Shares of PNC Infratech Ltd. have slumped nearly 9% in the past week's session, and may see further downside. The company posted a 23% year-on-year decline in consolidated net profit for the June quarter, but that's not all.
Earlier in the week, PNC Infra found itself in a pickle after the National Highways Authority of India took action against it due to some lapses in quality of a project.
NHAI initiated action against concessionaire PNC Infratech after slippage was detected along an approximately 300-metre stretch of the Kanpur-Lucknow Expressway. Post the discovery, the government authority suspended toll collection on the corridor.
The highways authority has said that no toll will be charged until the affected portion is completely repaired, adding that the lost toll revenue during the suspension period will be recovered from PNC Infratech.
The company issued a clarification regarding the same and said that certain isolated stretches of the project were affected because of the recent heavy and incessant rains, the total length of which is 300 m which is less than 0.5% of the entire length of the expressway.
PNC Infra's net profit for the first quarter of financial year 2027 stood at Rs 332 crore, down from Rs 431 crore in the corresponding quarter a year earlier.
Revenue from operations, however, increased 18.6% year-on-year to Rs 1,688 crore from Rs 1,423 crore in the year-ago period.
The company reported a sharper improvement at the operating level.
EBITDA rose 42.1% year-on-year to Rs 523 crore, compared with Rs 368 crore in the same quarter last year.
EBITDA margin also expanded significantly to 31% from 25.9% a year earlier, reflecting a stronger operating performance during the quarter.
Share Price History
The stock will be on focus on Monday as the double whammy may sour investor sentiment. Shares ended 6.4% lower at Rs 224.38 apiece on the NSE on Friday.
They have fallen 10.85% year-to-date, and 27% in the last 12 months.
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