Ladies and gentlemen, good day and welcome to the PNC Infratech Limited Q2 FY 2026 earnings conference call hosted by Phillip Capital India Private Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vikram Suryavanshi. Thank you, and over to you, sir.
Thank you, Anushka. Good afternoon and a very warm welcome to everyone. On behalf of Phillip Capital, I'm pleased to welcome you all on the PNC Infratech Limited second quarter FY 2026 earnings call. We have with us the Managing Director of the company, Mr. Yogesh Jain, along with Mr. D. K. Agarwal, Chief Financial Officer, and Mr. Pankaj Agarwal, Vice President. We'll begin with the opening remarks from the management, followed by interactive question-and-answer session. Over to you, sir.
Good afternoon, everyone. On behalf of PNC Infratech Limited, I extend a very warm welcome to everyone for joining us today on this call. Today, I have with me Mr. T. R. Rao, Director Infra, and Mr. D. K. Agarwal, CFO, Mr. Pankaj Agarwal, VP F&A, and Strategic Growth Advisor, our Investor Relations Advisors. The financial results and investor presentations have been uploaded on the stock exchange and the company website for your reference. Initially, I would like to mention the key updates of the industry, followed by the operational development of the company and highlights of the financial performance during the quarter and half-year ending 30 September 2025, post which we will be happy to answer your questions.
In quarter two, financial year 2026, the road infrastructure sector reported modest performance, with project execution remaining subdued as construction activity declined to 644 km, down from 802 km in the corresponding period last year, mainly due to very subdued project awarding activity by the authority over the past two and a half years and widespread intense and prolonged monsoon across the nation this year. NHAI has set an ambitious target of 6,300 km length of new projects awarded for financial year 2026, which is expected to generate substantial new business for the industry players going forward. As NHAI launched a huge new project pipeline comprising over 120 projects to be implemented on EPC, HAM, DBFOT formats with an estimated capital cost of INR 3 lakh crore.
The whole industry is looking for a speedy conversion of this pipeline into awarding for turnaround of the sector and to create a strong execution visibility from financial year 2027 onwards. The tightening of RFP norms to improve the quality and speed of project execution, including stricter qualification criteria and more accountability on performance, are expected to ensure projects are awarded to only credible construction firms with proven technical and financial competence. In the water sector, Jal Jeevan Mission moved significantly closer to realizing the government Ahargarh Jal vision, driven by rapid network expansion, use of digital monitoring systems, and active participation from local communities. This development will generate robust O&M revenue streams to the firms executed to the capital works over the next 10 years.
Various zones of Indian Railways, different subsidiaries of Coal India, and various undertakings of the Union Power Ministry are coming out with a large number of new projects in track construction, coal mining, power transmission, and renewable energy for bidding, which provided promising business opportunities for infra players. Now coming to the recent updates on the company, our subsidiary, Jamuna Highways Private Limited, has received the provisional completion certificate for the Mathura 1B HAM project in Uttar Pradesh on 15th September 2025, declaring it fit for entry into commercial operation with effect from 30th August 2025. In quarter two, financial year 2026, the company received an early completion bonus of INR 5.08 crore for the Mathura 1C project received during quarter two.
During quarter two, financial year 2026, the company received three letters of award, one from Bihar State Road Development Corporation for high-level bridge construction on high-level bridges, along with an approach road on Hathuri Ori in Bihar, second from the Airports Authority of India for the development of Varanasi International Airport, and third from NHPC for the solar power com-base projects. The company has received appointed dates for three HAM projects: Varanasi, Kolkata Highway packages two, three, and six. During the quarter, the company also received appointed dates for the EPC project in Rajasthan for the construction of a flyover in Bharatpur city. I am happy to share that during the quarter, the credit rating of four of the company's subsidiaries has been upgraded significantly. Aatharas Highway upgraded from CRISIL A to CRISIL AA Plus. Hardooi Highways upgraded from CRISIL A to CRISIL AA Plus.
Jamuna Highways upgraded from KR Signal A to KR AA. Awadh Expressway upgraded from KR Signal A to KR AA Plus. Moving on to the operation and financial performance of the company. The company's 16 fund-based projects comprise one BOT toll project, two BOT NOT projects, and 13 HAM projects. The aggregate bid project cost of 13 projects is over INR 14,800 crore. Out of 13 projects, four projects achieved PCOD and COD. Eight projects are under construction. Remaining one HAM project of MPRDC documents for financial closure have already been submitted. However, the declaration of appointed dates is delayed due to land and alignment issues. Total equity investment requirement for HAM projects is INR 1,744 crore. Till September 2025, the company already invested INR 1,081 crore, and the remaining equity of INR 663 crore is to be invested over the next two to three years.
Internal accruals that would be generated over the next two to three years should be adequate to meet the above equity investment requirements. Now moving on to our order book, as of September 30, 2025, the company's un-executed order book stands over INR 20,000 crore, which includes the EPC value of Bhopal Bypass HAM project of MPRDC and the newly secured high-level bridge project of BSRDC in Bihar. Highway contracts contribute around 55% of the total un-executed order book, while water canal area development and railway projects contribute around 30%, and coal mining projects contribute 15%. Now I would present the results for the quarter and half-year ended September 30, 2025. Stand-alone revenue for the second quarter of financial year 2026 is INR 983 crore. Stand-alone EBITDA for the second quarter of financial year 2026 is INR 136 crore. Stand-alone EBITDA margin for the quarter is 13.9%.
Stand-alone PAT for the second quarter of financial year 2026 is INR 86 crore. Stand-alone PAT margin for the quarter is 8.8%. Stand-alone revenue for the half-yearly of financial year 2026 is INR 2,119 crore. Stand-alone EBITDA for H1 of financial year 2025 is INR 277 crore. Stand-alone EBITDA margin for H1 of financial year 2025 is 13.1%. Stand-alone profit for H1 of financial year 2025 is INR 167 crore, and margin for H1 of 2025 is 7.9%. Consolidated revenue for the second quarter of financial year 2026 is INR 1,128 crore. Consolidated EBITDA for the second quarter of financial year 2026 is INR 253 crore. That consolidated EBITDA margin for quarter two of financial year 2026 is 22.4%. Consolidated PAT for the second quarter of financial year 2026 is INR 216 crore, and PAT margin for quarter two is 19.1%. Consolidated revenue for H1 of financial year 2026 is INR 2,550 crore.
The console EBITDA for H1 of 2026 is INR 620 crore, and margin for H1 is 24.3%. The consolidated PAT for H1 of 2026 is INR 647 crore, and console margin, PAT margin for H1 is 25.4%. Our net worth on stand-alone basis as of 30th September 2025 is INR 5,628 crore, whereas stand-alone debt from banks and financial institutions is INR 796 crore. This translates to net debt to equity of 0.14x t he total cash and bank balance, including current investment, is INR 1,203 crore. On console basis, our net worth as of 30th September 2025 is INR 6,623 crore, whereas total debt is INR 5,049 crore. This translates to net debt to equity of 0.76x . The total cash and bank balance, including current investment, is INR 2,736 crore. With this, we now open the floor for question and answer. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Shravan Shah from Dolat Capital. Please proceed.
Thank you, sir. Sir, a couple of things to understand so far on the revenue front. In the first half, the revenue at the stand-alone is 26% down, INR 2,100 crore. To achieve, we were looking at 15%-20% kind of a growth. The ask rate in the second half is significant, kind of doubling the revenue in the second half. Just wanted to know now how we can look at the revenue for this year and also at the same time for next year also how one can look at the revenue for FY 2027.
Yeah. Good afternoon, Mr. Shravan Shah. Yes, there has been a decline in the revenue during the first half when you compare to last year's revenue. As you know, even earlier also we shared with you, four HAM projects which were awarded way back in 2023, appointed dates have not been declared till now. Of course, they have been declared for one project, appointed date was declared in September, and another two projects appointed date declared in the first week of October. Otherwise, had these projects been declared appointed date, we would have achieved substantial work done during the current year as well as the previous year's second half.
Unfortunately, appointed dates got declared, and the value of these projects of EPC value itself is INR 4,000 crore. This is the main reason in the decline of the appointed date, and we never expected the appointed dates would be declared so delayed, declaration would be so delayed more than two years. That is the reason for the decline. Since now, appointed date for three out of four projects already been declared having a value of over INR 3,000 crore. These projects will generate income going forward. With regard to the guidance, what we had given, with regard to the guidance, what we had given, 15%-20% with the declaration of appointed date, delayed declaration of awarding date, and also slow awarding activity by the NHAI for the past two and a half years, what our MD has mentioned now.
Slow awarding, delay in declaration, and also, of course, though rains are a repetitive phenomenon every year, this year the monsoon also has been very active and prolonged. With all these reasons, now we are revising our guidance from 15%-20% to 5% over the previous year. That is the guidance kind of a thing. We are now currently executing more than 20 projects, precisely 24 EPC projects, having a value of more than INR 17,000 crore, including coal mining and solar projects. With that kind of a revenue visibility, the unexecuted order book is there. This 5% over the previous year, remaining work comes to around INR 3,000 crore that we should be able to achieve during the H2 of the current financial year.
Got it. Now, sir, given that the growth will be lower, as you said, 5% in this year, next year also, because on that high base, also we were looking at 15%-20% growth. FY 2027, can we see a kind of a 30% kind of a growth once all the appointed date now kind of are received and the execution will start, and maybe the kind of order inflow that we are looking at?
No, no. Certainly, we will be aspiring to achieve that kind of growth during FY 2027. As of now, since FY 2026 has not been completed and the base needs to be established, we still maintain 20% growth for FY 2027 as of now. Once some clarity emerges at what value we will be closing FY 2026, then we will revise this one. We will relook into this growth. But as of now, we would like to maintain 20% growth in FY 2027. Certainly, we'll be aspiring for 30% growth.
Got it, sir. The current 13% margin is doable?
It should be. 12.5%-13% margin should be doable in the current financial year. Next year also, it will be around 13% margin should be there.
In terms of now, the order inflow, that's the main pain point for the entire sector. I wanted to understand, though in the opening remarks, Sawhney has talked about the significant value, 6,300 km of NHAI, INR 3 lakh crore, all this. Actually, how do you see in terms of because so many kind of a cabinet of land acquisition and all this, what we understand is 2,500 km to maybe 3,000 km. Just wanted to understand how much value of work from NHAI can be awarded and how much order inflow now we are looking at. If you can also specify in terms of the HAM specifically and what are other state level or other segments where we are looking at and broadly how much the total order inflow now we are looking at.
We had mentioned in the beginning of the year and the last quarter of the last year, our order book for FY 2026 would be between INR 12,000 crores- INR 15,000 crores. We still maintain the same kind of guidance for FY 2026. That means around another INR 6,000 plus order book we need to secure, new business we need to secure. Given the project pipeline of NHAI and other departments, we have identified around 70 projects we have identified for bidding during the next one and a half to two months, comprising an aggregate value of INR 1 trillion. With this kind of a bidding pipeline available, we expect that we should be able to achieve another INR 6,000 crore plus new orders during the remaining four and a half months of the current financial year.
Okay. Great. There also mostly it would be a HAM.
No . In case of NHAI, it would be HAM. In case of other clients, it would be mostly EPC. EPC as well as PVC.
Okay. Got it. Just on the JGM front, how do we see the particular JGM and the irrigation one, so how much revenue can we look at in this year and when can we see both the projects to be fully completed?
See, under JGM, in the first half, we achieved INR 2.35 crores billion apart from certain revenue from the irrigation project. We still maintain INR 9.00 billion from the JGM and irrigation for FY 2026. Same kind of revenue. We are still maintaining our guidance of INR 9.00 billion. Going forward, we are pursuing opportunities in both sectors also. JGM, we do not see further new projects will be coming in a major way. In the water resource department sector, many projects are coming by different state governments. We are pursuing those opportunities.
Okay, sir. Thank you and all the best.
Thank you. We take the next question from the line of Ketan Jain from Evenders Park. Please proceed.
Thank you. Good evening, sir. What is the order inflow so far till date in FY 2026?
INR 6,000 crore.
This includes the flyover projects, but not the mining and the BHS projects.
This includes coal mining. This includes flyover Bharatpur. This includes high-level bridge in Bihar. This includes Varanasi airport project and solar power also.
Understood. We do not have any L1 orders right now, right?
No. As of now, we do not have any L1 orders. Wherever we issued L1, we received the letters of award.
Unde Understood. Thank you. I will get back to you. Thank you. Thank you.
Thank you. Thank you. We take the next question from the line of Aditya Sahu from HDFC Securities. Please proceed.
Hi. I hope I am audible.
Yeah . You are audible. Yeah.
Thanks a lot for the opportunity. I wanted to understand. In the asset monetization space, I think we have monetized 11 assets, 11 HAM assets, and we have one state that is pending. Do correct me if I'm wrong.
Yes . No, no. The current position is that out of 12 assets, 11 assets we monetized, including the state asset. The state asset, state ID asset, we monetized in Q2. Okay. Now only one HAM asset of NHAI is pending for which we have received the final approval for the change of control. We received it. In fact, we received today.
This also, we are sort of selling it to Highway Infrastructure Trust?
Yes, yes. Because it is a part of the master security purchase agreement we executed last year.
Understood. This one asset that is pending, what would be the equity invested? Because I think you have mentioned equity invested and the consideration for 11 assets. This one particular asset which is pending, what would be the equity invested and the consideration that you're expecting from this asset?
Equity invested is INR 114 crore.
Okay. Understood. And the consideration would be, do we have that or?
Enterprise value consideration is around INR 630 crore.
Understood. And on the CapEx part, what is the CapEx that we have done in H1 and what are we expecting for the balance H2 and 2027 for that matter?
As a total CapEx, up to September 30 is INR 121 crore, and we are expecting that around INR 200 crore CapEx will be done in the total financial year 2026. Okay. So 200 is overall.
Yes. Understood, sir. And sir, I may be repeating the setting you have mentioned. The total equity investment for the 13 projects, if you could repeat that, and how much have we infused till date?
Total equity was INR 1,744 crore. Out of that, the balance equity is INR 663 crore, which is yet to be infused.
Understood, sir. Understood. Thanks a lot for the entertaining question. Thank you.
Thank you. We take the next question from the line of Divyansh Agarwal from Iconic Asset Manager. Please proceed.
Hello. Am I audible?
Yeah, yeah. You are audible.
Yeah. Wanted to understand, once again, a couple of reasons. Firstly, why have we cut the guidance? Secondly, what has been main core reasons why we have not seen revenue grow? What are the few things we are looking which will help to grow in Q3, Q4?
See, as you had mentioned in response to another question by another person, the primary reason for the decline in the turnover as well as revising on a downside, the guidance, is because the delayed appointed dates for four major HAM projects having a revenue potential of more than INR 4,000 crore. These HAM projects were awarded way back in 2023, middle of 2023. Appointed dates got delayed by more than two years. Had the appointed date been declared earlier, we would have achieved certain revenue in the current year as well as last H2 of the previous year, but we could not do it. That is the main reason for the decline in turnover. Second thing, for the last two and a half years, the awarding activity of NHAI is very subdued. It was very subdued.
The new projects are not forthcoming from NHAI, and our projects which are coming are very, very smaller-sized projects are coming, which is kind of a very unhealthy competition. That is another reason that we could not ship to many major projects during the last two years, particularly from NHAI. We revised the guidance to be more realistic this year. Going forward, out of four HAM projects, for three HAM projects, appointed dates have been declared during the month of September and October. Now we are having an executed order book for the ongoing project itself of over INR 17,000 crore. Going forward, the growth will be increased, and we'll have a significant growth in FY 2027 over FY 2026.
Sir, just one last question from my end. Sir, with respect to order book, what are we targeting for these next two quarters and for FY 2027? How much orders have we bid for, and approximately what might be the success ratio in that?
See, as of now, we have submitted 17 bids for an aggregate estimated cost of INR 17,000 crore till yesterday. Nineteen bids we have submitted for INR 17,000 crore of this thing. Out of these 19 bids, 16 bids are EPC, and 3 bids are HAM. In fact, we have submitted 2 more bids today, but that will not include. These bids, we are hopeful getting at least if we get even 20% of this one, then we will be getting around INR 3,000 crore worth of projects. Further, we identified opportunities of bidding opportunities for 76 projects precisely, which are to be bid in the next one and a half to two months with an aggregate value of over INR 100,000 crore. There also, even if you consider modestly of 3%-5%, then still we'll have a INR 3,000-5,000 crore plus INR 3,000. We are expecting another INR 6,000+ new orders, INR 6,000+ crore new orders before end of the current financial year.
Got it. Thank you so much, sir.
Thank you. We take the next question from the line of Aniket Madhvani from Steptrade Capital. Please proceed.
Yeah. Hi, sir. Are you audible?
yes. We are audible.
My first question is, in Q1, here I can see JGM receivables were around INR 700,000 crore due to the central funding hold, right? Have those payments been released in Q2? And what's the current receivable position? The total receivables for JGM project as of Q2 is around INR 800 crore.
What is the next question?
My question was with regards to the order book. Is it INR 17,000 order book current or INR 20,000 unexecuted?
Unexecuted order book is INR 20,000. Out of that, INR 17,000 crore projects for which appointed dates have been declared or which are inactive. One project of MPRDC, that is still because of land issues, what you had mentioned, one HAM project of MPRDC, that is the Western Bhopal bypass. There are certain land issues, so appointed date has not been declared. For another project, we are not executing the work due to legal issues.
As you mentioned, you will be closing around INR 5,000 top line in FY 2026, right?
Yes. INR 5,000 plus top line in FY 2026. Yeah.
Could you give us some colors on the revenue bifurcation you are expecting by FY 2026 from this INR 5,000 crore? How much it will be from highways? How much it will be from water?
See, for FY 2026?
Yeah, FY 2026.
See, FY 2026, we are expecting from water and irrigation sector, FY 2026. Remaining amount would be from the highways and other projects.
Sorry, you can repeat what you just said?
See, in FY 2026, we are expecting total INR 900 crore turnover from water, drinking water supply, and irrigation projects. And the remaining INR 4,000 plus crore from highways and other projects, including coal mining.
Including coal mining. Thank you.
Thank you. Before we proceed with the next question, a reminder to the participants. In order to ask a question, you may press star and one on your touchstone telephone. We take the next question from the line of Vaibhav Shah from JM Financial. Please proceed.
Yeah. Sir, on the guidance front, our revenue for FY 2025 was INR 5,500 crore. You mentioned a 5% growth. Is it a 5,500 base or a 5,100 base? Can you provide actual number for 2026?
As of now, we are taking 5,500 as the base.
It should be somewhere around INR 5,800 crore.
Yeah.
Okay . Secondly, when do we expect to receive the AD for MPRDC HAM?
There are issues. The land and alignment issues are still persisting. There is a bit of uncertainty for the turn. We would not be able to share what would be the likely appointed date. Going forward, we should be able to share in Q3 when we meet after Q3.
Should it likely come at least by March 2026?
We are hoping so.
Okay . Secondly, on the CapEx front, we had earlier guidance of INR 400 crore. Now we reduced it to INR 200 crore. Can 2027 be a bump up in terms of CapEx?
Actually, we have given the guidance of INR 400 crore for the coal project. Out of that, we are planning to meet the CapEx in this financial year, which is around INR 200 crore. The rest will be done in the next financial year.
Total CapEx for 2026 will be INR 200 crore?
Will be INR 200 crore.
For 2027?
2027, around INR 250 crore.
Okay . Sir, lastly, when do we expect to start the execution for mining and BESS order?
Mining, we have already started the execution. Physical execution is underway.
Okay . Sir, just one clarification. Yeah, please. On BESS order?
BESS order, we are doing the preliminary work. The procurement process will start in Q4.
Okay . Sir, any equity requirement for the T&D order? What would be the value?
For the solar cum BESS project you are talking about?
For the BESS project, yes.
See, equity requirement, see, we have to. It would be around INR 400 crore. It would be around INR 400 crore, subject to finalization of the financial package and discussions with the banks.
Okay, sir, so incrementally, the infusion in these HAM assets and the BESS assets, since the entire, largely the gain has been booked in the subsidiary of the monetization, so a large part of money is in the subsidiary. Incrementally, how do we plan to invest the money in these assets? It will be partly from the subsidiary and partly from the standalone entity.
It seems like the line for the management has got disconnected. Please stay connected till I rejoin the management. Sure. Thank you for waiting patiently. The management's line has been connected. You can go ahead with your question. From the management's line?
Yeah. Yes, madam.
Yes, sir. You have been connected on the main call. You can give the answer. Yeah. Vebhav sir was asking a question.
Can you repeat the q uestion? No, you have the answer.
Okay, we can ask Vebhav to rejoin the queue. Till then, I'll take the next question. We take the next question from the line of Shravan Shah from Dolat Capital. Please proceed.
Hi. Thank you for the opportunity. Sir, still just wanted a clarification. Sir, when we are saying a 5% growth over INR 5,500 crore of FY 2025 revenue, that comes INR 5,800 crore. That means in the second half, we need to do INR 3,700 crore kind of a revenue. Kind of a INR 1,800 crore kind of a run rate quarterly. Do we think, and if the third quarter is on the lower side than the fourth quarter, needs to be a kind of a significantly higher? Just trying to understand, is this the number that we are looking at? Or is there a possibility that this number can go down?
See, as of now, we are looking at the similar kind of thing. As the now appointed dates have declared, the progress is ramping up. See, third quarter number would be lesser than the fourth quarter number. Overall, we are looking at 5% of the thing. Given all the appointed dates have been declared, until unless there is any adverse kind of a thing, development and unexpected thing, we should be able to meet this 5% target.
Okay, got it. Second, sir, we were supposed to get a INR 14 crore bonus on Hardooi Highways project. When will we be receiving and booking in P&L?
We'll be booking in P&L in Q3. The approval process is underway. Once it's approved by NHAI Apex body, we'll be receiving during Q3 INR 14.18 crore. Sir, we already received INR 5.8 crore for the other sites.
Yeah . Got it. Sir, can you provide the breakup of this INR 663 crore equity that is to be invested? Since second half, how much in 2027 and 2028?
Just a minute. The total equity which is required to be invested is INR 663 crore. Out of that, around INR 100 crore should be invested in this current financial year. The balance will be in 2027 and 2028. That would be, so INR 553 crore is left by end of FY 2026. So roughly INR 250 crore would be in FY2027? You can say. You can say just like this .
In BSS, out of INR 400 crore, till now, how much have we invested in financial year 2026 balance second half? How much in financial year 2027 h ow much?
Out of INR 400 crore, we have not invested any amount in that INR 400 crore. That hopefully will be invested in financial year 2027 and 2028.
No equity in the second half of financial year 2026?
Yes .
Okay, got it. Just another clarification. This is the entire monetization of 12 assets. You said the left one is the INR 114 crore equity we have invested. Against that, how much equity will we be getting?
The enterprise value of that project is INR 630 crore. Out of that, the outstanding loan will be paid and the balance will be contributed to the equity.
The debt is how much?
The original debt was INR 394 crore.
INR 394 crore. Okay. Around INR 230 crore kind of equity that we will be getting against the INR 114 crore of the original invested?
Ye s.
Okay. The total till now, how much we have received of whatever the 11 projects and what is still because there were some INR 200 crore that was supposed to be received?
For the 11 asset, the net receivable net of debt was INR 2,200 crore which we have received.
Okay. The entire money has been received?
Yes. The entire money has been received. Out of INR 200 crore, some money has received in this quarter, which is around INR 38 crore. The balance will be received as and when received from NHAI on best-to-best basis.
Okay . Got it. If we look at this JJM project, how can one look at it in terms of the payment issues, in terms of the completion, when will it be? Around INR 2,750 crore is left. How can one look at it? Will even FY 2029 be possible for completion, or does it depend on when the payment will come? Accordingly, we will keep on doing the execution.
No, no. We are targeting around INR 900 crore of work to be completed, out of that INR 235 crore already completed. Going forward, in the next two years, this work would be completed. It will not go beyond FY 2028.
Okay. In terms of payment, have we got any payment? Obviously, the INR 800 crore which is left as of date. Just trying to understand.
See, we interacted with the highest level in the state government for the payments. Though there is a paucity of funds from the government of India, the state government has agreed to provide the funds from their part of 50% and also something extra also. We are expecting some funds before end of December, before end of November. We'll receive a certain amount out of the total outstanding. Going forward also, state government is expected to provide the funding in case of any gap in the central government funding.
Okay. This MP project where we are saying that there is an uncertainty in terms of the appointed date, is that also a possibility that this project can also go for a kind of a rebidding or we may be removing from our order book?
See, as of now, we can't say anything what state government final decision would be. But still now, we are hoping that once this land issue and alignment issues are sorted out, the project will be revived. As of now, we are hoping for that.
Okay, okay. Thank you and all the best, sir.
Thank you. We take the next question from the line of Vasudev from Nuvama. Please proceed.
Yeah. Thank you for the opportunity. Sir, can you give us the toll collection numbers for Q2?
Just note down. The toll collection for MP Highways in Q2 financial year 2026 is INR 10.8 crore. And the NOT for Raibareli project is INR 32 crore. And for Narela, it is around INR 4 crore.
Okay. And for Raibareli?
Raibareli INR 32 crore.
Okay. And the Bareilly Armola?
Bareilly Armola, actually, ये disposed off [Foreign language] p roject is transferred.
Okay . Sir, out of this INR 900 crore of water revenues that we are targeting, irrigation would be somewhere around INR 150 crore-INR 200 crore out of this?
Yes, yes. INR 150 crore.
Okay. Are we currently L1 in any of the projects?
No. No. We have received five projects we received a letter for. For all five projects.
Sir, that's it from my side. Thank you.
Thank you. We take the next question from the line of Vebhav Shah from JM Financial. Please proceed.
Sir, what would be the cash and current investments in PNC Infra Holding as of September?
It's around PNC Infra INR 1,200 crore. Okay.
Sir, since we have received sizable amount of money in the SPV, incrementally the equity investment in the HAM projects and the BESS projects, would it be partially from SPV and partially from the central entity?
It will be from the holding company as well as PNC. Same thing, what practice you have been doing. Same thing would be there.
This INR 200 crore would be used completely towards the equity commitments which is sitting in SPV.
Yeah.
Sir, lastly, any update on the SEDCO order?
See, matter is still sub judice. We can't say anything now. We are not in a position to share the further details. Matter is still sub judice.
Have you started the flyover project in Bharatpur City from PWD Rajasthan?
We have started. We have started.
Okay, okay. Thank you, sir. Those are my questions.
Thank you. We take the next question from the line of Aditya Sahu from HDFC Securities. Please proceed.
Hi, sir. Just one question over here. On the equity requirement for BESS, this would be INR 400 crore, right, sir? And this would be excluding INR 663 crore that we are investing in the HAM assets, right, sir?
Yes.
This INR 400 crore, of which, as you mentioned, the investment would be done in 2027 and 2028, FY2027 and 2028. How are we planning to fund this equity requirement? If you can throw some light on that.
No. See, this INR 663 crore to be invested in HAM projects and this INR 400 crore, total it is coming to INR 1,000-odd crore, which is to be invested in the next two years. One source is the funds that are available with our PNC Infra Holding, the key investment company. There will be internal accruals in FY26. For FY28 investment, again, there will be internal accruals in FY27. It is a combination of the amount we are having, what we realize from sale of our assets, and also from internal accruals. That would be accrued over the next two.
No debt funding for the BESS?
Yeah, yeah, yeah. No debt funding for the equity funding.
Understood. Understood. Thank you, sir. That answers my question. Thank you.
Thank you. We take the next question from the line of Anand Mundra from My Temple Capital. Please proceed.
Hello. Thank you for the opportunity. Sir, you mentioned that we received some INR 37 crore this quarter out of the INR 200 crore that were receivable from the SPV that we sold off to KKR. If I net off that, I think our EBITDA is about INR 100 crore. The EBITDA margin would come out to just about 10%. Is that understanding correct?
No, no. Out of whatever amount we have received from KKR, that is subject to the taxation, which is GST. The net amount is around INR 32 crore, which is reflected in our books of account and included in the EBITDA.
Out of the standalone EBITDA, INR 136 crore, INR 32 crore is coming on account of this receivable.
This receivable.
Okay. If I net that off, our core EBITDA would be about INR 104 crore. Is that correct?
Yes .
There has been a sharp fall in the margin this quarter. What would be the reason for that, sir?
The fixed cost being the same, there is a decline in the turnover. The fixed cost will be largely similar to this one because of the overheads and other things which we cannot suddenly reduce. That reflected in the marginal reduction in the EBITDA.
Got it, sir. Sir, I think Agra Bypass also, there was some arbitration of INR 485 crore that you had announced. When do we plan to recognize that?
See, this arbitration award is a contingent kind of a thing. Now, see, the award, what we understand is that NHAI is contemplating challenging the award.
Okay. Got it. That will take its own time because it is a challenge.
Yes, it will take its own time. When they challenge the award before the court of law, it will take its own time.
Got it, sir. Sir, the total cash that we were supposed to receive from the transaction was INR 2,500 crore, partially in PNC Infra Holdings and in the standalone entity. What would be the cash if I combine both? How much cash do we have on the balance sheet?
On a consolidated basis, the total cash is around INR 2,500 crore, INR 2,700 crore as of 30th September.
Okay . Most of the debt that we have on the consolidated balance sheet is project debt.
Yes, yes. There is hardly any debt that we can settle from this except maybe some INR 400-500 crore that we have as working capital.
Yes, okay. Mainly, how do we plan to use this capital? Would that be for funding new projects that we get, or are we planning some kind of a buyback or capital return to shareholders?
No. As of now, we are not considering the buyback of this thing. That could be, see, as we are actively bidding the HAM projects in the next two-three months, the high-value HAM projects would be requiring equity infusion in these HAM projects. Also, we are also pursuing some TBCB projects where competitive bidding for the transmission lines as well as the solar and BESS projects. There also would be required a sizable amount of equity. We will be basically, for the fund-based projects, earmarking this money. We will see going forward how the things will unfold.
Okay . Sir, out of that target that NHAI has for this year in terms of contract awarding, how much has been awarded till Q2?
Q2 awarding activity was very low. Readily we do not have numbers to share with you. We have the figures, but it's not readily available.
Its awarding activity is not great in Q2 also. All right, all right. Got it. Sir, just one final question. On the BESS project, what kind of EPC margin do we expect to make and then the overall IRR for the project?
See, BESS market, now we are actively doing the market soundings. The situation is so dynamic, particularly in the solar panel industry as well as the BESS industry. The situation being very dynamic, we are assessing what would be the market prices and all. Once we have some firm quotations and we finalize, then we'll be knowing what would be the equity IRR and the whole investment. It would be around 15% approximately. It is a very preliminary assessment.
Okay. That's it from mine. Thank you.
Thank you. Participants, in order to ask a question, you may press star and one on your touchstone telephone. We take the next question from the line of Vaibhav Shah from JM Financial. Please proceed.
Yeah. Thanks for the follow-up. Sir, I just missed this part. From where did you receive this INR 37 crore?
INR 37 crore, the receivables to be received by the SPVs through the buyer, VAT. So we received basically this amount received by respective SPVs and passed on to PNC.
So what EBITDA includes the INR 32 crore post-tax?
Yes . Post-tax. Not post-tax, pre-tax.
Post GST. Okay . Thank you.
Thank you. A reminder to the participants, in order to ask a question, you may press star and one. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Hershel Shah from Phillip Capital India Private Limited. Thank you and over to you, sir.
We thank the management of PNC Infratech Limited for giving us an opportunity to host the call and taking time out for interaction with the stakeholders. Thank you all for being on the call. Now I hand over the call to the management for the closing questions.
Yeah. Thank you, everyone, for your active participation in our earning call. In case of further queries, you may get in touch with the strategic growth advisors, our investor relations advisors, or feel free to get in touch with us. Thank you.
Thank you. On behalf of Phillip Capital India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.