Target: ₹257
CMP: ₹212.75
PNC Infratech is anticipated to experience a gradual recovery from FY27 after a two-year period of declining execution, bolstered by increased activity in key hybrid annuity model (HAM) projects, new order acquisitions, and contributions from its solar and mining segments.
In Q4 FY26, the standalone revenue remained stable year-on-year at ₹1,460 crore, impacted by slower execution in certain road, HAM, and irrigation projects. The company’s profit after tax (PAT) declined by 17% to ₹100 crore, primarily due to lower operating profitability and the absence of one-time gains recorded in the previous period. Management projects an improvement in execution momentum throughout FY27, with an EBITDA margin guidance of approximately 12%. However, near-term profitability may face challenges due to commodity price volatility and increased input costs.
PNC Infratech is diversifying its portfolio beyond road construction, with rising mining operations and solar and battery energy storage system (BESS) projects expected to start contributing significantly from FY27. Following the completion of the PNC Challakere project, the company has monetized 12 road assets, generating an equity value of ₹2,520 crore against an investment of ₹1,740 crore, reflecting a valuation of 1.4 times book value.
Although the order pipeline, strong balance sheet, and new project opportunities provide a supportive backdrop, the trajectory of near-term execution and margins will depend on timely mobilization and stabilization of commodity prices. Analysts have revised FY27 earnings estimates downward by 11%, while maintaining FY28 projections and introducing FY29 estimates. The recommendation remains “Accumulate” with a target price of ₹257 based on a price-to-earnings ratio of 13 times expected FY28 earnings.
Published on May 25, 2026
