1. At a Glance
PNC Infratech pulled off what many infra players only dream about — selling 10 HAM road assets for ₹1,827.6 crore, booking a fat profit in the process, and still looking fresh for Q2 execution. Q1 FY26 revenue dropped 34% YoY to ₹1,423 crore, but PAT exploded 233% to ₹431 crore thanks to that “other income” windfall of ₹353 crore. Without it, earnings would’ve looked more like a routine highway drive than a Formula 1 sprint. The market’s still chewing on the numbers, but the message is clear — monetisation is the new growth.
2. Introduction
If EPC was a sport, PNC would be the seasoned player who doesn’t always dominate the league table but wins big when the stakes are right. Incorporated in 1999, this Bareilly-headquartered infra company specialises in building roads, bridges, flyovers, and even airport runways. Execution skills? Sharp. Growth consistency? Not so much — sales CAGR over 5 years is just 4%, with a worrying TTM drop of 31%.
Still, one can’t ignore a 25%+ operating margin and ROE of ~14.6%, especially when you’re pocketing large cheques from asset sales to free up the balance sheet.
3. Business Model (WTF Do They Even Do?)
PNC Infratech’s business model runs on two engines:
- EPC (Engineering, Procurement, Construction)– Fixed-margin contracts, mostly roads/highways, executed for NHAI/state governments.
- HAM (Hybrid Annuity Model)– Build now, get part upfront, rest over years via annuities. Later sell to infra funds for lump-sum cash (exactly what they just did).
They’ve
completed 90+ major infra projects across 13 states, currently executing ~20. Their sweet spot is road EPC where they have repeat wins. Risk? High working capital intensity, lumpy order inflows, and execution delays from bureaucratic bottlenecks.
4. Financials Overview
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,423.0 | 2,168.0 | 1,704.0 | -34.36% | -16.49% |
| EBITDA (₹ Cr) | 367.0 | 969.0 | 362.0 | -62.12% | 1.38% |
| PAT (₹ Cr) | 431.3 | 163.1 | 75.0 | 164.5%* | 474.6% |
| EPS (₹) | 16.82 | 6.26 | 2.94 | 168.6% | 472.8% |
*PAT inflated by ₹353 Cr “other income” from asset sale.Annualised EPS (inflated) = ₹16.82 × 4 = ₹67.28 → P/E ≈ 4.59 (not sustainable).
5. Valuation (Fair Value RANGE only)
P/E MethodAdjusting for normalised PAT (~₹150 Cr/qtr), annualised EPS ≈ ₹24. → Sector median ~20× → FV ≈ ₹480.
EV/EBITDA MethodTTM EBITDA ≈ ₹1,465 Cr; EV/EBITDA sector avg12× → EV ≈ ₹17,580 Cr.Net debt ≈ ₹9,364 Cr borrowings – cash from asset sale (₹716 Cr post-tax inflow) = ₹8,648 Cr.Equity
