PNC Infratech Q2 FY27 results: net profit down 46.8% to ₹114.68 crore, revenue up 17.3%

How did PNC Infratech perform in Q2 FY27?

Consolidated revenue for Q2 FY27 was ₹1,322 crore, compared with ₹1,128 crore in Q2 FY26 and ₹1,688 crore in Q1 FY27. EBITDA was ₹278.84 crore, up from ₹253.02 crore a year earlier but below ₹523.53 crore in the previous quarter. The EBITDA margin was 21.1%, against 22.4% in Q2 FY26 and 31.0% in Q1 FY27.

Profit before tax was ₹157.52 crore, down from ₹292.41 crore in Q2 FY26 and ₹431.55 crore in Q1 FY27. After tax of ₹42.84 crore, PAT was ₹114.68 crore and basic EPS was ₹4.47. Standalone revenue was ₹1,145.6 crore, standalone PAT was ₹72.57 crore, and profit before tax was ₹86.2 crore.

What changed in PNC Infratech's costs and profit?

Against Q2 FY26, total expenses rose ₹188.16 crore to ₹1,218 crore. Cost of materials was higher by ₹143.08 crore at ₹824.45 crore, employee cost rose ₹14.46 crore to ₹97 crore, finance costs rose ₹4.27 crore to ₹133.67 crore, depreciation rose ₹14.86 crore to ₹40.45 crore, and other expenses increased ₹11.48 crore to ₹122.18 crore.

Other income increased ₹21.30 crore to ₹52.80 crore. Q2 FY26 included an exceptional gain of ₹162.86 crore, while Q2 FY27 had no exceptional item. Tax expense fell ₹33.87 crore to ₹42.84 crore, but PAT declined ₹101.02 crore because of the higher expenses and the absence of the year-ago exceptional gain.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹3,010.93 crore, up 18.1% from ₹2,550.44 crore in H1 FY26. Total income rose 20.0% to ₹3,134.79 crore, while EBITDA was ₹802 crore, up 29% from ₹620 crore, and the EBITDA margin was 26.6% against 24.3%.

Profit before tax fell 25.8% to ₹589.07 crore from ₹794.25 crore, and PAT declined 31.0% to ₹446.61 crore from ₹647.02 crore. Basic EPS was ₹17.41, compared with ₹25.22 in H1 FY26. The investor presentation showed profit before tax before exceptional items was ₹589 crore, compared with ₹310 crore in H1 FY26.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹14,763.12 crore, compared with ₹13,858.12 crore as of 31 March 2026. Total equity rose to ₹7,248.06 crore from ₹6,812.97 crore, while borrowings increased to ₹5,911.83 crore from ₹5,150.85 crore. Cash and cash equivalents fell to ₹559.27 crore from ₹871.27 crore.

Inventories rose to ₹981.24 crore from ₹761.26 crore, while trade receivables declined to ₹1,429.99 crore from ₹1,509.14 crore. Trade payables fell to ₹531.55 crore from ₹789.82 crore. In H1 FY27, operating cash flow was negative ₹377.77 crore, compared with ₹4,189.06 crore in H1 FY26; investing cash flow was negative ₹419.78 crore, financing cash flow was ₹485.56 crore, and capital expenditure was ₹158.89 crore.

How has PNC Infratech done over the last 8 quarters?

Revenue rose year on year in each of the last two quarters. Across the reported period, revenue reached its highest level in Q1 FY27 at ₹1,688.46 crore and its lowest in Q2 FY26 at ₹1,127.64 crore. Q2 FY27 revenue was ₹1,322.47 crore, lower than the preceding quarter but higher than the year-ago quarter.

PAT peaked at ₹431.32 crore in Q1 FY26 and bottomed at ₹75.44 crore in Q4 FY25. It was ₹114.68 crore in Q2 FY27, below the previous quarter and the year-ago quarter. The EBITDA margin reached its high of 31.0% in Q1 FY27 and low of 17.1% in Q4 FY26, before easing to 21.1% in Q2 FY27.

Which businesses drove the quarter?

Road revenue was ₹1,021.8 crore, up 24.5% from ₹820.61 crore in Q2 FY26, while segment EBIT was ₹87.83 crore compared with ₹87.78 crore. The reported EBIT margin was 8.6%.

Water revenue was ₹123.59 crore, down 5.8% from ₹131.17 crore, with EBIT of ₹15.57 crore against ₹20.4 crore. Toll and annuity revenue was ₹177.09 crore, up 0.7% from ₹175.86 crore, while EBIT rose to ₹134.98 crore from ₹119.25 crore; the reported EBIT margin was 76.2%.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 28 October 2026. It also approved and took on record the limited review report issued by NSBP & Co., the company’s statutory auditors.

The company filed its Q2 FY27 investor presentation on 29 October 2026, which stated an order book of ₹14,871 crore. The presentation also said the company incorporated PNC Infratech (Kazakhstan) LLP to provide infrastructure services in Kazakhstan, particularly in the roads and highways sector. No dividend, fund raise or appointment was reported in the same-day filings.

What did the auditors point out?

NSBP & Co. said nothing had come to its attention that caused it to believe the statement did not disclose information required under the Listing Regulations or contained a material misstatement. The review was conducted under SRE 2410 and is substantially less in scope than an audit, so the auditors did not express an audit opinion.

The auditors included an Emphasis of Matter noting that NHAI had debarred the company’s SPV Awadh Expressways Private Limited on 3 September 2026 and subsequently the company on 11 September 2026 from bidding with NHAI/MoRTH for three years, citing alleged contractual dispute and structural defects involving a package of the Kanpur-Lucknow Expressways project. The auditors said the Delhi High Court stayed the debarment order on 13 October 2026 and that their conclusion was not modified in respect of this matter.

What did PNC Infratech's management say?

Management lowered FY27 coal revenue guidance to ₹350–400 crore and water revenue guidance to about ₹650 crore. It said the NHPC BESS letter of award was cancelled, the bid security was refunded, and the project was excluded from the order book. The order book was above ₹18,000 crore, including ₹16,600 crore of pending bids.

Management identified input-cost inflation from crude oil, diesel and bitumen, partial escalation coverage, unresolved NHAI debarment, delayed coal execution and lagged water collections as risks. It said the next court hearing on the debarment was scheduled for 26 November 2026 and that ₹913 crore of HAM equity remained to be invested over the next two to three years.

Managing Director Yogesh Jain said the monthly price-adjustment escalation mechanism had been extended through 31 December 2026, but its financial mitigation was effective only to a limited extent. Director–Infra T. R. Rao said highways would remain the core focus while the company expanded into other sectors to build a broader, more resilient order book.

How did PNC Infratech shares react?

The filing was released after market hours from a pre-results close of ₹134.50. On the reaction day, the stock closed 0.4% lower; it was down 1.5% after five minutes and unchanged after 15 minutes. By the next day’s close, it was 8.7% lower from the pre-results close, against a 1.1% decline for the other Civil Construction stocks.

How did other Civil Construction companies do?

Eighteen other Civil Construction companies had filed for the quarter by 4 November 2026, with a median revenue growth of 8.5%. Eleven peers grew revenue more slowly than PNC Infratech, while seven grew faster. Of 19 peers for which profit was compared, 15 reported higher profit.