PNC Infratech shares slip nearly 2%; brokerages cut target prices after weak Q3
JM Financial said PNC Infra's adjusted profit after tax (PAT) for Q3 FY26 came in at Rs 77.4 crore, down 6 per cent year-on-year (YoY), missing its estimate of Rs 115 crore and the consensus estimate of Rs 120 crore.
- Feb 12, 2026,
- Updated Feb 12, 2026 6:22 PM IST
Shares of PNC Infratech declined on Thursday after the company reported a weak performance for the December quarter (Q3 FY26), prompting brokerages to lower their target prices. The stock fell 1.79 per cent to close at Rs 219.70.
JM Financial said PNC Infra's adjusted profit after tax (PAT) for Q3 FY26 came in at Rs 77.4 crore, down 6 per cent year-on-year (YoY), missing its estimate of Rs 115 crore and the consensus estimate of Rs 120 crore. The miss was attributed to lower execution and higher depreciation. It noted that reported PAT stood at Rs 76.7 crore, which included an impact of Rs 70 lakh towards the new labour code.
With inflows of Rs 5,900 crore year-to-date (YTD), the company's order backlog stood at Rs 19,300 crore as of December 2025 (4.2 times trailing twelve-month revenue).
The brokerage highlighted that the company has revised its FY26 revenue guidance down to Rs 5,000 crore from Rs 5,800 crore earlier. EBITDA margin guidance has also been lowered to 12–12.5 per cent.
For FY27E, PNC Infra is targeting a revenue growth of 20 per cent to around Rs 6,300 crore, compared with its earlier estimate of about Rs 7,000 crore. JM Financial has cut its revenue and margin estimates, resulting in EPS reductions of 18 per cent, 20 per cent and 15 per cent for FY26E, FY27E and FY28E, respectively. However, it expects a 22 per cent EPS CAGR over FY25–28E.
The brokerage has revised its sum-of-the-parts (SOTP)-based target price to Rs 345 from Rs 410 earlier, valuing the EPC business at 13x FY27E EPS and assets at Rs 68 per share. It has maintained a 'BUY' rating.
Nuvama Institutional Equities noted that Q3 FY26 revenue declined 12 per cent YoY to Rs 1,060 crore, marking the eighth consecutive quarter of YoY revenue contraction, while adjusted PAT fell 6 per cent YoY. YTD order wins stood at around Rs 8,800 crore (compared with Rs 3,700 crore in FY25).
The brokerage retained its 'HOLD' rating and cut its SOTP-based target price to Rs 249 from Rs 299 earlier. The stock currently trades at 9.7x FY27E PE for the implied EPC business.
Axis Direct said management expects FY26 revenue to decline 10 per cent, with EBITDA margins of 12–12.5 per cent and order inflows of Rs 10,000–12,000 crore. For FY27, revenue growth of 20–25 per cent is projected. The brokerage reduced its target price to Rs 240 from Rs 290 and maintained a 'HOLD' rating on the stock.
Shares of PNC Infratech declined on Thursday after the company reported a weak performance for the December quarter (Q3 FY26), prompting brokerages to lower their target prices. The stock fell 1.79 per cent to close at Rs 219.70.
JM Financial said PNC Infra's adjusted profit after tax (PAT) for Q3 FY26 came in at Rs 77.4 crore, down 6 per cent year-on-year (YoY), missing its estimate of Rs 115 crore and the consensus estimate of Rs 120 crore. The miss was attributed to lower execution and higher depreciation. It noted that reported PAT stood at Rs 76.7 crore, which included an impact of Rs 70 lakh towards the new labour code.
With inflows of Rs 5,900 crore year-to-date (YTD), the company's order backlog stood at Rs 19,300 crore as of December 2025 (4.2 times trailing twelve-month revenue).
The brokerage highlighted that the company has revised its FY26 revenue guidance down to Rs 5,000 crore from Rs 5,800 crore earlier. EBITDA margin guidance has also been lowered to 12–12.5 per cent.
For FY27E, PNC Infra is targeting a revenue growth of 20 per cent to around Rs 6,300 crore, compared with its earlier estimate of about Rs 7,000 crore. JM Financial has cut its revenue and margin estimates, resulting in EPS reductions of 18 per cent, 20 per cent and 15 per cent for FY26E, FY27E and FY28E, respectively. However, it expects a 22 per cent EPS CAGR over FY25–28E.
The brokerage has revised its sum-of-the-parts (SOTP)-based target price to Rs 345 from Rs 410 earlier, valuing the EPC business at 13x FY27E EPS and assets at Rs 68 per share. It has maintained a 'BUY' rating.
Nuvama Institutional Equities noted that Q3 FY26 revenue declined 12 per cent YoY to Rs 1,060 crore, marking the eighth consecutive quarter of YoY revenue contraction, while adjusted PAT fell 6 per cent YoY. YTD order wins stood at around Rs 8,800 crore (compared with Rs 3,700 crore in FY25).
The brokerage retained its 'HOLD' rating and cut its SOTP-based target price to Rs 249 from Rs 299 earlier. The stock currently trades at 9.7x FY27E PE for the implied EPC business.
Axis Direct said management expects FY26 revenue to decline 10 per cent, with EBITDA margins of 12–12.5 per cent and order inflows of Rs 10,000–12,000 crore. For FY27, revenue growth of 20–25 per cent is projected. The brokerage reduced its target price to Rs 240 from Rs 290 and maintained a 'HOLD' rating on the stock.