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.

NCC Limited, a leading infrastructure construction company, has reported a significant 33% year-on-year increase in its order book, reaching ₹70,087 crore as of June 30. This robust growth underscores the company's strong market position and client confidence in its execution capabilities.

Q1 Performance Highlights

For the first quarter, NCC reported:

• Consolidated revenue of ₹5,207.93 crore, down 6% year-on-year
• EBITDA of ₹456.12 crore
• Net profit attributable to shareholders of ₹192.14 crore
• Basic and diluted earnings per share (EPS) of ₹3.06

Order Inflow and Future Outlook

The company secured new orders worth ₹3,658 crore in Q1, achieving approximately 17% of its full-year order inflow guidance. NCC has set an ambitious target for order inflows of ₹22,000-25,000 crore for the fiscal year 2026, reflecting its confidence in the infrastructure sector's growth prospects.

Strategic Focus

NCC is concentrating its efforts on key sectors including buildings, transportation, water, and electrical projects. The company emphasizes disciplined project management and cost control measures to ensure efficient execution of its growing order book.

A.A.V. Ranga Raju, Managing Director of NCC Limited, stated, "Our strong order book position provides us with a stable foundation for ongoing project execution and moderate visibility. We are approaching the rest of FY26 with a healthy bid pipeline and continued project selectivity, ensuring our preparedness for a gradual market recovery."

Financial Stability

NCC has maintained its AA- (Stable Outlook) credit rating from India Ratings & Research, reflecting the company's financial prudence and focus on capital discipline. As of June 30, the company reported a net debt of ₹1,574 crore on a consolidated basis.

Segment Performance

The construction segment continues to be the primary revenue driver for NCC, contributing ₹5,151.33 crore to the total revenue in Q1. The real estate segment added ₹27.66 crore to the company's top line during the same period.

ESG Initiatives

NCC Limited reaffirmed its commitment to environmental, social, and governance (ESG) practices, highlighting sustained progress on various initiatives and workplace safety programs. This focus on responsible and sustainable business practices aligns with growing investor and stakeholder expectations in the infrastructure sector.

As NCC Limited navigates through FY26, its substantial order book and strategic focus on key infrastructure segments position the company well to capitalize on India's ongoing infrastructure development drive. The company's emphasis on financial prudence, coupled with its strong market presence, sets a solid foundation for future growth in the dynamic construction and infrastructure landscape.