NCC Q4 FY26: Record Order Book, Slower FY26 Revenue, and a Clear Focus on Collections

NCC Limited ended FY26 with a contrasting set of signals. The company closed the year with its highest ever consolidated order book of INR83,004 crore, up 16% year on year, but delivered lower revenues versus FY25 as execution in water and select state-funded segments was paced to collections. Management described FY26 as a year shaped by sector-level funding-cycle stress, especially in Jal Jeevan Mission-linked payments and parts of state-funded infrastructure.

For the year ended March 31, 2026, standalone revenue from operations was INR17,463.49 crore, down 9% YoY. Consolidated revenue from operations was INR20,823.00 crore, down 6% YoY. Profitability held up within a narrow band, but management noted margin pressure from operating deleverage and higher finance costs when working capital peaked through Q1 to Q3.

FY26 performance in numbers

On a standalone basis, FY26 EBITDA was INR1,448 crore, translating to an EBITDA margin of 8.29% of turnover, while PAT was INR576.76 crore, or 3.26% of revenue. Consolidated EBITDA came in at INR1,836 crore with an 8.82% margin, while consolidated PAT was INR723.96 crore.

The company also declared a dividend recommendation of INR2.20 per equity share (110%) for FY26, subject to shareholder approval.

Revenue mix and what moved in FY26

NCC’s FY26 group revenue composition in the investor presentation highlights a predominantly construction-led profile, with additional contributions from coal mining, smart meters, tunnels, and real estate. On a consolidated basis, construction remains the core, supported by subsidiaries and SPVs.

The company explained the FY26 revenue moderation as consistent with broader sector trends, citing stress in water-sector receivables and select state-funded segments. Management stated that water-vertical execution was calibrated to collection visibility through Q1 to Q3, and a subset of road and building projects saw slower progress due to right-of-way handovers and environmental clearance cycles. The company said approvals eased into Q4, supporting a pickup in execution pace.

Working capital, debt, and cash conversion: the key story line

FY26 included a notable working capital cycle expansion and a subsequent normalization in Q4. Standalone net working capital days moved from 76 in Q4 FY24 to a peak of 119 in Q3 FY26, then eased to 97 in Q4 FY26. The company linked this primarily to the payment cycle in water and Jal Jeevan Mission projects.

Debt levels followed a similar pattern. Standalone gross debt rose to INR2,980 crore in Q3 FY26 and then declined to INR2,251 crore in Q4 FY26. Standalone net debt ended Q4 FY26 at INR1,667 crore. On a consolidated basis, net debt ended at INR2,815 crore.

Despite these pressures, the cash conversion narrative remained supportive at the standalone level. The investor presentation’s earnings quality slide shows FY26 PAT of INR577 crore against cash from operations of INR883 crore.

Finance costs were a major point of discussion. Management provided a breakdown of standalone finance costs of INR645 crore for FY26, comprising interest on loans of about INR220 crore, interest on mobilization advances of INR154 crore, commissions on BGs and LCs of INR162 crore, and other bank and interest charges of INR109 crore. Management also stated that netting off interest income results in a finance cost of INR554 crore, or 3.18%.

Subsidiaries and new execution levers

NCC’s group structure and subsidiary disclosures provide additional context for its consolidated performance.

Pachhwara Coal Mining Pvt Ltd, where NCC holds 51%, reported FY26 revenue of INR2,711 crore and PBT of INR107 crore. The project profile states a 30-year mine life and rated capacity of 15 MTPA, achieved in FY23. Management indicated output should remain in a similar range going forward.

NCC Urban Infrastructure Limited, where NCC holds 80%, reported FY26 revenue of INR276 crore and PAT of INR29 crore. Total debt at NCC Urban was INR124 crore as of Q4 FY26.

Smart meters are another visible line item. The investor presentation states FY26 revenue of INR1,267 crore from two AMI SPVs for MSEDCL Maharashtra. During the concall, management stated that about INR460 crore has already been invested in the two SPVs and that there is no further pending investment call. Management also linked higher consolidated finance costs to the smart meter loans within SPVs.

Why FY27 guidance is missing, but not the signals

The most debated point on the concall was the absence of FY27 guidance. Management stated it has decided not to give guidance for FY27 across parameters like revenue, margin, and order inflow due to an uncertain environment with multiple variables. It said the decision would be revisited after the conclusion of Q1.

Even without guidance, the company provided some forward indicators. Management stated a capex plan of INR500 crore for FY27. It also stated that the company has already won around INR1,700 crore of projects in April FY27.

The tunnel initiative is a key capex-linked execution lever. Management stated FY26 capex included TBM spend of about INR310 crore to INR320 crore for the GMLR tunnel project in Mumbai. It stated the overall project value is about INR6,000 crore, with NCC’s execution portion about INR3,000 crore and a project timeline of about five years. It also stated TBM capitalization is expected by the end of Q2 FY27, with depreciation starting from Q3.

Takeaways

NCC’s FY26 story is best understood as a cycle-management year rather than a demand problem. The company ended the year with a record order book and a diversified vertical footprint, but paced execution where receivable visibility was limited. The Q4 improvement in collections, sequential reduction in debt, and continued bidding activity into FY27 provide near-term markers to watch.

The next validation point is how quickly working capital normalizes further and whether execution sustains at higher levels without additional finance-cost drag. Management’s decision to revisit guidance after Q1 FY27 suggests the company itself is looking for the same evidence: stability in payment cycles, clarity on input costs, and predictable project progress.