State-owned NBCC (India) Ltd has signed Memorandums of Understanding (MoUs) with various Bihar government departments to undertake four redevelopment projects in Patna under Phase-I, with expected sale and lease proceeds of approximately ₹5,152 crore. According to the latest regulatory filing, the projects will be executed on a self-financing basis, without any budgetary assistance from the state government. The tentative project cost is estimated at around ₹2,000 crore, excluding Goods and Services Tax (GST). The MoUs were signed in the presence of Bihar Chief Minister Samrat Choudhary, NBCC Chairman and Managing Director K P Mahadevaswamy, other state government dignitaries and NBCC officials.
The four proposed projects include residential redevelopment of Bihar State Housing Board (BSHB) colonies at Sector 5 (TV Tower) and Sector 6 (Bahadurpur) in Patna, together providing 3,331 flats across Economically Weaker Section (EWS), Lower Income Group (LIG), Middle Income Group (MIG) and Higher Income Group (HIG) categories. The developments will feature shopping complexes, clubhouses, gyms, community facilities, office spaces and other supporting infrastructure. The third project involves developing a modern Information Technology (IT) Tech Park for the Department of Information Technology (DIT), Bihar, at Gardanibagh, Patna, which will be the state's first tech park. The fourth project involves developing hotels and commercial spaces at the Water Resources Department site on Bailey Road in Patna.
According to the latest filing, NBCC will charge project management consultancy (PMC) fees of 6% and a marketing fee of 1.25% from these projects. This fee structure provides the company with substantial revenue from the successful completion of these self-financed redevelopment projects. The expected sale and lease proceeds are based on the cabinet note of the Bihar government's Urban Development and Housing Department and the MoUs. The company has stated that project-wise details would be provided in due course, indicating a comprehensive approach to revenue generation from these multi-billion-rupee projects.
According to the company's Q1 FY27 results, NBCC's net profit rose 17.2% year-on-year to ₹155 crore from ₹132 crore in the corresponding quarter last year. However, revenue declined 5.6% to ₹2,260 crore from ₹2,392 crore, while EBITDA increased 39% to ₹155 crore from ₹111 crore. The company's EBITDA margin improved to 6.9% from 4.7% in the year-ago period, indicating enhanced operational efficiency.
According to latest market data, NBCC shares ended at ₹76.25, up by ₹6.44, or 9.23% on the BSE following the announcement of these redevelopment projects. This represents a significant market response to the company's expansion into new redevelopment markets beyond its traditional Delhi operations. The stock performance reflects investor confidence in NBCC's diversified project portfolio and revenue generation capabilities across multiple states.
