAM assets once they achieve PCOD (expected in Q4 FY26 and Q1 FY27).
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY26 Revenue | ₹5,000 crores | Reflects a 10% YoY decline; implies a strong ₹1,700-1,800 crore Q4 performance. |
| FY27 Revenue | +25% Growth | Based on ramp-up of VRK packages, Pune Ring Road, and solar project execution. |
| EBITDA Margin | 12.0% - 12.5% | Guidance moderated slightly due to lower revenue scale and competitive EPC landscape. |
| Order Inflow | ₹12,000 crores | Target for full FY26; ₹6,000 crores already secured, remainder expected by March. |
Risks & Constraints
| Risk | Context |
|---|---|
| Awarding Delays | NHAI/MoRTH awarding remains subdued due to land acquisition hurdles and approval delays, impacting the replenishment of the order book. |
| Receivable Risk | ₹735 crores remains outstanding in the water segment; while payments have started, full recovery depends on state government fund disbursements. |
| Competitive Intensity | EPC bidding remains “very high” with 20-25 bidders per project; management expects NHAI’s new net-worth criteria to eventually reduce competition. |
Q&A Highlights
Order Pipeline & Uzbekistan Bids
- Question: What is the strategy behind bidding for Uzbek projects? (Shravan Shah)
- Answer: Projects are multilateral funded (ADB), removing investment risk; PNC is leveraging its existing equipment inventory for these ₹1,500 crore road bids (T. R. Rao).
Water Segment Receivables
- Question: Is there any improvement in the ₹822 crore water receivables? (Vaibhav Shah)
- Answer: Billed outstanding is down to ₹735 crores as of the call date; management expects a substantial portion to be cleared by H1 FY27 following Union Budget allocations (T. R. Rao).
Execution Ramp-up
- Question: What is the expected contribution from the Varanasi-Kolkata (VRK) packages? (Abhinav)
- Answer: Execution is in full swing after receiving the Appointed Date; expecting ₹300 crores in Q4 FY26 and ₹1,200-1,500 crores in FY27 (T. R. Rao).
New Ventures (BESS/Solar)
- Question: When will the ₹2,000 crore solar project hit the P&L? (Vasudev)
- Answer: Land finalization is in the last stage; physical execution starts in Q2 FY27, with ~₹1,000 crore revenue targeted for that fiscal year (T. R. Rao).
Key Takeaway
PNC Infratech reported a transitional Q3 FY26, characterized by a 22.5% YoY revenue decline due to industry-wide awarding delays and land acquisition hurdles. Despite the near-term slowdown, the company maintained a robust net-cash position with ₹1,299 crores in standalone cash and a healthy unexecuted order book of over ₹19,000 crores. Strategically, PNC is diversifying into Uzbekistan (₹1,500 crore bids) and Renewable Energy (₹2,000 crore solar project) to reduce dependency on NHAI road awards. Management has guided for a strong Q4 to limit the annual revenue decline to 10%, followed by a 25% recovery in FY27 as major projects like the Varanasi-Kolkata packages and Pune Ring Road ramp up. Key watch points include the timely recovery of water segment receivables (₹735 crores) and the stabilization of margins amid high competitive intensity in EPC bidding.
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