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Informist, Friday, Aug. 7, 2026

 

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--CONTEXT: Comments by NCC mgmt in a post-earnings analyst concall
--NCC: See FY27 order inflow at INR 220 bln-INR 250 bln
--NCC: Do not see increase in prices of steel, cement going forward
--NCC: Expect commodity prices to stabilise in Jul-Sept
--NCC: Generally remove slow-moving orders from book
--NCC: Orders from various state govt makes 19% of book
--NCC: Orders from central govt made 14% of book on Jun 30
--NCC: Started taking orders from pvt sector, made 4% of order book
--NCC: Pending order value for BharatNet project INR 65 bln
--NCC: BharatNet project fixed-price one, rising costs to hit gains
--NCC: Expect to complete Maharashtra smart meter project by March
--NCC: To install 7-8 mln smart meters across projects in Maharashtra, Bihar
--NCC: Have installed beyond 50% of Maharashtra smart meter project

 

By Ruchira Kagita and Gopika Balasubramanium

 

MUMBAI – NCC Ltd. started the financial year 2026-27 (Apr-Mar) on a strong footing and with all of its order book, which totalled INR 812.14 billion as of Jun. 30, in executable mode. The top executives are confident of their ability to fulfil orders spanning two to five years and do not hold an iota of doubt in this regard. The company has a prospective order pipeline of INR 2.5 trillion and it sees order inflows worth INR 220 billion–INR 250 billion during FY27. It plans to spend INR 5 billion as capital expenditure for the current financial year, the key managerial personnel reiterated.

 

Of the total book, orders from the central government comprised 14%, from the state governments 19%, and those from public sector undertakings around 60%. NCC has started taking orders from the private sector as well, the company said, and these made up about 4% of its order book at the end of the June quarter. Slow or not-moving orders are typically removed from the book, they said.

 

Amid the ongoing supply chain crisis due to the war in West Asia, prices of crude-linked products, aluminium, and copper had inched up, but steel and cement remained mostly stable, the company said. The company also witnessed price increases in the optical fibre cables it uses for its BharatNet project. However, commodity prices are expected to stabilise in the September quarter, they said.

 

SMART METER PROJECTS

The top brass at NCC expect all of their smart meter contracts across Maharashtra and Bihar to be complete by March next year. It plans to install seven to eight million smart meters in both these states. The bulk of these installations are in the western Indian state and around 50% of smart meters have already been installed, the company said. 

 

The company's total consolidated net debt was INR 35.13 billion and of this, the cumulative debt drawn for the smart meter projects stood at INR 14.61 billion as of Jun. 30.

 

KEN-BETWA LINK PROJECT

NCC is making good progress on India's first river interlinking project in Madhya Pradesh, the company said in response to an analyst's concerns regarding the execution of this project, given the agitations against it. Several complaints were raised pertaining to the displacement of indigenous tribal communities.

 

"..we have seen all the media reports, and we understand that, you know, the local administration is in touch with the agitators, and, you know, the issues are slowly getting resolved," the top management said. They do not see any major adverse impact to the execution of this project. 

 

BHARATNET PROJECT

The order to design, construct, operate, and maintain the middle-mile network of BharatNet mainly in the telecommunication circles of Uttarakhand and Madhya Pradesh, still has a pending order value worth INR 65 billion, the top executives said. High input costs may result in lesser profit from the project, the top executives said, as this order was booked at a fixed price. 

 

However, prices are not expected to remain elevated for too long, and they are expected to smoothen out over time. The company collected INR 1.85 billion for the progress it has made in this project during the June quarter, and received INR 6.20 billion cumulatively till date, the company said. NCC had received the contract for the BharatNet project from Bharat Sanchar Nigam Ltd. in March, 2025.  

 

JAL JEEVAN MISSION
Among other key projects, the company earned INR 27.71 billion till date from drinking water supply projects secured under the government's mission. Of this, it received INR 6.10 billion in Apr-Jun. It aims to complete most of these orders during the ongoing financial year.

 

On order book front, the company has contracts worth INR 58.8 billion related to this mission as of Jun. 30. These include surface water and ground water projects. In July, it received around INR 4 billion for the water projects from clients. "We are expecting that this flow of money, release of payment should continue," a top executive said. 

 

Going forward, NCC expects its revenue to grow 8-10% for FY27 and its earnings before interest, taxes, depreciation, and amortisation margin for the fiscal year to be 8.5-9.0%. Its EBITDA margin for FY26 was 8.3% and its total sales had declined around 9% to INR 176.69 billion.

 

For the June quarter, the NCC reported a net profit of INR 1.87 billion, down 1.4% on year and its revenue rose 12% to INR 49.12 billion. Both profit and revenue beat the Street's expectations. Friday, shares of the company closed 1.3% higher at INR 145.59 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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