PNC Infratech Hits 20% Lower Circuit After Three-Year NHAI, MoRTH Bidding Ban

PNC Infratech shares were locked in the 20% lower circuit on Tuesday after the company was barred for three years from bidding for new projects floated by the National Highways Authority of India (NHAI) and the Ministry of Road Transport and Highways (MoRTH). 

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The stock fell to ₹140.32, marking its steepest single-day decline since October 21, 2024, when it had also dropped 20%. The latest fall has taken the stock’s decline in 2026 to 44.2%, while the Nifty 50 has lost 10.5% over the same period. At ₹140.32, PNC Infratech’s market capitalisation stood at around ₹3,600 crore. 

Three-Year Restriction Imposed Following Kanpur-Lucknow Expressway Controversy 

This debarment stems from reports of structural deterioration in Package-II of the Kanpur-Lucknow Expressway Project, where the concessionaire happens to be the Awadh Expressway. 

PNC Infratech will find itself barred for the next three years from tendering in NHAI and MoRTH projects. However, this restriction does not apply to those projects which are already underway or where the company has been chosen as L1 or the lowest bidder. 

This is important since NHAI projects form about 36% of its total order backlog of Rs. 19,200 crores, as per the June report. 

PNC Infratech says that it is examining its options legally after being debarred. 

NHAI Proceedings Began in August 

The latest action follows proceedings initiated by NHAI in August over the Kanpur-Lucknow Expressway project. 

At the time, the highways authority issued show-cause notices proposing to classify PNC Infratech as a non-performer. The company subsequently clarified that it had not, at that stage, been debarred or declared a non-performer. 

The August notice had also proposed a penalty equivalent to 2% of the performance security and a downgrade in the company’s rating. Such a downgrade could affect eligibility for future NHAI projects. 

The situation has now moved beyond the earlier show-cause stage, with the three-year restriction preventing PNC Infratech from bidding for fresh NHAI and MoRTH projects while leaving its ongoing projects and existing L1 positions outside the scope of the ban.