Industry Context and Developments

The highways sector showed signs of recovery in Q2 FY27 with NHAI awarding approximately 230 route kilometers of projects, compared to 107 route kilometers in Q1 FY27. Out of 54 projects identified by NHAI for awarding during the remaining FY27, 19 projects have received approval while another 17 have been appraised.

The government is considering development of approximately 51,000 kilometers of high-speed corridors across India over the next decade. Significant opportunities are emerging across railways, metro rail, freight corridors, power transmission, renewable energy & storage, mining, water resources development including drinking water supply and urban development.

Railway sector offers a robust pipeline with 514 new infrastructure projects spanning approximately 40,000 kilometers with estimated investment of over ₹8.0 lakh crore under National Rail Plan and Vision 2030.

Rising crude oil prices due to West Asia conflict have increased costs for key inputs including diesel and bitumen, straining procurement, transport, construction, and equipment operations. Though MoRTH, NHAI and AAI extended monthly price-adjustment escalation mechanism through December 31, 2026, the actual financial mitigation impact is limited.

Company Updates

On October 12, 2026, Delhi High Court granted stay on the effect of debarment orders issued by NHAI against both the Company and Concessionaire Awadh Expressway Pvt Ltd. This allows the Company to submit bids to all government authorities including NHAI, MoRTH and NHIDCL.

In July 2026, Company received Letter of Award from Airports Authority of India for EPC work of Pantnagar Airport in Uttarakhand with contract value of ₹302 crore to be executed in 24 months.

On July 31, 2026, arbitration award was published in favor of the Company for ₹244 crores in connection with EPC project of Sonauli to Gorakhpur section of NH 29E, executed for MORTH through UP PWD. This amount has not been booked in Q2 revenue as it is yet to be realized.

Subsidiary Yamuna Highways Private Limited received rating upgrade to CARE AA+ with Positive Outlook during the quarter.

Company incorporated subsidiary PNC Infratech (Kazakhstan) LLP in Republic of Kazakhstan to evaluate long-term opportunities from Kazakhstan's planned $9.8 billion (4.6 trillion tenge) road infrastructure program spanning over 3,000 kilometers over next three years.

Company submitted bid for road project in Georgia to Roads Department under Ministry of Infrastructure of Georgia in September 2026. Also pursuing opportunities in Uzbekistan and United Arab Emirates.

Operational Performance

Company's 17 fund-based project portfolio comprises 1 BOT-Toll project, 2 BOT Annuity Projects and 14 HAM projects with aggregate Bid Project Cost of over ₹17,200 Crore for HAM projects.

Out of 14 HAM projects:

  • 6 projects achieved PCOD and COD
  • 5 projects are under construction
  • For 1 project of MPRDC, financial closure documents submitted
  • For 2 newly secured NHAI projects, concession agreements signed and financial closure in progress

Total equity investment requirement for 14 HAM projects is ₹2,125 crore. Till September 2026, Company infused ₹1,212 crores with remaining equity of ₹913.0 crores to be invested over next two to three years. Internal accruals expected to be adequate to meet balance equity requirement.

Order Book Status

Unexecuted order book, including two new NHAI HAM projects, stands at over ₹18,000 crores. Highway contracts contribute 63% of total unexecuted order book, while water, canal, railway and airport contracts contribute around 21%, and coal mining contract contributes 16%.

Company submitted 17 bids to different authorities for total estimated cost of ₹16,600 crore, price bids of which are yet to be opened. Identified 80 projects comprising 35 EPC projects, 25 HAM projects, and 20 BOT Toll and TBCB projects with combined estimated value of approximately ₹180,000 crores.

Financial Performance Q2 FY27

Standalone Results:

  • Revenue: ₹1,146 crore (17% YoY growth from ₹983 crore in Q2 FY26)
  • EBITDA: ₹138 crore
  • EBITDA Margin: 12.1%
  • PAT: ₹73 crore
  • PAT Margin: 6.3%

Standalone H1 FY27 Results:

  • Revenue: ₹2,664 crore (26% YoY growth from ₹2,119 crore in H1 FY26)
  • EBITDA: ₹513 crore (85% YoY growth from ₹277 crore in H1 FY26)
  • EBITDA Margin: 19.2%
  • PAT: ₹343 crore
  • PAT Margin: 12.9%

Consolidated Results:

  • Q2 Revenue: ₹1,322 crores (17% YoY growth from ₹1,128 crore)
  • Q2 EBITDA: ₹279 crore (10% YoY growth from ₹253 crore)
  • Q2 EBITDA Margin: 21.1%
  • Q2 PAT: ₹115 crore
  • Q2 PAT Margin: 8.7%
  • H1 Revenue: ₹3,011 crores (18% YoY growth from ₹2,550 crore)
  • H1 EBITDA: ₹802 crore (29% YoY growth from ₹620 crore)
  • H1 EBITDA Margin: 26.6%
  • H1 PAT: ₹447 crore
  • H1 PAT Margin: 14.8%

Balance Sheet Position

Standalone (as of September 30, 2026):

  • Net Worth: ₹6,143 crores
  • Debt from Banks/Financial Institutions and Intra Corporate Deposits: ₹1,312 crores
  • Net Debt to Equity: 0.21 times
  • Cash & Bank Balance including Current Investments: ₹1,252 crores
  • Net Debt-Equity Ratio (including cash): 0.10

Consolidated (as of September 30, 2026):

  • Net Worth: ₹7,248 crores
  • Total Debt: ₹5,912 crores
  • Net Debt to Equity: 0.82 times
  • Cash & Bank Balance including Current Investments: ₹2,936 crores
  • Net Debt-Equity Ratio (including cash): 0.41

Key Financial Metrics

  • Retention Money: ₹272 crores
  • Mobilization Advance: ₹58 crores
  • Unbilled Revenue: ₹490 crores
  • HAM Debtors: ₹418 crores
  • Water Debtors: ₹786 crores
  • Cash in PNC Infra Holdings: ₹1,115 crores
  • Total Monetization Proceeds from 12 Assets: ₹2,517 crores (₹158 crores yet to be received)

Project Guidance Updates

FY27 Revenue Guidance: Maintained at ₹6,000 crores (includes ₹217 crores arbitration award)

FY28 Revenue Guidance: Maintained at ₹7,500 crores

EBITDA Margin Guidance: Maintained at 12% on ₹5,800 crores revenue (excluding arbitration claim)

Order Inflow Guidance: Maintained at ₹12,000-15,000 crores for FY27

Sector-wise Revenue Guidance:

  • Coal Mining: ₹350-400 crores (previously ₹500 crores)
  • Water Projects: ₹650 crores (previously ₹750 crores)
  • FY28 Coal Mining: ₹500 crores
  • FY28 Water Projects: ₹1,000 crores

Equity Investment Schedule:

  • FY28: ₹460 crores
  • FY29: Balance of ₹913 crores total requirement

Capex Guidance:

  • FY27: ₹200 crores (₹155 crores already spent in H1)
  • FY28: ₹150 crores

BESS Project Update

The ₹2,000 crore BESS project awarded by NHPC could not proceed as NHPC failed to sign Power Sale Agreement with DISCOMs within one year stipulated time from date of award. Company sought extension till September 30, 2026, but agreements could not be signed. Company exited the project without any financial liability. ₹80 crores of work done during Q2 will be reimbursed by NHPC.

Legal Proceedings

Next hearing date for NHAI debarment case is November 26, 2026. Company has filed writ petition seeking quashing of debarment orders. No penalties imposed by NHAI as defects were rectified within stipulated timeline. No recovery made for toll loss. Expenditure on repairs and rectification was minimal.

International Expansion

Company focusing on non-fund-based EPC projects internationally, primarily in road sector. Preference given to projects funded by World Bank and ADB for continuous fund flow. Pursuing opportunities in Kazakhstan, Georgia, Uzbekistan and UAE with local partnerships for support.