NCC Limited

Operational Highlights

NCC Limited achieved its highest ever second quarter revenue in company history despite seasonal monsoon impacts. The company has been expanding into new areas including smart meters and tunneling using TBMs. The Board has approved modifications to the Memorandum of Association to enlarge the scope of activities to pursue emerging business opportunities.

Financial Performance - Q2 FY27

Standalone Performance:

  • Turnover: ₹4,957 crores (31% growth YoY from ₹3,775 crores)
  • EBITDA: ₹417.05 crores at 8.48% margin (vs 7.45% in Q2 FY26)
  • PBT: ₹218.19 crores at 4.4% margin (vs 3.12% in Q2 FY26)
  • PAT: ₹163.17 crores at 3.29% margin (vs 2.7% in Q2 FY26)
  • EPS: ₹2.60 (vs ₹1.62 in Q2 FY26)

Consolidated Performance:

  • Turnover: ₹6,042 crores (32% growth YoY from ₹4,585 crores)
  • EBITDA: ₹528.46 crores at 8.79% margin (vs 8.66% in Q2 FY26)
  • PBT: ₹269.85 crores at 4.47% margin (before exceptional items)
  • PAT attributable to shareholders: ₹184.29 crores at 3.05% margin (vs 3.37% in Q2 FY26)

Order Book Position

As of September 30, 2026:

  • Total order book: ₹80,167 crores (11% higher YoY)
  • Standalone order book: ₹71,293 crores
  • Subsidiaries order book: ₹8,874 crores
  • Order book composition: 3.5x trailing 12-month revenue

Order Book Breakdown by Division:

  • Buildings: ₹22,367 crores (28% of total)
  • Transportation: ₹15,682 crores (20% of total)
  • Electrical T&D: ₹12,370 crores (15% of total)
  • Mining: ₹12,400 crores (15% of total)
  • Water and Railway: ₹12,126 crores (15% of total)
  • Irrigation and Other: ₹5,220 crores (7% of total)

Order Inflows:

  • Q2 FY27 new orders: ₹4,838 crores (mainly from buildings and water/railway divisions)
  • October 2026 orders: ₹2,381 crores
  • YTD FY27 total inflow: ₹11,108 crores (50% of lower guidance band)

Debt and Capital Structure

Standalone Debt Movement:

  • Beginning of quarter: ₹2,410 crores (net debt: ₹2,008 crores)
  • End of Q2 FY27: ₹2,471 crores (net debt: ₹2,293 crores)
  • Q2 FY26 comparison: ₹2,115 crores (net debt: ₹1,890 crores)
  • Debt-equity ratio: 0.32 (vs 0.31 at June 30, 2026 and 0.29 at September 30, 2025)

Consolidated Debt Movement:

  • Beginning of quarter: ₹4,020 crores (net debt: ₹3,513 crores)
  • End of Q2 FY27: ₹4,110 crores (net debt: ₹3,887 crores)
  • Q2 FY26 comparison: ₹2,923 crores (net debt: ₹2,643 crores)

Working Capital Analysis

  • Working capital (excluding cash and margin money): ₹5,532 crores (28% of turnover, 96 days)
  • Trade receivables: ₹2,697 crores (53 days vs 68 days previous quarter, 78 days YoY)
  • Retention money: ₹2,547 crores (vs ₹2,396 crores at June 30, 2026 and ₹2,250 crores at March 31, 2026)
  • Unbilled revenue: ₹7,174 crores (37% of revenue vs 38% previous quarter, 41% YoY)
  • Mobilization advances: ₹2,925 crores (53% interest-bearing at average 9.07% rate)
  • Cash and cash equivalents: ₹178 crores (vs ₹404 crores at June 30, 2026 and ₹584 crores at March 31, 2026)
  • Margin money deposits: ₹740 crores (vs ₹633 crores at June 30, 2026 and ₹631 crores at March 31, 2026)

Capital Expenditure

  • Q2 FY27 capex: ₹83 crores
  • H1 FY27 capex: ₹253 crores
  • FY27 budget: ₹500 crores

Other Balance Sheet Items

  • Inventory: ₹1,742 crores (vs ₹1,815 crores at June 30, 2026 and ₹1,787 crores at March 31, 2026)
  • Investments: ₹867 crores (unchanged from March 31, 2026)
  • Loans to group companies: ₹306 crores (vs ₹290 crores at June 30, 2026 and ₹295 crores at March 31, 2026)
  • Vizag receivables: ₹270 crores (unchanged from June 30, 2026, vs ₹291 crores at March 31, 2026)

Project-Specific Updates

Jal Jeevan Mission (JJM):

  • Total outstanding: ₹2,246 crores across various states
  • Trade receivables: ₹344 crores
  • Unbilled revenue: ₹2,009 crores
  • H1 FY27 payments received: ₹1,720 crores
  • Order backlog: ₹5,412 crores (excluding O&M)
  • Legacy projects balance: ₹3,200 crores (expected completion by March 2027)
  • New projects: ₹2,128 crores

Smart Meters:

  • 51% installation completed, 49% outstanding
  • Payment structure: partial payment on installation, balance over 93 months
  • No working capital challenges reported

BharatNet Project:

  • 11% of total contract executed in MP and Uttarakhand
  • ₹1,000 crores spent on work
  • Housed under Electricals and T&D division

AP Capital City:

  • Order book: ₹14,500 crores
  • Receivables realization within 30-40 days
  • No payment challenges reported

Ken-Betwa River Linking Project:

  • Contract value: ₹3,389 crores
  • Making reasonable progress despite land acquisition issues

Other Projects:

  • Mining project in Jharkhand (Amrapali project) - capital intensive
  • TBM machine capitalized and put to use in September 2026

FY27 Guidance

Management retained full-year guidance:

  • Revenue growth: 8-10%
  • Order inflow: ₹22,000-25,000 crores
  • EBITDA margin: 8.5-9%

Risk Factors and Contract Provisions

  • 81% of contracts have escalation clauses to offset raw material price increases
  • Retention money ranges from 5-20% depending on contract type
  • Government client payment cycles: 50-60 days from certification date

Investment Property Issue

  • ₹107 crores investment in Hyderabad project
  • Project stalled due to developer issues and RERA hold
  • Matter before NCLT
  • Amount considered fully secured