PNC Infratech stock rating downgraded to Hold by ICICI Securities

Published 18/08/2025, 11:06
PNC Infratech stock rating downgraded to Hold by ICICI Securities

Investing.com - ICICI Securities downgraded PNC Infratech Ltd. (PNCL:IN) from Add to Hold and lowered its price target to INR310.00 from INR322.00 on Monday.

The downgrade follows PNC Infratech’s weak Q1FY26 performance, with revenue declining 13% year-over-year to INR11.4 billion, EBITDA falling 11% to INR1.4 billion, and profit after tax dropping 15% to INR0.8 billion.

While the company’s order book increased to INR171 billion, representing 3.5 times trailing twelve-month revenue, approximately 43% of these orders have yet to receive appointed dates, reducing the executable backlog to INR107 billion.

ICICI Securities expressed concern about PNC Infratech’s entry into renewable energy assets and mining orders worth INR50 billion, noting the company lacks execution history in these areas, which heightens risk.

Management expects appointed dates for INR30 billion in Q2/Q3 and projects INR10 billion in revenue from these new projects to support its 15-20% growth guidance, but ICICI Securities indicated Q1 trends suggest a potential shortfall unless execution improves.

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