NCC Q4 FY26 profit falls 19%; order book hits ₹83k cr

Stock reacts to earnings miss

NCC shares slipped 4.38% to ₹152.95 after the company reported a weaker March-quarter performance on the profitability line. Consolidated net profit for Q4 FY26 fell 18.8% year-on-year to ₹206.02 crore, compared with ₹253.82 crore in Q4 FY25. The decline came even as revenue from operations edged up, suggesting pressure from costs, execution mix, or other operating items within the quarter. The results also came with a set of balance-sheet and order book updates that investors typically track closely for EPC and infrastructure companies.

Q4 FY26: revenue up slightly, profit and PBT decline

Revenue from operations rose 1.7% year-on-year to ₹6,232.71 crore in Q4 FY26. Another disclosure in the same set of information pegged consolidated turnover at ₹6,250.98 crore for the March quarter, versus ₹6,189.36 crore a year ago, indicating broadly flat top-line growth.

Profit before tax (PBT) stood at ₹293.59 crore in Q4 FY26, down 20% from ₹367.16 crore in the corresponding quarter last year. EBITDA slipped 1.08% to ₹550 crore from ₹556 crore in Q4 FY25. In management commentary, NCC also shared margin movements for the quarter, including standalone EBITDA margin of 8.44% versus 9.21% a year ago, and consolidated EBITDA margin of 8.83% versus 9.07%.

Segment performance: construction dominates

NCC’s construction segment remained the main contributor in Q4 FY26. Revenue from construction was ₹6,183.32 crore, up 1.49% year-on-year. Revenue from the real estate segment was ₹49.39 crore, up 28.52% year-on-year.

The segment split indicates that the quarter’s overall revenue trajectory continued to be driven by execution in the core EPC business, with real estate remaining small in absolute terms. For investors, this also means quarterly movements are largely linked to project execution pace, certification cycles, and client payment patterns in government-linked infrastructure orders.

Full-year FY26: lower revenue and profit

On a full-year basis, NCC’s consolidated net profit declined 17.6% to ₹675.32 crore in FY26. Revenue from operations was reported at ₹20,823 crore, down 6.2% year-on-year. In management commentary, consolidated turnover for the full year was also cited at ₹20,944 crore versus ₹22,355 crore in the previous year, pointing to a similar contraction.

Standalone revenue for Q4 FY26 was stated at ₹5,382 crore versus ₹5,445 crore in Q4 FY25, a 1% decline. For the full year, standalone turnover was reported at ₹17,669 crore versus ₹19,393 crore, down 9%. EPS was reported at 3.23 for Q4 FY26 versus 3.4 in Q4 FY25, while FY26 EPS was 9.19 versus 12.12 in the prior year.

Order book grows 16% to ₹83,004 crore

Despite the softer profitability trend, NCC reported growth in its order book. On a full-year basis, the consolidated order book stood at ₹83,004 crore versus ₹71,568 crore in FY25, reflecting 16% year-on-year growth. Another statement cited the consolidated order book at ₹83,400 crore as of March 31, 2026.

Order inflows for FY26 were ₹31,884 crore compared with ₹32,888 crore in FY25, a 3% year-on-year decline. The company said the book-to-bill ratio was about 4x, pointing to multi-year revenue visibility. Management also stated that Q4 contributed ₹9,573 crore of fresh consolidated inflows.

Debt reduces sequentially, but remains above last year

NCC reported a decline in gross debt during the March quarter. Gross debt fell from ₹3,000 crore in December 2025 to ₹2,250 crore in March 2026, though it remained higher than ₹1,480 crore in March 2025.

In management commentary, gross debt at the beginning of the quarter was stated at ₹2,980 crore, ending Q4 FY26 at ₹2,251 crore, with net debt at ₹1,667 crore. The company also reported a debt-equity ratio of 0.30 at the end of Q4 FY26 versus 0.40 at the end of Q3 FY26 and 0.21 at the end of March 2025. Working capital excluding cash and margin money deposits was stated at ₹4,847 crore, equivalent to 28% of turnover, with working capital days at 97.

Jal Jeevan Mission receivables and collections

Receivables linked to Jal Jeevan Mission (JJM) continued to be a key operating variable. NCC received JJM payments of ₹1,000 crore in Q4 FY26 and a further ₹450 crore in April 2026, but outstanding JJM receivables were stated at ₹3,000 crore against an outstanding backlog of ₹7,000 crore.

Management also discussed JJM project scale and execution: for JJM projects including groundwater surplus water, the order book received was ₹26,000 crore, with execution up to ₹20,142 crore and balance of ₹6,181 crore.

Separately, NCC received about ₹100 crore from Vizag Urban in Q4 FY26 and expected the remaining ₹290 crore in FY27.

Brokerage view: JM Financial reiterates ‘Buy’

JM Financial Institutional Securities maintained a ‘Buy’ rating on NCC with a revised sum-of-the-parts (SOTP) based target price of ₹205. The target was based on 15x September 2027 core earnings per share (EPS).

The brokerage trimmed FY27 and FY28 EPS estimates by 2% and 1%, respectively, and expected core EPS to grow at a 46% CAGR over FY26-28. It also flagged that NCC refrained from providing FY27 guidance, citing an uncertain business environment.

The brokerage note highlighted adjusted PAT of ₹224 crore for Q4 FY26, down 11% year-on-year but above its estimate of ₹200 crore and consensus of ₹220 crore, helped by higher other income and a lower tax rate. It also stated that reported PAT of ₹200 crore included an impairment of a loan receivable from a subsidiary of ₹21.5 crore.

Dividend proposal and record date

For FY2025-26, NCC recommended a dividend of ₹2.20 per equity share of face value ₹2 each, equivalent to 110%. The dividend is subject to shareholder approval at the ensuing Annual General Meeting (AGM). The company fixed Friday, 14 August 2026, as the record date for determining eligible shareholders.

Key numbers at a glance

What investors will track next

For NCC, the near-term focus is likely to remain on execution pace and cash collections, particularly around large government-led programmes such as JJM. Investors will also watch whether the company’s elevated receivables and working capital cycle improve as payment flows normalise.

With a reported book-to-bill ratio of about 4x and an order book above ₹83,000 crore, the project pipeline remains sizeable. The next key checkpoints are shareholder approval for the dividend at the AGM and subsequent updates on collections, debt movement, and any guidance commentary as FY27 progresses.