PNC Infratech shares fell as much as 20% to Rs 140 on the BSE on Tuesday after the National Highways Authority of India (NHAI) extended the debarment of Awadh Expressway Pvt Ltd to PNC Infratech for three years, restricting the company’s participation in road project bids issued by the Ministry of Road Transport and Highways, NHAI and their executing agencies.
PNC Infratech said it received the NHAI letter on September 11. The action extends the debarment imposed on Awadh Expressway, the concessionaire of the Kanpur-Lucknow Expressway, to PNC Infratech in its capacity as the concessionaire’s promoter.
The company said in a stock exchange filing that it and Awadh Expressway were evaluating legal remedies. It also said the development would not affect its status as a going concern or the execution, operation and maintenance of its ongoing projects.
PNC Infratech added that any financial implications arising from the action would be disclosed once there was greater clarity. The immediate operational restriction relates to participation in future bids floated by the road ministry, NHAI and their executing agencies during the three-year period.
The action follows NHAI’s proceedings concerning the Kanpur-Lucknow Expressway project. A Ministry of Road Transport and Highways press release issued on August 5 said NHAI had served a notice proposing to declare PNC Infratech a non-performer. Under the proposed action, the concessionaire would become ineligible to participate in future NHAI bidding.
In a regulatory filing dated August 6, PNC Infratech had said it had not been debarred or declared a non-performer by NHAI at that point. The latest letter represents a subsequent extension of the action against Awadh Expressway to its promoter, according to the company’s disclosure.
The development affects the company’s access to a significant segment of India’s publicly awarded road project pipeline, although PNC Infratech has said its existing projects remain unaffected. The company’s disclosure did not quantify the potential financial impact of being excluded from the specified bids.
The regulatory action comes after a mixed first-quarter performance. PNC Infratech reported consolidated net profit of Rs 332 crore for the June quarter of fiscal 2027, down 23% from Rs 431 crore in the same quarter a year earlier. Revenue from operations increased 18.6% year on year to Rs 1,688 crore from Rs 1,423 crore, while EBITDA rose 42.1% to Rs 523 crore. Its EBITDA margin expanded to 31% from 25.9%.
The company and Awadh Expressway are evaluating their legal remedies, while PNC Infratech has said it will disclose further financial implications as clarity emerges.
