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Informist, Wednesday, Aug. 5, 2026

 

By Upasika Singhal

 

MUMBAI - NCC Ltd. is expected to have a slow quarter and report a fall in net profit for the June quarter due to supply chain disruptions, high raw material costs, execution challenges in West Asia, and higher interest costs, according to brokerages tracking the company. Despite this, the company is expected to post moderate growth in revenues for the quarter due to a healthy order book and good order inflows, brokerages said.

 

NCC is expected to report a net profit of INR 1.66 billion for the June quarter, down 13% from the year-ago quarter, according to the average of estimates from six brokerages. The highest estimate for the company's net profit is INR 1.97 billion from Prabhudas Lilladher Pvt. Ltd. and the lowest estimate is INR 1.40 billion from SMIFS Ltd.

 

The company's net profit is expected to decline due to lower operating margins and higher interest costs, brokerages said. The fall in other income will also weigh on the company's profitability during the quarter, SMIFS said.

 

The company's standalone revenues are expected to grow nearly 8% on year to INR 47.10 billion, according to brokerages. The highest estimate for revenue is INR 49.22 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 45.97 billion from Prabhudas Lilladher.

 

The company's revenue growth is expected to be supported by the execution of the healthy order book, although brokerages expect the pace of execution to remain constrained by supply chain disruptions, labour availability issues, and slower ramp up of recently awarded projects. Delays in payment collections under the Jal Jeevan Mission are also expected to weigh on the company's order book execution.

 

NCC's earnings before interest, tax, depreciation, and amortisation are expected to remain flat on year at INR 3.96 billion, brokerages said. The highest EBITDA estimate is INR 4.14 billion from Prabhudas Lilladher and the lowest is INR 3.81 billion from SMIFS. The company's EBITDA margin is expected to remain under pressure due to elevated raw material costs, supply chain disruptions, and hindrances in the execution of international projects, brokerages said. The EBITDA margin is expected to be 8.2-9.0%, brokerages said.

 

Order inflows will remain healthy in the June quarter, with NCC securing fresh orders worth around INR 41 billion, JM Financial Institutional Securities Pvt. Ltd. said. The company has a robust order book worth INR 723 billion, providing revenue visibility of 3.9 times the annual revenue, Prabhudas Lilladher said. However, the company did not provide guidance for the current financial year citing the war in West Asia, shifting trade policies, and the possibility of austerity measures from the government, the brokerage added.

 

Order execution across the engineering and construction sector is expected to remain moderate in the June quarter due to labour shortages and supply chain disruptions. However, healthy order inflows, stable balance sheets, and strong order books are expected to provide revenue visibility for the sector over the medium term, brokerages said.

 

NCC Ltd. is an infrastructure conglomerate that specialises in turnkey engineering, procurement, and construction contracts across buildings, transportation, water, and railways. The company will detail its June quarter earnings Thursday. Investors will watch out for the management's guidance on progress on the execution of large projects, conversion of bidding opportunities into final orders, and updates on receivables under the Jal Jeevan Mission scheme.

 

Wednesday, shares of the company ended at INR 143.57 apiece on the National Stock Exchange, up marginally from Tuesday. The stock has fallen over 10% since the company announced its earnings for the March quarter.

 

Of the 10 research reports on the company available with Informist, eight have a "buy" recommendation, with an average target price of INR 203, which is over 41% higher than the closing price Wednesday. One brokerage has a "hold" call on the stock with an average target price of INR 160, and one has a "sell" call on the stock with an average target price of INR 167.

 

Following are the June quarter earnings estimates for NCC Ltd. from six brokerages, in descending order of the estimate of net profit, in INR billion:

 

Broking Firms	Net Revenue	Net Profit	EBITDA
Prabhudas Lilladher Pvt. Ltd.	45.97	1.97	4.14
Elara Securities (India) Pvt. Ltd.	46.97	1.76	--
Anand Rathi Share and Stock Brokers Ltd.	49.23	1.65	--
HDFC Securities Ltd.	46.80	1.60	3.90
JM Financial Institutional Securities Pvt Ltd	46.85	1.57	3.98
SMIFS Ltd.	46.78	1.40	3.81
Average	47.11	1.66	3.96

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Pankaj Aher

 

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