PNC Infratech shares plunge 20%, biggest single-day fall in 2 yrs after NHAI debarment

Shares of PNC Infratech hit the 20% lower circuit to touch their 52-week low on Tuesday, after the infrastructure development firm was debarred from bidding for projects of the National Highways Authority of India (NHAI) and the Ministry of Road Transport and Highways (MoRTH) for three years.

Reacting to the news, PNC Infratech shares plunged 20% to touch a fresh 52-week low of ₹140.40 on the BSE. The counter witnessed strong volume, with 2.87 lakh shares changing hands, compared with its two-week average of 0.58 lakh shares. Its market capitalisation slipped to ₹3,602 crore.

This is the biggest single-day fall in PNC Infratech shares since October 21, 2024, when the stock also declined 20%.

At the current level, PNC Infratech shares are down 57% from their 52-week high of ₹325.15, touched on September 17, 2025.

The infrastructure stock’s sharp decline came after NHAI extended the debarment of PNC Infratech, citing issues related to structural distress reported on the Kanpur-Lucknow Expressway Package-II. The company received NHAI’s communication on September 11.

The debarment is a major setback for the company, given NHAI’s importance to its order pipeline and road construction business. PNC Infratech will not be able to participate in bids floated by NHAI, MoRTH and their executing agencies during the three-year debarment period.

What PNC Infratech said

In a regulatory filing, PNC Infratech said it received a letter from NHAI on September 11 extending the debarment of the concessionaire to the company, being its promoter, for a period of three years. The company said it is evaluating legal remedies in the matter.

PNC Infratech said the debarment will prevent it from participating in bids floated by NHAI, MoRTH and their executing agencies for three years. However, it said the development will not affect its status as a going concern or the execution, operation and maintenance of its ongoing projects.

The company added that it will disclose any financial implications, if any, in due course as clarity emerges.

Earlier on May 12, the infrastructure company had informed the exchanges that it had executed a settlement agreement with NHAI for a one-time settlement of ₹234.99 crore in connection with the Agra Bypass Project under the Vivad-se-Vishwas III (Contractual Disputes) Scheme.

According to Elara Securities, PNC Infratech exited FY26 with an unexecuted order book of around ₹18,100 crore, providing book-to-bill visibility of 3.9 times, as HAM projects commenced and Maharashtra road packages continued to ramp up.

The brokerage noted that the company is gradually diversifying beyond roads, with mining execution scaling up and solar and battery energy storage system (BESS) projects expected to start contributing from FY27. The combined solar and BESS portfolio stands at around ₹5,000 crore.

Management has set an order inflow target of around ₹15,000 crore for FY27, of which ₹4,000 crore has already been secured, including ₹2,000 crore from solar and BESS projects, Elara Securities said.

Last month, PNC Infratech reported a 23% year-on-year decline in net profit to ₹331.95 crore for the first quarter of FY27, compared with ₹431.41 crore in the corresponding period a year earlier. Revenue, however, rose 19% year-on-year to ₹1,688.46 crore from ₹1,422.80 crore. EBITDA increased 42% to ₹523.53 crore from ₹367.43 crore, while the EBITDA margin expanded to 31% from 25.8% a year ago.

The company has set September 23, 2026, as the record date for determining shareholders’ eligibility for the final dividend for FY26.

So far in FY27, PNC Infratech has won five new projects, including two HAM projects from NHAI and three EPC projects from the Airports Authority of India and other government authorities. The combined value of these orders stands at ₹4,259 crore.

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