Why did NCC shares crashes by 9% today? Here’s the Reason

Synopsis: Small-cap EPC stock fell by 9 percent after two-year highway authority debarment order, raising concerns over future tender participation and sentiment outlook. 

Shares of a leading infrastructure and construction company engaged in EPC contracts, BOT projects, and PPP developments across several segments, saw its shares fall soon after its subsidiary, O B Infrastructure Limited, received a two-year debarment order from the National Highways Authority of India.

With its market cap of more than Rs 9,000 Cr, NCC Ltd saw its stock hit an intraday low of Rs 136 which is almost 9 percent lower than the previous close of Rs 149, but the same stock has given a compounded return of 18 percent in the last three years.

What’s the reason?

NCC Limited received a two-year debarment order from the National Highways Authority of India, restricting participation in new tenders through its step-down subsidiary O B Infrastructure Limited(OBIL). The restriction, effective February 17, 2026, relates to a highway BOT project dispute. The company is reviewing legal options and regulatory implications now.

The debarment arose from disputes between OBIL and the National Highways Authority of India over delays in executing a highway project in Uttar Pradesh. OBIL alleged delays were caused by land handover issues and contractual breaches by NHAI, leading to arbitration proceedings and resulting in the debarment action against the company.

The Order Book

Even though Future tender opportunities may be affected, NCC Limited clarified there is no impact on order book or ongoing projects. As of Q3FY26, The company’s order book stands at more than Rs 79,500 crore, led by buildings at 31 percent and transportation at 22 percent. Electrical T&D contributes 18 percent, while mining accounts for 13 percent. Water and railways holds 10 percent, and Irrigation & others form 7 percent, highlighting diversified exposure with dominance in infrastructure segments driving future revenue visibility.

In Q3FY26,The company’s order inflow totals Rs 12,430 crore, heavily driven by mining at 55 percent, while Buildings contribute 31 percent, while transportation adds 7 percent. Water and irrigation represent 4 percent, and electrical T&D contributes only 2 percent, indicating mining-led growth momentum and selective expansion across other infrastructure verticals currently underway.

While the company’s order execution stands at more than Rs 4,800 crore, with buildings leading at 38 percent, reflecting construction activity. Electrical T&D contributes 21 percent, while transportation and mining each account for 16 percent. Water & railways add 5 percent, and irrigation others add 3 percent, showing balanced execution across infrastructure segments supporting steady revenue realization and operational continuity.

Business & Financial Overview

NCC Limited, incorporated in 1978, is one of India’s leading construction and infrastructure companies, engaged in executing turnkey EPC contracts and BOT projects under the Public-Private Partnership (PPP) model. Headquartered in Hyderabad, Telangana, the company operates across buildings, transportation, water & environment, electrical (T&D), irrigation, and mining segments, with a strong presence across India’s core infrastructure development landscape.

NCC Limited’s clients primarily include central and state governments and PSUs such as BSNL, Coal India subsidiaries, metro rail authorities, highway agencies, and water resource departments. 

Significant projects include Mumbai Metro Line-6, Bengaluru Metro Rail works, and major national highway construction projects, along with water supply schemes, mining contracts, hospitals, institutional buildings, and BharatNet digital infrastructure across India.

In the latest quarter the company saw its YoY revenue fall by 9 percent, going from Rs 5,345 Cr in Q3FY25 to Rs 4,868 Cr in Q3FY26, while the QoQ went up by 7 percent from Rs 4,543 Cr in Q2FY26. The YoY Net Profits also fell by 34 percent, going from Rs 206 Cr in Q3FY25 to Rs 135 Cr in Q3FY26, while the QoQ fell by 19 percent from Rs 167 Cr in Q2FY26.

The company has a 3 year sales CAGR of 26 percent, while the TTM is at a negative 8 percent. The company’s 3 year profit CAGR is at 34 percent, while the TTM number is at a negative 10 percent. The company also has a ROCE of 22 percent and a ROE of 11 percent.

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