NCC - NCC Limited Share Price

NCC Limited's management provided a cautiously optimistic outlook during the Q3 FY '26 earnings call. The consolidated order book stood at INR 79,571 crores as of December 31, 2025, supported by fresh order inflows of INR 12,430 crores in Q3 FY '26. Management emphasized the order book's diversification across segments"”Buildings (31%), Transportation (22%), Electrical T&D (18%), Mining (13%), Water & Railway (10%), and Irrigation and others (7%).

For Q3 FY '26, the company reported consolidated revenue of INR 4,900 crores, down from INR 5,383 crores in the corresponding quarter of the previous year. The EBITDA margin remained resilient at approximately 9%, reflecting operational discipline and cost rationalization. On a 9-month basis, cumulative revenue was INR 14,693 crores, with cumulative order inflows reaching INR 22,311 crores.

Looking ahead, management did not provide explicit guidance for FY '26 but stated that they expect a robust Q4 as projects transition from mobilization to execution. They noted a significant increase in debt from INR 2,115 crores to INR 2,980 crores due to mobilization and capex needs, despite receiving only a small amount from the Jal Jeevan Mission (JJM) projects.

Importantly, management highlighted the importance of timely payments from clients, particularly for JJM, which is pending around INR 1,200 crores receivables. They expect improvements in payment flows, resulting in better execution momentum. There is also mention of investments and operational readiness in upcoming projects, indicating a focus on regaining execution strength in the coming quarters.

Q: My first question is on the execution. Can you help us understand the movement of INR28,000 crores of orders won in March and INR7,000 crores of JJM into execution?

A: We are seeing some progress. We have received approximately INR560 crores from JJM recently, and we are optimistic about future payments based on the significant budget allocation for FY '27. Once payments start flowing in, we can evaluate our next steps. Execution will depend largely on the payment release pattern from our clients.

Q: Is the entire order book of INR72,000 crores now under execution? Are we expecting substantial ramp-up in Q4?

A: Not all projects have commenced execution yet. While large projects are moving along, formal guidance for FY '26 has been withdrawn. That said, we expect good progress in Q4 as many projects reach operational phases properly.

Q: Why has the debt increased by INR1,000 crores despite receiving from JJM? Where did this increase come from?

A: The increase in debt is due to limited cash inflow from JJM in Q3; most funds arrived in January. Additionally, we have incurred costs for capex and new loans associated with our smart meter projects, contributing to the elevated debt levels.

Q: Can you provide an update on the status of the Vizag receivable? Is it still on track for expected recovery?

A: Yes, we anticipate receiving the expected amount from Vizag in the current quarter. There was an agreement in place, and we remain hopeful about this recovery process.

Q: What would be the outstanding order backlog in JJM? Also, what are the total receivables across all states?

A: Our outstanding JJM backlog stands at INR7,000 crores, while total receivables across all JJM projects are approximately INR3,700 crores after accounting for recent payments from UP.

Q: Can you discuss the capex plans for FY '27? What's the expected number?

A: For FY '27, the capex requirement should be around INR400 crores, reflecting ongoing needs in our mining division and the phased manner in which equipment will be acquired.

Q: What impact will the current high commodity prices have on your margins, given a large portion of contracts?

A: Roughly 79% of our contracts include escalation clauses, which should protect us against commodity price fluctuations to a large extent, ensuring we can maintain our margins sufficiently.

Q: Can you clarify how long you are expecting to have outstanding issues like those with JJM? Will this continue into FY '27?

A: The situation with JJM payments has caused some delays, but we expect improvements moving forward. However, ongoing client payment behaviors are critical to operations and we will evaluate the environment going into FY '27.

Q: You mentioned that the merger won't impact stand-alone debt levels. Can you clarify this?

A: Correct; the merger with NCCIHL did not affect our stand-alone debt levels significantly. The adjustments were primarily related to the fair value of investments, with the balance sheet reflecting a reduction in overall numbers but no debts altered as a result.