Whalesbook
PNC Infratech reported slower-than-expected revenue growth in its fourth quarter for fiscal year 2026. Revenue increased by just 3% year-on-year to INR14.6 billion, missing targets from both Prabhudas Lilladher and the general market by about 15%. The company cited project execution slowdowns and delays in receiving appointed dates as the main reasons. In the full fiscal year 2026, PNC Infratech secured INR49 billion in new orders, not including its solar EPC projects.
Order Momentum Accelerates
Despite the quarterly performance challenges, the company has seen a significant pickup in order momentum in the first quarter of fiscal year 2027. PNC Infratech currently has about INR40 billion in projects at the L1 stage, indicating a strong pipeline of potential new business. Management projects further inflows of INR110 billion for the rest of FY27. The company's active order book, after accounting for any stalled projects, stands at a healthy INR150 billion. This is roughly three times its revenue over the past twelve months and is well-diversified, with over 60% in road projects, alongside water, mining, and other emerging business areas.
Growth Projections and Stock Valuation
Looking ahead, management forecasts substantial revenue growth, targeting 30% for FY27 and 25% for FY28. Achieving the FY27 goal depends on securing timely power purchase agreements and financial closure for its solar projects. Based on this outlook, Prabhudas Lilladher has reaffirmed its 'BUY' rating on PNC Infratech shares, setting a price target of INR253. The brokerage firm's confidence stems from the company's solid financial position, currently holding net cash, and its appealing stock valuation. PNC Infratech shares are trading at about 11 times estimated FY28 earnings and 0.8 times its book value.