PNC Infratech shares surged 11% after Nuvama raised its target price to ₹286 from ₹281, retaining a ‘HOLD’ rating. As of 10:49 AM, the shares were trading 10.66% higher at Rs 315.60.
The company reported a 31% year-on-year (YoY) decline in Q4FY25 revenue at ₹14.1 billion, with EBITDA margins dropping 70 basis points to 12.4%. Adjusted PAT also fell 34% YoY. Despite weak operating performance, the order book remains healthy at around ₹178 billion, supported by a book-to-bill ratio of 3.5x. PNC won ₹67 billion worth of orders in FY25 and aims for ₹150 billion in new orders in FY26, targeting 20% revenue growth and 13% EBITDA margins.
A key positive factor is the ongoing asset monetisation strategy. PNC has completed the sale of ten HAM projects for about ₹18.3 billion, receiving ₹16.7 billion so far, with the balance pending contractual clearances. This sale will result in a pre-tax capital gain of ₹4.6 billion and post-tax gains of ₹4 billion. The company plans to sell two more projects in H1FY26 valued at ₹6.3 billion. These divestments are improving PNC’s balance sheet and increasing other income, prompting upward revisions in FY26 and FY27 EPS estimates by 14% and 12%, respectively.
While the operating challenges persist, improving financial health and asset sales support a stable outlook for PNC Infratech. Investors should watch for order inflows and execution progress in the coming quarters.
