NCC Q2 revenue rises 32%, while PAT margin falls to 3.05%

NCC Limited reported Q2 FY2027 consolidated revenue of Rs 6,042 crore for the quarter ended 30 September 2026, up 32% year-on-year, while profit after tax (PAT) attributable to shareholders rose 19% to Rs 184 crore and PAT margin fell to 3.05% from 3.37%. Revenue was also 3% above Q1 FY2027, but PAT declined 15% sequentially.

How did NCC's Q2 FY2027 consolidated revenue change?

NCC reported consolidated revenue of Rs 6,042 crore in Q2 FY2027, compared with Rs 4,585 crore in Q2 FY2026 and Rs 5,842 crore in Q1 FY2027. The result represents 32% year-on-year growth and 3% quarter-on-quarter growth, with the sequential revenue increase amounting to Rs 200 crore.

For H1 FY2027, NCC reported consolidated revenue of Rs 11,884 crore, up 21% from Rs 9,793 crore in H1 FY2026. Its five-year trend table separately lists revenue from operations of Rs 11,827 crore for H1 FY2027, while full-year FY2026 revenue from operations was Rs 20,823 crore; the presentation does not explain the difference between the H1 figures.

Which businesses contributed to NCC's Q2 revenue?

NCC's operational revenue composition shows construction revenue of Rs 4,917 crore in Q2 FY2027, nearly unchanged from Rs 4,912 crore in Q1 FY2027. Pachhwara Coal Mining increased revenue to Rs 843 crore from Rs 715 crore, while the GMLR tunnel joint venture rose to Rs 250 crore from Rs 129 crore.

The two MSEDCL smart-meter special purpose vehicles reported Rs 253 crore in Q2 FY2027, down from Rs 264 crore in Q1 FY2027, and NCC Urban Infrastructure recorded Rs 44 crore against Rs 53 crore. Inter-company eliminations rose to Rs 292 crore from Rs 261 crore, leaving consolidated revenue from operations of Rs 6,015 crore, compared with Rs 5,812 crore in the preceding quarter.

NCC operates seven core engineering, procurement and construction verticals: buildings, transportation, water and environment, electrical transmission and distribution, mining, railways, and irrigation. The group structure also includes a 51% holding in Pachhwara Coal Mining, a 100% holding in NCC Quantum Technologies, a 51% interest in the GMLR tunnel joint venture, and an 80% holding in NCC Urban Infrastructure.

Why did NCC's PAT margin decline in Q2 FY2027?

NCC's PAT margin was 3.05% in Q2 FY2027, down 32 basis points from 3.37% in Q2 FY2026, although PAT rose to Rs 184 crore from Rs 155 crore. A basis point is one-hundredth of a percentage point, and the figures show that the Rs 1,457 crore year-on-year revenue increase did not translate into a higher share of revenue as attributable profit.

The margin was also 65 basis points below 3.70% in Q1 FY2027, when PAT was Rs 216 crore. PAT therefore fell by Rs 32 crore sequentially despite the Rs 200 crore increase in revenue; the presentation reports the movement but provides no cost bridge or stated reason for the decline.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was Rs 528 crore in Q2 FY2027, up 34% from Rs 393 crore a year earlier but down 3% from Rs 545 crore in Q1 FY2027. EBITDA margin was 8.79%, 13 basis points above Q2 FY2026's 8.66% but 59 basis points below Q1 FY2027's 9.38%.

For H1 FY2027, the detailed consolidated profit-and-loss table reports PAT attributable to shareholders of Rs 401 crore, up 16% from Rs 347 crore in H1 FY2026, with margin falling to 3.37% from 3.54%. The same page's summary states H1 PAT of Rs 428 crore, and NCC does not reconcile that figure with the detailed table.

How did NCC's standalone results compare with consolidated performance?

NCC's standalone Q2 FY2027 revenue was Rs 4,957 crore, up 31% from Rs 3,775 crore in Q2 FY2026 and broadly unchanged from Rs 4,952 crore in Q1 FY2027. Standalone EBITDA increased 50% year-on-year to Rs 417 crore, while its 8.48% margin was 103 basis points above the prior-year quarter and 53 basis points below Q1 FY2027.

Standalone PAT rose 60% year-on-year to Rs 163 crore from Rs 102 crore, but was 13% below Rs 187 crore in Q1 FY2027. The standalone PAT margin was 3.29%, compared with 2.70% in Q2 FY2026 and 3.78% in Q1 FY2027; the consolidated year-on-year PAT increase was lower at 19%.

NCC's consolidated order book stood at Rs 80,167 crore as at 30 September 2026, up 11% year-on-year, while standalone order book was Rs 71,293 crore, also up 11%. Consolidated Q2 FY2027 order inflow was Rs 4,838 crore, below Rs 6,223 crore in Q2 FY2026 but above Rs 3,889 crore in Q1 FY2027.

What changed in NCC's balance sheet by September 2026?

NCC's consolidated net debt was Rs 3,887 crore at 30 September 2026, compared with Rs 2,815 crore at 31 March 2026. Gross debt increased to Rs 4,110 crore from Rs 3,457 crore, while total equity rose to Rs 8,300 crore from Rs 8,029 crore; the Q2 key-numbers page states net debt-to-equity of 0.50 times.

Consolidated total assets increased by Rs 964 crore to Rs 26,970 crore at 30 September 2026. Current assets rose by Rs 709 crore to Rs 22,952 crore, non-current liabilities increased by Rs 378 crore to Rs 2,022 crore, and net worth attributable to shareholders excluding non-controlling interests rose to Rs 8,132 crore from Rs 7,869 crore.

The Rs 80,167 crore consolidated order book at 30 September 2026 was Rs 2,837 crore below the Rs 83,004 crore recorded at the end of FY2026, although it was above Rs 71,568 crore at the end of FY2025. NCC's presentation provides no target for future order inflow or timetable for converting the order book into revenue.

Conclusion

NCC delivered higher Q2 FY2027 consolidated revenue, EBITDA and PAT than in Q2 FY2026, led by 32% revenue growth to Rs 6,042 crore. However, PAT grew 19%, slower than revenue, and margin narrowed to 3.05%; sequentially, EBITDA, PAT and their margins declined even as revenue rose.

The next disclosed measures to watch are order inflow, execution from the Rs 80,167 crore order book as at 30 September 2026, and consolidated net debt after its increase to Rs 3,887 crore. NCC's presentation also leaves unresolved the difference between Rs 401 crore in detailed H1 PAT and Rs 428 crore in the H1 summary.