NCC Q2 Results: Rekha-Jhunjhunwala Portfolio Stock Settles 6% Post Weak Q2 Results

NCC Q2 Results: NCC announced its July-Sept. quarter results for fiscal 2025-26 (Q2FY26) on Thursday, Nov. 6, reporting a drop of 5% in net profit to Rs 155 crore, compared to Rs 163 crore in the corresponding period last year. The Rekha Jhunjhunwala-backed portfolio stock settled 6% lower after the Q2 earnings results. It has been eyed as a multibagger stock.

The topline of the Hyderabad-based diversified construction company dropped 12.6% to Rs 4,543 crore, compared to Rs 5,196 crore in the year-ago period, hurt by slower project execution amid monsoon rains. NCC's earnings before interest, tax, depreciation and amortisation declined by 11.5% to Rs 393 crore, compared to Rs 443 crore a year-ago.

• Net profit fell 5.1% to Rs 155 crore Vs Rs 163 crore

• Revenue dropped 12.6% to Rs 4,543 crore Vs Rs 5,196 crore

• EBITDA down 11.2% to Rs 393 crore Vs Rs 443 crore

• Margin at 8.7% Vs 8.5%.

As of Sept. 2025, Rekha Jhunjhunwala held a 10.63% stake in NCC with nearly 66,733,266 shares, down from 12.5% in the preceding June quarter of FY26. The ace investor is the wife of late market veteran Rakesh Jhunjhunwala, the Big Bull of the Indian stock market.

NCC operates in multiple segments, including roads, buildings, irrigation, water, electrical, metals, mining, and railways. Apart from projects in India, NCC has an international presence through its subsidiaries in Muscat and Dubai.

The weak set of Q2 numbers dragged the stock as it settled 6% lower on the BSE. NCC shares settled 5.04% lower at Rs 195.40 apiece on the BSE against a 0.18% decline in the Sensex index. NCC commands a market cap of Rs 12,268.12 crore.

However, the Jhunjhunwala-backed multibagger stock has delivered stellar 171% returns in three years and 462.3% returns in the last five years. The relative strength index was 52.17. According to D-Street brokerage Dolat Capital, NCC Ltd reported a 'bad quarter' in Q2FY26.

According to Reuters, the July to Sept .quarter is a seasonally weak period for construction firms such as NCC, as it overlaps with India's annual monsoon season when progress on most construction projects typically slows. NCC's larger peers such as L&T reported a strong quarter.

However, analysts expect project execution to pick up in the second half of the current fiscal year, especially in the fourth quarter, which is more conducive for construction activity, as per the news agency.

NCC's medium-term order inflow prospects remain strong due to a state-level development push for more infrastructure projects, including the development of Amaravati city of Andhra Pradesh, as per analysts at Antique Stock Broking.