PNC Infratech reports a significant rise in first-quarter earnings driven by revenue growth and an expanding order book, but faces questions over the condition of its Lucknow-Kanpur Expressway amidst ongoing project delays and sector uncertainties.
PNC Infratech reported a sharp rise in first-quarter earnings for the 2027 financial year, but the upbeat numbers were overshadowed by fresh uncertainty over one of its flagship highway projects. The infrastructure developer said standalone revenue climbed 34% year on year to ₹1,518 crore, while standalone EBITDA jumped 167% to ₹375 crore and profit after tax rose 235% to ₹271 crore. According to a related analysis of the results, the company also ended the quarter with an unexecuted order book of more than ₹19,100 crore, giving it a sizeable base of future work.
The earnings call underlined how PNC is trying to reduce its dependence on roads by pushing harder into water, rail, power transmission, airport and coal projects. The company said non-road work now makes up nearly 40% of its order book and that it has already filed 24 bids worth ₹32,000 crore, with another 78 projects valued at about ₹1.7 lakh crore identified for bidding over the next few months. It also reaffirmed its full-year revenue targets of ₹6,000 crore for FY27 and ₹7,500 crore for FY28, alongside an FY27 order inflow goal of ₹15,000 crore.
Management sought to calm concerns over the Lucknow-Kanpur Expressway after reports of cracks following heavy rain in July, saying the damage was limited to isolated stretches and that repairs were being handled under the concession agreement. Reuters did not independently verify the company’s assessment, but local reports had already raised questions about the condition of the road just days after it opened. The issue matters because PNC has recently started commercial operations on the project after receiving a provisional completion certificate, making it a visible test case for the group’s execution record.
The company declined to speculate on the potential consequences of a show-cause notice from the National Highways Authority of India, including whether it could face a non-performer tag or a bidding ban. That caution comes at a time when award activity in the highways sector has been weak and the company is also dealing with delays in water projects under the Jal Jeevan Mission, where it said government dues remain pending. PNC said it expects those receivables to improve working capital in the September quarter.
Even with the uncertainty, PNC highlighted a healthy balance sheet, saying it had a net cash surplus of ₹133 crore at June 30 and that internal accruals should cover equity needs for future hybrid annuity model projects. The company also pointed to recent financial support from outside the quarter, including a ₹244 crore arbitration award in July and ₹235 crore received from NHAI under a one-time settlement. Analysts tracking the stock have said those inflows strengthen the near-term funding position as the company pursues a broader mix of highway and non-highway work.
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