PNCINFRA

PNC reported a weak Q1FY26 with revenue down 13% YoY to INR 11.4bn (adjusted), EBITDA down 11% YoY to INR 1.4bn, margins stable at 12.4%, and PAT declining 15% YoY to INR 0.8bn. Order book (OB) rose to INR 171bn (3.5x TTM revenue) but ~43% is yet to receive appointed dates (AD), reducing executable backlog to INR 107bn (2.2x book to-bill). The company has also entered RE assets and mining orders worth INR 50bn, where it lacks execution history, heightening risk. Management expects AD for INR 30bn in Q2/Q3 and INR 10bn revenue from these to support 15–20% growth guidance. However, Q1 trends suggest potential shortfall unless execution improves. We downgrade to HOLD; TP revised to INR 310, factoring in weak executable order book and elevated execution risk in non-core verticals.