News Earnings NCC Limited Q3 FY26 Earnings Call Reveals Order Book Growth and JJM Payment RecoveryNCC Limited Q3 FY26 Earnings Call Reveals Order Book Growth and JJM Payment Recovery
NCC Limited's Q3 FY26 earnings conference call revealed significant developments including order book expansion to ₹79,571 crores and substantial progress on Jal Jeevan Mission payment recoveries. The management provided comprehensive updates on operational improvements, debt movements, and project execution status while maintaining optimism for Q4 performance recovery.
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NCC Limited held its Q3 FY26 earnings conference call on February 6, 2026, with management providing detailed insights into the company's financial performance and operational developments. The engineering and construction major reported mixed quarterly results while highlighting significant order book growth and progress on Jal Jeevan Mission payment recoveries.
Conference Call Participants and Key Highlights
The earnings call was moderated by JM Financial and featured key management personnel including R.S. Raju (Director of Projects), Sanjay Pusarla (Executive Vice President Finance and CFO), and Neerad Sharma (Head Strategy and Investor Relations). The management discussed operational challenges, payment recoveries, and future outlook across business segments.
Order Book Performance and Fresh Inflows
| Parameter | Details |
|---|---|
| Consolidated Order Book | ₹79,571 crores |
| Fresh Order Inflows (Q3 FY26) | ₹12,430 crores |
| Standalone Order Book | ₹72,748 crores |
| Subsidiary Order Book | ₹6,823 crores |
| Nine Months Order Inflows | ₹22,311 crores |
| Including January Orders | ₹24,768 crores |
Jal Jeevan Mission Payment Recovery Progress
The management provided significant updates on JJM payment recoveries, which had been a major concern affecting execution. The company has received approximately ₹560 crores in payments, primarily in January 2026, with outstanding receivables for Uttar Pradesh projects reduced from ₹1,700 crores to ₹1,200 crores.
JJM Project Status
| Metric | Amount/Details |
|---|---|
| Total JJM Order Book | ₹7,000 crores |
| UP Outstanding Receivables | ₹1,200 crores |
| Total JJM Receivables (All States) | ₹3,700 crores |
| Q3 FY26 JJM Execution | ₹82 crores |
| Nine Months JJM Execution | ₹1,300-1,500 crores |
The management expressed optimism about future payments, citing the central government's provision of ₹17,000 crores for release before March 2026 and a budget allocation of ₹67,670 crores for the next financial year.
Financial Performance and Debt Movement
During the call, CFO Sanjay Pusarla detailed the company's financial metrics, including a significant debt increase during the quarter. The consolidated debt rose from ₹2,115 crores at the beginning of Q3 to ₹2,980 crores at quarter-end, with net debt reaching ₹2,830 crores.
Key Financial Metrics Discussed
| Parameter | Q3 FY26 | Previous Period |
|---|---|---|
| Debt-Equity Ratio | 0.40x | 0.29x (Q2 FY25) |
| Working Capital | ₹6,036 crores (37% of turnover) | 119 days |
| Unbilled Revenue | ₹7,129 crores (44% of turnover) | ₹6,663 crores (Q2) |
| Mobilization Advances | ₹3,162 crores | ₹2,961 crores (Q2) |
Operational Developments and Project Status
The management confirmed that all previously stalled projects have now received necessary clearances and mobilization is complete. Major projects including tunnel and coastal road projects have obtained required approvals, with TBM equipment received and landing shafts prepared for operations.
Capex and Investment Updates
| Investment Area | Amount |
|---|---|
| Q3 FY26 Capex | ₹96 crores |
| Nine Months Capex | ₹265 crores |
| Annual Capex Budget | ₹1,050 crores |
| Smart Meter Investment (Total) | ₹377 crores |
| Remaining Smart Meter Investment | ₹120 crores |
Segment Diversification and Future Outlook
The order book remains well-diversified across segments with Buildings (31%), Transportation (22%), Electrical T&D (18%), Mining (13%), Water & Railway (10%), and Irrigation (7%). The management indicated that 79% of contracts include escalation clauses, providing protection against commodity price fluctuations.
The company has withdrawn its FY26 guidance but expressed confidence in Q4 performance improvement, citing normalized payment flows and project execution momentum. Management indicated they would provide FY27 guidance during the Q4 earnings call after comprehensive project evaluation.
Historical Stock Returns for NCC
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.17% | +2.46% | +7.31% | -29.86% | -15.24% | +68.16% |
