NCC (500294) Q2 25/26 earnings summary

Executive summary

• Order book as of September 2025 stands at ₹71,957 crore, with ₹6,223 crore new orders booked in Q2, mainly from buildings, water, and irrigation divisions.

• Over 47 years of operations with a pan-India presence and a diversified order book across buildings, transportation, water, electrical, mining, railways, and irrigation sectors.

• Q2 FY26 consolidated turnover was ₹4,585.06 crore, down from ₹5,224 crore year-over-year; H1 turnover at ₹9,793 crore, down from ₹10,782 crore.

• Management withdrew FY26 guidance due to challenging business environment and elongated payment cycles, with an update expected by March 2026.

• H1 FY26 revenue was impacted by phased project starts, permission issues, and a prolonged monsoon, but H2 is expected to see a ramp-up in execution.

Financial highlights

• Standalone Q2 turnover: ₹3,773.96 crore (down 16% YoY); H1 turnover: ₹8,203.60 crore (down 11% YoY).

• Consolidated Q2 EBITDA margin: 8.66%; PBT: 4.51%; PAT: 3.37%.

• Standalone Q2 EBITDA margin: 7.45% (vs 9.03% YoY); PBT: 3.1%; PAT: 2.68%.

• EPS for Q2 FY26: ₹1.61 (vs ₹2.55 YoY); consolidated EPS: ₹2.46 (vs ₹2.60 YoY).

• Net debt increased to ₹2,643 crore (consolidated) and ₹1,890 crore (standalone) as of Q2 FY26.

Outlook and guidance

• Guidance for FY26 withdrawn due to unprecedented rains and elongated payment cycles impacting execution and revenue recognition.

• Management expects to provide updated guidance by March 2026, depending on improvement in external conditions.

• 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.

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