NCC Limited , a prominent player in the construction and infrastructure sector, has successfully obtained approval from a significant majority of its secured creditors for a proposed Scheme of Arrangement. The scheme involves NCC Infrastructure Holdings Limited (Transferor Company) and NCC Limited (Transferee Company).

Creditor Meeting Details

The adjourned meeting of secured creditors, held on August 14, 2025, saw a strong turnout with 18 secured creditors representing approximately 92.25% of the total outstanding secured debt in attendance. The meeting, conducted under the supervision of the National Company Law Tribunal (NCLT), was chaired by Mr. Md. Hidayathullah Shareef.

Voting Outcome

The voting results were decisively in favor of the proposed scheme:

• 17 out of 18 secured creditors voted in favor, representing about 89.60% in value of the total outstanding secured debt.
• One secured creditor abstained from voting.
• No votes were cast against the scheme.

Key Participants

Several major banks and financial institutions were among the creditors who supported the scheme:

Financial Implications

The total debt amount involved in this Scheme of Arrangement is ₹2,032.98 crores. This substantial figure underscores the significance of the creditors' approval for NCC Limited's financial restructuring plans.

Procedural Notes

Mr. Srikant Kumar Puthi, a Practicing Company Secretary, served as the Scrutinizer for the voting process, which was conducted through ballot papers. The meeting's outcome and the Scrutinizer's report will be submitted to the NCLT for further proceedings.

Background

It's worth noting that the creditor meeting faced several adjournments before reaching this conclusion. Originally scheduled for January 2025, the meeting was postponed three times before finally being held in August 2025.

The approval of this Scheme of Arrangement marks a significant milestone for NCC Limited, potentially paving the way for streamlined operations and improved financial structure. As the process moves forward, stakeholders will be keenly watching the implementation of the scheme and its impact on the company's future performance in the infrastructure sector.

NCC Ltd., a leading construction and infrastructure company, saw its shares surge 4.64% to Rs 220.80 on Tuesday, breaking a five-day losing streak despite reporting weaker quarterly results. The stock's performance was bolstered by robust order inflows, signaling investor confidence in the company's future prospects.

Financial Performance

For the quarter ended June 30, NCC Ltd. reported:

• Consolidated revenue of Rs 5,178.99 crore, down 6.3% from Rs 5,527.98 crore in the same quarter last year
• Net profit attributable to shareholders declined 8.5% to Rs 192.14 crore, compared to Rs 209.92 crore in the previous year
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at Rs 456.12 crore, a 4.6% decrease from Rs 477.91 crore in the year-ago period
• EBITDA margin improved slightly to 8.8% from 8.6% in the corresponding quarter

Strong Order Inflows

A key highlight of the quarter was NCC's robust order inflow:

• Secured new orders worth Rs 3,658 crore
• The consolidated order book stood at Rs 70,087 crore as of June 30, providing visibility for future revenue

Segment Performance

Construction Segment

• Revenue: Rs 5,151.33 crore
• Segment result: Rs 292.17 crore

Real Estate Segment

• Revenue: Rs 27.66 crore
• Segment result: Rs 1.14 crore

Market Performance and Analyst Outlook

Despite the recent rebound, NCC's stock has faced challenges:

• Declined 29.98% over the past 12 months
• Down 20.41% year-to-date

Analyst sentiment remains largely positive:

• Out of 15 analysts covering the stock:
  • 10 maintain buy ratings
  • 3 hold
  • 2 sell
• The average price target implies a 23.4% upside potential from current levels

Management Commentary

A.A.V. Ranga Raju, Managing Director of NCC Limited, stated in the company's press release, "In the first quarter, the Company has secured orders aggregating to Rs 3,658 Crore (including change in scope) and the Order Book stood at Rs 70,087 Crore on a consolidated basis as on 30.06.2025."

Conclusion

While NCC Ltd. faced headwinds in its quarterly financial performance, the strong order inflows and robust order book position have instilled confidence among investors. The company's ability to secure new projects amidst challenging market conditions underscores its strong market position in the infrastructure sector. As NCC continues to execute its order book, investors will be keenly watching for improvements in revenue and profitability in the coming quarters.