NCC (500294) Q2 25/26 earnings summary

Executive summary

• Order book as of September 2025 stands at ₹71,957 crore, up 37% year-over-year, with strong inflows across buildings, water, and irrigation divisions.

• Over 47 years of operations with a pan-India presence and a diversified order book across multiple infrastructure sectors.

• Revenue and profitability declined year-over-year due to unprecedented rains, elongated payment cycles, and phased project starts impacting execution.

• Management has withdrawn FY 2026 guidance, citing external uncertainties, and will revisit by March 2026.

• Board approved unaudited standalone and consolidated results for the quarter and half year ended 30th September 2025, with statutory auditor review and unmodified reports issued.

Financial highlights

• Q2 FY26 consolidated revenue was ₹4,585 crore, down 12% year-over-year; H1 consolidated revenue was ₹9,793 crore, down 9%.

• Q2 FY26 consolidated PAT was ₹154.70 crore (3.38% of revenue); H1 PAT was ₹346.84 crore.

• Standalone Q2 EBITDA margin: 7.45%; consolidated EBITDA margin: 8.6%.

• Net debt increased to ₹1,890 crore (standalone) and ₹2,643 crore (consolidated); debt-equity ratio at 0.28.

• Consolidated EPS for Q2 was ₹2.46 (vs ₹2.60 YoY); H1 EPS ₹5.52 (vs ₹5.94 YoY).

Outlook and guidance

• Guidance for FY 2026 withdrawn due to challenging environment and payment delays; update expected by March 2026.

• H2 FY26 expected to see normalization of activity and improved cash flows as large sites ramp up.

• Sector outlook remains positive, supported by government infrastructure spending and active tendering.

• Management remains positive on execution as monsoon recedes and expects improvement in coming quarters.

• Strong order inflow and robust order book position the company for continued growth.