NCC Shares In Focus On Winning Rs 2,090-Crore Reservoir-Construction Order

NCC Ltd. on Monday won an award worth Rs 2,090 crore for the construction of a reservoir. The reservoir will be constructed in Jamui, Bihar.

The project also includes construction of the Barnar reservoir, dam structures, irrigation channels and other associated works, according to the exchange filing on Monday. Construction of the Barner Reservoir Scheme is expected to be completed in 30 months. The order also includes a Defect Liability Period of 60 months. The project was awarded by the Water Resources Department of Bihar.

The company has maintained healthy order inflows in the first quarter and is confident in making a slow recovery on the back of a strong order book. NCC secured new orders worth Rs 3,658 crore in the first quarter, which is around 17% of the fresh order flow expected in the full financial year, the company said in the investor's presentation. The full-year expected order inflow is Rs 22,000–25,000 crore.

The healthy order inflow is indicative of the client's confidence, NCC said in the investor presentation last month. "Approaching the rest of FY26 with a healthy bid pipeline, continued project selectivity, and close alignment to market opportunities—ensuring preparedness for a gradual recovery."

NCC's profit in the first quarter of this financial year fell 8% to Rs 192.14 crore in quarter ended June. This is in comparison to profit of Rs 209.92 crore in the previous quarter.

Revenue fell by 6.3% year-on-year for the three months ended June, reaching Rs 5,178.99 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 5% year-on-year to Rs 456.12 crore. The Ebitda margin expanded to 8.8%.

The business update was shared aftermarket hours. The stock settled 1.62% lower at Rs 212.10 apiece on the NSE, compared to a 0.14% decline in the benchmark Nifty 50.

NCC shares have fallen 33.03% in the last 12 months and 22.56% year-to-date.

Out of 15 analysts tracking the company, 11 maintain a 'buy' rating, two recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 274 implies an upside of 29.2%.