NBCC (India) Limited: Building Momentum with Strong Q2 & H1 FY26 Results

NBCC (India) Limited, a prominent Navratna CPSE, has delivered a robust financial performance for the second quarter and first half of the financial year 2025-26, signaling strong operational execution and strategic clarity. The company reported a consolidated total income of INR 3,017 crore for Q2 FY26, marking a healthy 20% year-on-year increase. On a standalone basis, the Profit After Tax (PAT) surged by a significant 40% to INR 173 crore, while revenue from operations grew by 13.05% to INR 2,094 crore. For the first half (H1 FY26), standalone PAT saw a robust 36.28% growth to INR 286.63 crore, with revenue from operations increasing by 7.75% to INR 3,749 crore. This performance underscores NBCC's resilience and strategic positioning in India's infrastructure and real estate sectors.

Segmental Performance and Order Book Strength

The Project Management Consultancy (PMC) segment continues to be the primary revenue driver, contributing approximately 97.45% of the consolidated revenue in Q2 FY26, with a revenue of INR 2,835.94 crore. The Engineering Procurement & Consultancy (EPC) segment contributed INR 67.40 crore (2.32%), while Real Estate accounted for INR 4.66 crore (0.16%). This dominance of the PMC segment highlights NBCC's core strength in managing large-scale government and public sector projects. The company's consolidated order book stands at an impressive INR 1,28,381 crore, providing substantial revenue visibility for the coming years. In Q2 FY26 alone, NBCC secured new business worth INR 7,600 crore, contributing to a total of INR 10,000 crore in new orders during H1 FY26. Key projects secured include urban development and innovation projects for Rajasthan State Industrial Development & Investment Corporation (RIICO) worth INR 3,135.59 crore and the development of Naveen Nagpur for Nagpur Metropolitan Region Development Authority (NMRDA) valued at INR 2,966.10 crore.

Strategic Initiatives and Future Outlook

NBCC is actively pursuing several strategic initiatives to sustain its growth trajectory. The company has signed strategic MOUs with an Australian Real Estate developer and Pantheon Elysee Real Estate Development LLC for projects in UAE, aiming to expand its global footprint. Domestically, an MoU with the Department of Postal for land development across India is set to unlock significant real estate opportunities. Management acknowledged that while EBITDA margins for Q2 FY26 were slightly impacted by lower contributions from real estate projects and reduced marketing fees from Amrapali projects, they are confident in improving margins year-on-year.

For the Imperia project in Bhubaneswar, NBCC has strategically shifted from outright selling to a leasing model, responding to strong demand from IT sectors to generate fixed, recurring revenue. A similar approach is being considered for parts of the Ghitorni land project in Delhi, which is expected to be auctioned in the coming months and could generate INR 7,000-8,000 crore in revenue. The Amrapali project's Phase 2 has commenced, with an estimated INR 17,000 crore in sales and INR 12,000 crore in construction costs, expected to significantly boost future top line and bottom line.

Addressing Challenges and Management Confidence

Management transparently addressed execution delays in large redevelopment projects like MAHAPREIT and J&K, attributing them to funding arrangements and approval processes inherent in self-sustainable models. Despite these challenges, the company is confident in achieving its full-year revenue guidance of INR 14,000-15,000 crore for FY26, with a standalone PAT margin of 7-8% and an EBITDA margin of 6-6.5%. For FY27, NBCC targets a 20% growth in topline revenue, and for FY27-28, anticipates double-digit EBITDA figures, driven by upcoming projects like 37D and Ghitorni. The company also declared a 2nd interim dividend of INR 0.21 per equity share for FY26, demonstrating its commitment to shareholder returns.

NBCC's Q2 and H1 FY26 results reflect a company with strategic clarity, robust project pipeline, and a proactive approach to market dynamics. The strong order book, coupled with a flexible real estate strategy and continuous efforts to secure new business, positions NBCC for sustained growth and profitability in the evolving infrastructure landscape.