NCC shares fell 6.2% on BSE following the release of disappointing Q4FY26 results, with the stock hitting an intraday low of ₹150 per share before recovering slightly to ₹152.35 by 11:16 AM. The selling pressure came after the company reported an 18.8% decline in net profit to ₹206.02 crore compared to ₹253.82 crore in the same quarter last year. According to Business Standard, the stock's performance significantly underperformed the BSE Sensex, which was down 0.74% at 74,678.46 points during the same period.
As reported by Business Standard, NCC's revenue from operations stood at ₹6,232.71 crore in Q4FY26, representing a modest 1.6% increase from ₹6,130.88 crore in the corresponding quarter of the previous year. The company's adjusted profit after tax (PAT) came in at ₹224 crore, down 11% year-on-year but exceeding JM Financial's estimate of ₹200 crore and consensus expectations of ₹220 crore. The reported PAT of ₹200 crore included an impairment of loan receivable from a subsidiary of ₹21.5 crore. Despite the challenging quarter, the company demonstrated resilience with higher other income and a lower tax rate supporting the adjusted PAT performance.
According to Business Standard, NCC secured robust standalone order inflows of ₹27,000 crore in FY26, bringing its standalone order backlog to ₹72,300 crore - approximately 4.1x trailing twelve-month revenues. On a consolidated basis, order inflows stood at ₹31,900 crore. The company's order book provides strong revenue visibility for future quarters, though this positive development was overshadowed by operational challenges during the quarter.
As reported by Business Standard, outstanding Jal Jeevan Mission (JJM) receivables remain elevated at ₹3,000 crore against an outstanding backlog of ₹7,000 crore. The company received JJM payments of ₹1,000 crore in Q4FY26 and an additional ₹450 crore in April 2026, but the remaining receivables continue to pose a concern for cash flow management. Additionally, NCC received approximately ₹100 crore from Vizag Urban in Q4FY26 and expects the remaining ₹290 crore in FY27. The receivables situation highlights ongoing working capital challenges despite the company's strong order book position.
According to Business Standard, NCC has refrained from providing FY2027 guidance on important financial parameters such as revenue growth, order inflow, and EBITDA and net profit margins. This cautious approach reflects the company's uncertain business environment and ongoing operational challenges. JM Financial maintains a 'Buy' rating on NCC with a revised sum-of-the-parts (SOTP) based target price of ₹205, based on 15x September 2027 core earnings per share. The brokerage expects core EPS to grow at a robust 46% CAGR over FY26-28, though it has trimmed FY27 and FY28 EPS estimates by 2% and 1% respectively.
