Navratna stock jumps 5% after signing MoU to develop data centre projects in India

This Navratna PSU stock is involved in construction, project management, and redevelopment services, focusing on infrastructure, residential, commercial, and institutional projects both within India and internationally, jumped 5 percent after signing an MOU with RAILTEL Corporation of India to jointly develop Data Centre projects in India and abroad.

Stock Price Movement

With a market capitalization of Rs. 22,439.70 crores, the share of NBCC (India) Limited has reached an intraday high of Rs. 83.31 per equity share, rising nearly 4.88 percent from its previous day’s close price of Rs. 79.43. Since then, the stock has retreated and is currently trading at Rs. 83.11 per equity share. 

What Happened

On April 7, 2025, NBCC (India) Limited and RAILTEL Corporation of India Limited signed a Memorandum of Understanding (MoU) to jointly develop Data Centre projects in India and abroad over the next five years. 

NBCC will provide Project Management Consultancy for constructing Data Centre buildings and related infrastructure, while RAILTEL will handle IT services, including planning, designing, installation, and operations. This partnership aims to combine the strengths of both organizations, improving client service and project efficiency for long-term success.

Additionally, NBCC (India) Limited has been awarded work orders totaling approximately Rs. 120.90 crore in the normal course of business. The projects include the construction of a multistoried building for six courts in Gudivada, Andhra Pradesh (Rs. 46.69 crore), a 14-court building complex in Bhimavaram, Andhra Pradesh (Rs. 72.17 crore), and the upgradation of the 5th floor of the TEC Building in New Delhi (Rs. 2.04 crore).

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Order Book

As of January 2025, NBCC’s consolidated order book stands at Rs. 1 lakh crore, with the company holding the largest share of Rs. 82,500 crore. Other key contributors include HSCC with Rs. 10,600 crore, HSCL with Rs. 6,800 crore, and NSL with Rs. 200 crore. 

In FY25, the company secured major projects worth Rs. 12,712 crore, including a 406-acre satellite township in Srinagar. Other significant projects include 16 Supertech projects (Rs. 9,445 crore), Sahkari Awas in UP (Rs. 3,500 crore), Goa redevelopment (Rs. 1,463 crore), and MTNL land development in Delhi (Rs. 1,356 crore).

Management Guidance

The company expects revenue growth of 25 percent to 35 percent over the next 2-3 years, supported by ongoing projects and new orders. It also anticipates a 0.5 percent to 1 percent increase in margins, driven by fixed overheads and high-margin redevelopment projects, which offer 8 percent to 9 percent project management consultancy (PMC) charges.

Recent quarter results

NBCC (India) Limited’s revenue rose from Rs. 2,424 crore in Q3 FY24 to Rs. 2,827 crore in Q3 FY25, a growth of 16.63 percent. The net profit also increased by 24.56 percent, from Rs. 114 crore in Q3 FY24 to Rs. 142 crore in Q3 FY25.

Written By – Nikhil Naik

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