PNC Infratech Ltd (PNCINFRA) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, you are connected for PNC Infratech Ltd Q2 FY '27 earnings conference call. Please stay connected, the conference will begin shortly.
Moderator: Ladies and gentlemen, good day and welcome to PNC Infratech Limited Q2 FY27 Earnings Conference Call, hosted by JM Financial Institutional Securities Limited. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing "*" then "0" on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vaibhav Shah from JM Financial Institutional Securities Limited. Thank you and over to you, sir.
Vaibhav Shah (JM Financial Institutional Securities Limited): Yeah, hi. Thank you. Good afternoon, ladies and gentlemen. On behalf of JM Financial, I am pleased to welcome you all on PNC Infratech Limited second quarter FY27 earnings conference call. We have with us from the management, the Managing Director of the company, Mr. Yogesh Jain, Mr. T. R. Rao, Director Infra, and Mr. Pankaj Agarwal, Vice President, Finance and Accounts. We will begin with the opening remarks from the management followed by a Q&A session. Thank you and over to you, sir.
Yogesh Jain (PNC Infratech Ltd): Yes, good afternoon everyone. On behalf of PNC Infratech Limited, I extend a warm welcome to everyone for joining us today on this call. Today, I have with me Mr. T. R. Rao, Director Infra, Mr. Pankaj Agarwal, Vice President, and Strategic Growth Advisors, our Investor Relations advisors. The financial results and investor presentation have been uploaded on stock exchanges and the company website for your reference. I would first like to share the key development in the industry, followed by key operational update of the company and highlights of financial performance during the quarter and half year ended 30th September 2026, post which, we will be happy to answer your questions. The highway sector started showing signs of recovery in quarter two of financial year '27, after significant slowing down in project awarding activity persisted over the past two years. During quarter two of financial year '27, NHAI awarded highway projects of approximately 230 route kilometers compared to 107 route kilometers awarded in quarter one of financial year '27. Out of the 54 projects identified by NHAI for awarding during the remaining period of financial year '27, 19 projects have received approval while another 17 have been appraised and balance projects are expected to receive approvals shortly. It is expected that the pace of awarding would further improve going forward, supported by
Yogesh Jain (PNC Infratech Ltd): pipeline of projects. As the government is considering development of approximately 51,000 km of high-speed corridors across the country over the next decade, a large number of new business opportunities are expected to emerge for highway developers. Apart from highway sectors, significant opportunity are emerging across other sectors. Continued government focus on railways, metro rail, freight corridors, power transmission, renewable energy and storage, mining, water resource development, including drinking water supply, and urban developments, provide sustained growth opportunities for well-established infra companies. Railway sector continued to offer a robust pipeline of new projects supported by government's focus on capacity expansion, freight connectivity and logistic efficiency. The government has already identified 514 new railway infrastructure projects, spanning of approximately 40,000 km with a total estimated investment of of rupees 8 lakh crore under the National Rail Plan and Vision 2030, underscoring significant large-scale opportunity in the sector. The proposed HAM-based model for new railway projects, built on the success of highway development, is also expected to create expanded opportunities for established highway infrastructure players. Driven by India's rapid solar expansion, which reached over 16 70 GW capacity as of September 2026, following over 20 GW addition in H1 FY '27, the surging demand for complimentary transmission network and battery energy storage system is unlocking significant medium- to long-term investment opportunities across the renewal ecosystem. The projected capital expenditure of ₹6 lakh crore over the next 5 years in power transmission sector is aimed at evacuating over 900 GW of non-fossil capacity is expected to provide robust opportunities in both short short- and long- terms for infra developers. While highway will continue to remain our core focus sectors, we are actively expanding into other core sectors to build a broader, more resilient order book that supports long-term sustainable growth. Rising crude oil prices on account of the West Asia conflict have increased costs of key inputs, including diesel and bitumen, straining procurement, transport, construction, and equipment operations severely. Though MoRTH, NHAI and AAI have extended the monthly price adjustment escalation mechanism for eligible EPC and HAM projects through December 31, 2026, the actual impact of financial mitigation is effectively only to a limited extent. Consequently, persistent input cost inflation and partial escalation coverage continue to exert pressure on the operating margins of infrastructure players. Now coming to the recent update on the company. On October 12, 2026, the honorable High Court granted a stay on the effect of debarment order issued by the NHAI against both the company and the concessionaire, Awadh Expressway Private Limited. Accordingly, the company is in a position to submit bids to all the government authorities, including NHAI, MoRTH and and NHIDCL. In July 2026, company received a letter of award from the Airport Authority of India for EPC work of Pantnagar airport in Uttarakhand. The contract value of project is ₹302 crore, and it is to be executed in 12 months, in 24 months. On 31st July, 2026, the arbitration award was published in favor of company for ₹244 crores in connection with the an EPC project of Sonauli-Gorakhpur section of NH-29E executed for MoRTH through UP PWD. Our subsidiary Yamuna Highway Private Limited has
Yogesh Jain (PNC Infratech Ltd): the rating upgrade to CARE AA+ with a positive outlook during the quarter. To explore international growth beyond the domestic market, the company has incorporated subsidiary, PNC Infratech LLP in Kazakhstan. In This strategic move position the company to evaluate long-term opportunity arising from Kazakhstan's planned 9.8 billion US dollar road infrastructure program in the country. Over 3,000 km over the next three years. As part of the company endeavors to expand into international market, the company submitted a bid for a road project in Georgia to the Road Department under the Ministry of Infrastructure of Georgia in September '26. Company's 17 fund-based project portfolio comprises one BOT toll project, two BOT annuity project, and 14 HAM projects. Aggregate bid project cost of 14 HAM project is over ₹17,200 crores. Out of total 14 HAM projects, six projects achieved PCOD and COD, five project under construction, and one project of MPIDC financial project document have been submitted and for two newly secured project of NHAI, concession agreement signed, and financial closure is in progress. Total equity investment requirement for the 14 HAM project is ₹2,125 crores. Till September 2026, company infused ₹1,212 crores and the remaining equity of ₹913 crore to be invested over the next 2 to 3 years. Internal accruals that would be generated over the next 2 to 3 years should be adequate to meet the balance quantity of investment requirement. Now, moving on to our order book, company's unexecuted order book, including newly secured two NHAI HAM project, stand at over ₹18,000 crore. Highway contract contribute 63% of total unexecuted order book, while water, canal, railway and airport contract contribute around 21% and coal mining contract contributes about 16%. On bidding front, we have submitted 17 bids to different authorities for total estimated cost of ₹16,600 crores price bids of which are yet to be open. Now, I would present the results for quarter ended 30th September 2026. Standalone revenue in the second quarter of financial year '27 is ₹1,146 crore, which is higher by 17% as compared to ₹983 crore revenue in the second quarter of financial year '26. Standalone EBITDA in second quarter of financial year '27 is ₹138 crore and standalone EBITDA margin for quarter is 12.1%. Standalone PAT in the second quarter of financial year '27 is 73 crore, standalone PAT margin for quarters is 6.3%. Standalone revenue in the first half of financial year '27 is 2,664 crore, which is higher by 26% as compared to ₹2,119 crore revenue in the first half of financial year '26. Standalone EBITDA in the first half of financial year '27 is ₹513 crore, which is higher by 85% as compared to ₹277 crore in first half of financial year '26. Standalone EBITDA margin for the H1 financial year '27 is 19.2%. Standalone PAT in the first half of financial year '27 is ₹343 crore, that is 12.9%. Consoled revenue in the second quarter of financial year '27 is ₹1,322 crores, which is higher by 17% as compared to ₹1,128 crore in the
Yogesh Jain (PNC Infratech Ltd): Second quarter of financial year 26. Consol EBITDA in the second quarter of financial year 27 is Rs. 279 crore, which is higher by 10% as compared to 253 crore in the second quarter of financial year 26. Consol EBITDA margin for quarter 2 of financial year 27 is 21.1%. Consol PAT is 115 crore. Consol PAT margin for quarter 2 of financial year 27 is 8.7%. Consol revenue in the first half of financial year 27 is Rs. 3,011 crore, which is higher by 18% as compared to 2,550 crore in the first half of financial year 26. Consol EBITDA for the first half is Rs. 802 crore, which is higher by 29% as compared to Rs. 620 crore in the first half of financial year 27-- 26. Consol EBITDA margin for first half 27 is 26.6%. Consol PAT in the first half of 27 is 447 crore. Consol PAT is 14.8%. On a standalone basis, our net worth as on 30th September, 2026 is Rs. 6,143 crores, whereas standalone debt from banks and financial institutions and infra corporate deposit is Rs. 1,312 crore. This translate to net debt-to-equity of 0.21 times. Total cash and bank balance, including current investment is Rs. 1,252 crore. Considering the total cash and bank balance, including current investment, the net debt-to-equity ratio on standalone basis is 0.1 0.1. On consol basis, our net worth as on 30th September 26 is Rs. 7,248 crore, whereas total debt is 5,912 crore. This translates to net debt to equity of 0.82 times. The total cash and bank balance including current investment is Rs. 2,936 crore. Considering the total cash and bank balance, including current investment, the net debt equity ratio on consol basis comes to 0.4 1. With this, we now open the floor for question answer. Thank you.
Moderator: Okay. Thank you very much. Before we begin, a brief disclaimer: this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinion, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. We will now begin with the question and answer session. Anyone who wishes to ask a question may press "*" and "1" on their touchtone telephone. If you wish to remove yourself from the question queue, you may press "*" and "2". Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please, go ahead.
Shravan Shah (Dolat Capital): Hi, sir. Thank you. A couple of questions. Just one clarification before that, this 220 244 crore arbitration is not booked in the Q2 revenue?
Pankaj Agarwal (PNC Infratech Ltd): Yeah. Because, see, this arbitration just award has been made. We have yet to realize this amount. Only upon realization of amount only we consider into the revenue. Not now.
Shravan Shah (Dolat Capital): Is there any toll revenue or the the payment which is still pending for the monetization which is we have booked as part of revenue in Q2?
175 more turns of this transcript: log in to Stocksigma to read the full call.