NCC Limited (NCC)
🎯 Key Takeaways
- NCC Limited is in a consolidation and margin recovery phase following years of margin compression, with recent quarters showing sequential improvement in profitability and order book strength. Management is focused on operational efficiency and disciplined execution amid commodity volatility, reaffirming long-term growth targets despite macro headwinds.
- Revenue grew 2.9% QoQ to ₹5,345 in Q3FY25.
- ⚠️ Execution risks in project delivery remain a concern, as highlighted by management despite improving order book visibility.
📖 The Story
NCC Limited is in a consolidation and margin recovery phase following years of margin compression, with recent quarters showing sequential improvement in profitability and order book strength. Management is focused on operational efficiency and disciplined execution amid commodity volatility, reaffirming long-term growth targets despite macro headwinds. The narrative has shifted from distress to cautious optimism, underpinned by renewed order inflows and margin expansion.
📰 What's Happening
In Q1 FY27, NCC reported 12% YoY revenue growth to INR 5,842 crores, driven by a robust order book of INR 81,214 crores and EBITDA margin expansion to 9.4%. This follows a series of sequential margin improvements from 6.4% in Q2FY24 to 8.7% in Q1FY24, indicating operational recovery. Management reaffirmed FY27 revenue growth guidance of 8-10% and EBITDA margin target of 8.5-9%, citing execution risks and commodity cost pressures as key variables. Additionally, in July 2026, the company secured new orders worth INR 1,052.71 crores across Buildings and Water divisions, further validating demand momentum. The AGM scheduled for August 27, 2026, will focus on dividend approval (₹2.20/share) and director reappointments, signaling governance continuity.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q4FY23 | Q1FY24 | Q2FY24 | Q3FY24 | Q4FY24 | Q1FY25 | Q2FY25 | Q3FY25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4,949 | 4,380 | 4,720 | 5,260 | 6,485 | 5,528 | 5,196 | 5,345 |
| Operating Profit | 483 | 436 | 331 | 533 | 563 | 508 | 471 | 479 |
| OPM % | 9.4% | 9.3% | 6.4% | 9.6% | 8.5% | 8.7% | 8.5% | 8.3% |
| Net Profit | 203 | 184 | 86 | 231 | 239 | 223 | 175 | 206 |
| EPS | ₹3.04 | ₹2.76 | ₹1.23 | ₹3.51 | ₹3.81 | ₹3.34 | ₹2.60 | ₹3.08 |
NCC's financial trajectory shows a clear inflection from margin troughs in FY24 to stabilization and improvement in FY25-FY26, with operating profit margin rising from a low of 6.4% in Q2FY24 to 8.7% in Q1FY24 and sustaining above 8% in recent quarters. Revenue growth has turned positive after declines in H1FY24, supported by order book expansion and project execution. Despite flat YoY revenue in Q3FY25 (₹5,345 crores), profitability improved with NP at ₹206 crores and EPS at ₹3.08, reflecting cost control and operational leverage. The trend aligns with management's focus on margin recovery, though growth remains uneven due to project cyclicality and execution risks.
🔮 Management Outlook & What's Next
Management has consistently reaffirmed its FY27 revenue growth guidance of 8-10% and EBITDA margin target of 8.5-9%, most recently in the Q1 FY27 results filing on August 11, 2026. While no new long-term targets were introduced, the reaffirmation signals confidence in the current trajectory despite macro volatility. Management highlighted execution risks and commodity cost pressures as primary concerns, but emphasized that the strong order book and improving margins support the outlook. No forward-looking guidance beyond FY27 was provided in the latest filings.
Extracted from official company announcements. Not StockFin.ai's opinion.
⚖️ Peer Comparison — Construction
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| Larsen & Toubro Limited | 5.38 L Cr | 33.1 | — | — | — |
| Rail Vikas Nigam Limited | 59,006 | 45.4 | — | — | — |
| NBCC (India) Limited | 25,331 | 49.1 | — | — | — |
| IRB Infrastructure Developers Limited | 24,518 | 3.8 | — | — | — |
| Kalpataru Projects International Limited | 21,476 | 39.0 | — | — | — |
| Cemindia Projects Limited | 15,453 | 44.3 | — | — | — |
| KEC International Limited | 14,602 | 31.4 | — | — | — |
| Techno Electric & Engineering Company Limited | 13,909 | 36.5 | — | — | — |
| Engineers India Limited | 13,868 | 33.4 | — | — | — |
| Ircon International Limited | 13,416 | 17.6 | — | — | — |
⚠️ Risk Factors
1. Execution risks in project delivery remain a concern, as highlighted by management despite improving order book visibility. 2. Commodity cost pressures, particularly in steel and cement, continue to pose margin headwinds with no full pass-through capability. 3. The company's historical reliance on cyclical construction demand exposes it to macroeconomic slowdowns in infrastructure and real estate. 4. Margin recovery is fragile and dependent on operational efficiency, with any setbacks in project execution or pricing pressure likely to reverse recent gains.
📋 Recent Filings
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🔴 Financial Results 11 August 2026NCC Limited reported a 12% YoY revenue increase to INR 5,842 crores in Q1 FY27, driven by strong order book growth to INR 81,214 crores, with EBITDA m...
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🔴 Financial Results 7 August 2026NCC Limited announced that an audio recording of its conference call discussing unaudited financial results for the quarter ended June 30, 2026 is now...
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🟡 related party transaction 31 July 2026NCC Limited announced receipt of three orders in July 2026 totaling Rs.1052.71 Crore, with Rs.590.38 Crore to Buildings Division and Rs.462.33 Crore t...
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Announcement 29 July 2026NCC Limited announced an investor conference call on August 7, 2026 at 11:30 AM IST to discuss Q1 FY27 unaudited financial results, following its boar...
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🔴 annual report 27 July 2026NCC Limited announced the 36th Annual General Meeting scheduled for August 27, 2026, via video conference, along with the Integrated Annual Report for...
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🔴 annual report 27 July 2026NCC Limited submitted its Business Responsibility and Sustainability Report for FY 2025-26 to NSE and BSE on July 27, 2026, as mandated under SEBI Reg...
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Announcement 3 July 2026NCC Limited announced receipt of a SEBI-mandated compliance certificate from KFin Technologies confirming dematerialized securities for the quarter en...
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share transfer 1 July 2026NCC Limited informed physical shareholder holders that they must update KYC details with KFin Technologies, its share transfer agent, by submitting sp...
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Financial Results 26 June 2026NCC Limited announced that its trading window will close on July 1, 2026, for directors, promoters, and designated persons until 48 hours after the un...
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Financial Results 19 June 2026NCC Limited clarified that its standalone and consolidated financial results filed on May 15, 2026, were revised to include missing EPS and reserves f...
🧠 Analyst's Read
NCC is transitioning from a turnaround phase to stable growth, supported by margin recovery and a healthy order book, but execution risks and commodity volatility continue to cap near-term upside. Investors should monitor margin sustainability in upcoming quarters and management's ability to deliver on FY27 guidance amid rising input costs.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-13.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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