₹79,571 Cr Order Book: Stock falls 5% after announcing its Q3 results

SYNOPSIS: Q3 FY26 saw sequential revenue growth but YoY declines, weaker profits and margins, cautious outlook amid execution challenges, guidance withdrawal, merger update, yet a growing order book supporting medium-term visibility.

During Friday’s trading session, shares of a company involved in undertaking turnkey EPC contracts and BOT projects on a Public-Private Partnership basis tumbled nearly 5 percent on BSE, after reporting mixed Q3 FY26 results and an order book of Rs. 79,571 crores.

With a market cap of Rs. 9,424 crores, shares of NCC Limited were trading in the red at Rs. 150 on BSE, down by over 1 percent, compared to its previous closing price of Rs. 152.05. So far in 2026, the stock has delivered negative returns of around 7 percent, and has fallen by over 30 percent in the last six months.

Financials

NCC Limited announced the financial results for the third quarter of FY26 on Thursday after market hours, as per the latest regulatory filings with the stock exchanges.

For Q3 FY26, the company posted a consolidated revenue from operations of Rs. 4,868.3 crores, reflecting a sequential growth of around 7 percent QoQ compared to Rs. 4,543 crores in Q2 FY26. In contrast, on a year-on-year basis, revenue decreased by around 9 percent from Rs. 5,344.5 crores recorded in Q3 FY25.

Net profit for the quarter stood at Rs. 135 crore, indicating a decrease of more than 19 percent QoQ from Rs. 167.3 crores in Q2 FY26, as well as a decline on a year-on-year basis by about 34 percent from Rs. 205.86 crores reported in Q3 FY25. Additionally, operating performance declined during the quarter, with EBITDA falling marginally by around 1 percent to Rs. 436 crore from Rs. 441 crore in Q3 FY25.

For the quarter ended December 2025, the construction segment remained the dominant contributor, generating Rs. 4,826.6 crore, which accounted for around 99 percent of total revenue. However, construction revenue declined around 9 percent YoY from Rs. 5,286 crore in Q3 FY25.

The real estate segment contributed Rs. 41.7 crore, forming about 1 percent of total revenue, and also witnessed a YoY decline of nearly 29 percent from Rs. 58.6 crore last year.

Additionally, NCC’s Board approved the effective date for the amalgamation of NCC Infrastructure Holdings Ltd (NCCIHL) with NCC Limited. Upon receipt of the certified copy of the order from the NCLT, Hyderabad Bench, approving the scheme, the effective date of amalgamation will be 28th February 2026. Upon the scheme becoming effective, NCCIHL will stand dissolved without being wound up.

The management chose not to offer even qualitative guidance for H2 FY26, citing ongoing execution challenges. Any clarity on the outlook is expected only by March 2026. The company had already withdrawn its revenue and margin guidance for the full FY26 followed the Q2 results, when the company flagged multiple headwinds. These included an extended monsoon season, delays in project commencement due to approval-related issues, and elongated payment cycles under Jal Jeevan Mission (JJM) projects, all of which weighed on execution visibility.

Despite the absence of formal guidance, management indicated that its priority remains on operational discipline and efficiency, with efforts directed toward keeping operating margins above the 7 percent level.

Order Book

In Q3 FY26, the company’s consolidated order book stood at Rs. 79,571 crore, representing an increase of around 11 percent from Rs. 71,957 crores reported on Q2 FY26. Meanwhile, on the execution front, the company executed orders worth Rs. 4,817 crore in Q3 FY26.

The current order book is led by the Buildings segment, which accounted for 31 percent of the total. Transportation followed with 22 percent, while Electrical (T&D) contributed 18 percent. Mining formed 13 percent of the order book, and Water & Railways together made up 10 percent, with the balance coming from irrigation and other segments.

During the quarter, order inflows amounted to Rs. 12,430 crore, dominated by the Mining segment, which contributed a significant 55 percent. Buildings accounted for 31 percent of fresh inflows, while Transportation made up 7 percent. The remaining inflows were shared between Electrical (T&D) and Water & Railways, contributing 2 percent and 4 percent, respectively.

NCC Limited is engaged in the infrastructure sector, primarily in the construction of industrial, institutional, hospital, hospitality and commercial buildings, airports, housing projects, transportation projects including roads, bridges, flyovers, metros and tunnels, water supply and environment projects, railway projects, electrical distribution, transmission lines and smart meter projects, irrigation projects, mining projects, etc.

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