PNC Infratech Gains on Winning ₹297 Crore Varanasi Airport Runway Contract

Mumbai, September 3, 2025 -Shares of PNC Infratech Ltd (NSE: PNCINFRA, BSE: 539150) edged higher in early trade on Wednesday after the company announced that it has secured a key airport infrastructure order in Uttar Pradesh.

PNC Infratech Limited, listed on NSE and BSE since May 26, 2015, operates in the civil construction sector with a strong presence in road, highway, and airport infrastructure projects. The company is part of the NIFTY Smallcap 250 index.

What Caused the Surge

The trigger for the stock move was the company’s disclosure that it had emerged as the lowest bidder (L1) for a contract from the Airports Authority of India (AAI). The project, worth ₹297.01 crore (excluding GST), involves the extension, re-carpeting, and strengthening of the runway at Lal Bahadur Shastri International Airport, Varanasi, along with allied works. The contract is to be executed within 18 months, adding visibility to PNC Infratech’s order pipeline.

Market Reaction

Following the announcement, the stock hit a high of ₹314.90 before easing to trade around ₹306.90, with strong trading volumes of over 4 lakh shares. The counter continues to remain well below its 52-week high of ₹469.65 (October 16, 2024) but significantly above its 52-week low of ₹240.00 (May 9, 2025).

Valuation & Outlook

At current levels, PNC Infratech’s market capitalization stands at around ₹8,000 crore. The stock trades at a P/E ratio of 11–12x and a P/B ratio of 1.3x, with a modest dividend yield of 0.2%. Despite being nearly 9% lower year-to-date, analysts remain positive, maintaining Buy ratings with 12-month price targets in the range of ₹370–₹430, implying a potential upside of 20–30%.

Implications for the Company

The Varanasi runway contract enhances PNC Infratech’s already robust order book and strengthens its presence in aviation infrastructure, a sector expected to see significant growth given rising passenger traffic and government-led capacity expansion. Analysts highlight that the project will provide stable revenue visibility and support earnings momentum over the next two fiscal years.

The company has also declared a final dividend of ₹0.6 per share, with a record date of September 22, 2025, underscoring its intent to balance shareholder returns with growth investments.

REF: https://nsearchives.nseindia.com/corporate/PNCINFRA_02092025190736_IntimationL1Bidder-02092025.pdf

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