Infrastructure Order Win
PNC Infratech Receives NHAI LoAs Worth ₹3,483 Crore for Two HAM Highway Projects in Uttar Pradesh
NSE
pncinfra
BSE
539150
PNC Infratech Limited received Letters of Acceptance (LoAs) from the National Highways Authority of India (NHAI) for two Hybrid Annuity Model (HAM) highway projects in Uttar Pradesh with an aggregate bid project cost of ₹3,483 crore excluding GST.
PRICE-SENSITIVE TRIGGER
Event: PNC Infratech received NHAI Letters of Acceptance for two HAM-based national highway construction projects.
Type: Infrastructure Order Win
Impact: Positive
Immediate Effect: The projects significantly strengthen PNC Infratech’s road EPC and HAM order book while improving medium-term execution visibility.
Key Metrics:
- Aggregate Bid Project Cost: ₹3,483 crore excluding GST.
- Awarding Authority: National Highways Authority of India (NHAI).
- Project Model: Hybrid Annuity Model (HAM).
- Project Location: Uttar Pradesh.
- Project Count: Two HAM highway projects.
- Execution Timeline: 24 months for each project.
Project I:
- Project Stretch: Barabanki to Mustafabad section of NH-927.
- Project Length Coverage: Chainage Km 0+000 to 43+700.
- Quoted & Accepted BPC: ₹1,728 crore.
Project II:
- Project Stretch: Mustafabad to Biswan section of NH-927.
- Project Length Coverage: Chainage Km 43+700 to 98.475.
- Quoted & Accepted BPC: ₹1,755 crore.
- Entity Classification: Domestic.
- Promoter Interest in Awarding Authority: No.
- Related Party Transaction: Not applicable.
Highlight Metric:
- PNC Infratech secured two NHAI HAM projects worth ₹3,483 crore, strengthening its highway infrastructure execution pipeline in Uttar Pradesh.
What Happened ?
PNC Infratech Limited announced receipt of Letters of Acceptance (LoAs) from the National Highways Authority of India (NHAI) for two Hybrid Annuity Model (HAM) highway projects in Uttar Pradesh.
The two projects involve construction of four-lane highway stretches on NH-927 under the NH(O) scheme.
Project I covers the Barabanki to Mustafabad section with accepted bid project cost of ₹1,728 crore.
Project II covers the Mustafabad to Biswan section with accepted bid project cost of ₹1,755 crore.
The aggregate project cost for both projects stands at ₹3,483 crore excluding GST.
Each project is expected to be executed within 24 months.
The company stated that it emerged as the Lowest (L1) bidder for both projects and received formal LoAs from NHAI on May 22, 2026.
Key Details
Project Scope & Highway Development:
- Both projects involve construction of four-lane highways under HAM mode.
- The projects are part of the NH(O) highway development scheme.
- Project I:
- Barabanki to Mustafabad section
- Accepted BPC of ₹1,728 crore
- Project II:
- Mustafabad to Biswan section
- Accepted BPC of ₹1,755 crore
- The projects are located on NH-927 in Uttar Pradesh.
- Execution period for each project is 24 months.
Note:
- The projects strengthen regional highway connectivity and support ongoing national highway expansion programs.
Business & Order Book Impact:
- The aggregate project cost stands at ₹3,483 crore excluding GST.
- The projects materially strengthen PNC Infratech’s:
- HAM portfolio
- Road EPC order book
- Execution visibility
- HAM projects provide:
- Long-term revenue visibility
- Stable annuity-linked cash flows
- Reduced traffic risk compared to BOT projects
- The projects reinforce PNC’s positioning in national highway infrastructure execution.
Note:
- Large HAM project additions remain critical drivers for long-term infrastructure revenue growth.
Strategic Infrastructure Significance:
- Uttar Pradesh remains one of India’s largest highway infrastructure development markets.
- The projects align with:
- National highway modernization
- Freight corridor strengthening
- Regional connectivity enhancement
- NHAI continues accelerating HAM-based road development across India.
- Highway upgrades improve:
- Logistics efficiency
- Freight mobility
- Economic connectivity
- The projects support sustained government infrastructure capex momentum.
Note:
- The order reflects continued strong ordering activity within India’s highway infrastructure sector.
Risk Analysis
Summary:
- Despite securing the projects, PNC Infratech remains exposed to execution risks, land availability issues, commodity inflation, and working capital intensity associated with large HAM projects.
Key Risks:
- Highway projects may face execution delays due to approvals or land-related issues.
- Rising raw material prices may impact construction margins.
- HAM projects require significant upfront execution investment.
- Delays in milestone achievement may impact cash-flow timing.
- Infrastructure sector receivables remain sensitive to government payment cycles.
- Multi-project execution complexity may affect operational efficiency.
Worst Case Scenario:
- If execution timelines extend materially or cost inflation remains elevated, profitability and project cash-flow realization could face pressure.
Risk Level: Medium
Company Commentary
- PNC Infratech confirmed receipt of LoAs from NHAI for both HAM projects.
- The company stated that it emerged as the Lowest (L1) bidder for both projects.
- Management highlighted aggregate project value of ₹3,483 crore excluding GST.
- The projects are scheduled for execution over 24 months each.
- The orders strengthen PNC Infratech’s road infrastructure execution pipeline.
Official Exchange Filing: PNC Infratech Limited