Infrastructure company PNC Infratech Ltd announced that the Delhi High Court has temporarily stayed the three-year bidding ban imposed by the National Highways Authority of India (NHAI) against the company. According to reports from Business Standard, the court stayed the impugned debarment order until the next hearing on November 26, 2026, allowing the company to immediately resume bidding and participate in NHAI/MoRTH tenders until the next hearing. The court noted that since a Provisional Completion Certificate was issued on October 1, 2025, declaring the Kanpur-Lucknow expressway project fit and safe for users, the debarment order should not have been issued. As per Business Upturn, this judgement, dated October 12, 2026, halts the previous debarment orders dated August 11, 2026 and September 3, 2026, ensuring that the company and its concessionaire will not be affected by the debarment.
Following the court's announcement, PNC Infratech shares rose as much as 7.05% to the day's high of ₹167.75 on the BSE as against the last closing price of ₹156.70, as reported by Business Standard. As of 11:30 AM, the stock was trading 6.03% higher at ₹166.15, with a combined 16.8 million shares changing hands on the BSE and NSE. This represents a significant recovery from the stock's performance on Tuesday, when it had ended 13.3% higher at ₹151 after the initial stay order announcement. The stock correction of 38% since the Kanpur-Lucknow project issue emerged has made valuations attractive, with the company now trading at 9x/7x FY27/28E EPS.
As reported by CNBC TV18, PNC Infratech stated that its development, construction, operations and maintenance activities, along with those of its subsidiaries, would continue to remain unaffected. The company added that any financial implications, if applicable, would be disclosed in due course. The debarment of Awadh Expressway had been extended to the company by NHAI, with the company being barred from participating in the NHAI and Ministry of Road Transport projects for a three-year period due to issues pertaining to structural distress reported on the Kanpur-Lucknow Expressway Package-II. According to Business Standard, analysts at JM Financial noted there is a possibility of a significant reduction in the ban period or even permanent removal after examining NHAI's final arguments at the next hearing.
According to CNBC TV18, PNC Infratech had reported a steady first quarter performance with its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increasing by 42.6% from last year and margins expanding by over 500 basis points. As reported by Business Standard, the company's order backlog stood at ₹15,700 crore as of the June quarter. As of June this year, NHAI contributed to nearly 36% of PNC Infratech's overall order backlog of ₹19,200 crore. The company had been hit with a one-year ban in October last year on bribery allegations, which was later reduced to four months. NHAI had earlier initiated disciplinary action last month after these developments, however, the ongoing projects, and projects for which the company has emerged as the L1 (lowest) bidder, will not be impacted.
Analysts at JM Financial remain bullish on PNC Infratech's prospects and have a 'BUY' rating on the counter, as reported by Business Standard. The brokerage expects robust 30% EPS CAGR in FY26-28E led by ramp-up in revenue and higher other income led by higher cash levels. JM Financial noted that the stock correction of 38% since the Kanpur-Lucknow project issue emerged has made valuations attractive, with the company now trading at 9x/7x FY27/28E EPS. The brokerage values the EPC business at 12x Sep'27 EPS and assets at ₹71/share to arrive at an SoTP-based price target of ₹310.
