🏗️ NCC Ltd Q2 FY2025-26 Results: Revenue Softens, Profit Holds, Order Book Stays Strong — Full Breakdown, Table & Outlook

NCC Limited, one of India’s most established EPC/infra companies, reported a steady but mixed Q2 FY2025-26. Revenue moderated year-on-year given a tough base and project phasing, yet profit after tax (consolidated, attributable to shareholders) stayed healthy. Margins were resilient, and the company continues to sit on a large, well-diversified order book, supported by fresh wins in buildings, transportation and mining.

Below, we unpack the official filing, put Q2 next to Q1 FY26 and Q2 FY25, and translate management’s cues into what it means for execution, cash flows and margins over H2 FY26.

🔢 Headline numbers (Consolidated)

• Revenue from operations (Q2 FY26): ₹4,543.01 crore (vs ₹5,195.98 crore in Q2 FY25; ₹5,178.99 crore in Q1 FY26).

• Total income (Q2 FY26): ₹4,588.03 crore (includes other income of ₹45.02 crore).

• EBITDA (Q2 FY26): ₹393.31 crore; EPS ₹2.46 (basic & diluted for the quarter).

• PAT (Consolidated, attributable to shareholders): ₹154.75 crore (Q2 FY26) vs ₹162.96 crore in Q2 FY25 and ₹191.83 crore in Q1 FY26.

• Order inflow (Q2 FY26): ~₹6,223 crore; Order book (30 Sept 2025): ~₹71,957 crore. scanx.trade

The above are official consolidated numbers from NCC’s Q2 filing (and attached press release). Order-flow and order-book datapoints are drawn from earnings coverage aligned with the filing day. scanx.trade

📊 Quick Comparison — Q2 FY26 vs Q1 FY26 vs Q2 FY25 (Consolidated)

Note: Where the quarterly EBITDA is explicitly given in the press release, we use it as-is; for margins we reference the same disclosure.

🧭 What management signaled (from the attached note)

NCC’s press release alongside the results highlights:

• Q2 turnover including other income at ₹4,585.06 crore; EBITDA ₹393.31 crore; PAT attributable ₹154.70 crore; EPS ₹2.46. The comparable quarter last year had ₹5,224.36 crore turnover, ₹442.95 crore EBITDA and ₹162.95 crore PAT attributable; EPS ₹2.60.

• For the first half (H1 FY26): total income ₹9,792.99 crore, EBITDA ₹849.43 crore, and PAT attributable ₹346.84 crore; EPS ₹5.52.

The tone is execution-first and profitability-disciplined: choosing orders more carefully, scaling selectively where working-capital turns and risk-adjusted margins make sense.

🔍 Deep Dive: What moved the quarter

1) Revenue softness on phasing; no structural demand issue

The year-ago quarter (Q2 FY25) was a high base with faster site progressions. Q2 FY26 saw revenue from operations at ₹4,543 crore, down YoY and sequentially. In EPC businesses this often reflects client clearances, monsoon-time disruptions, milestone billing schedules and material dispatch timing—not necessarily a demand cliff. The order book near ₹72,000 crore underscores medium-term visibility. scanx.trade

2) Margins defend well despite lower scale

NCC posted Q2 EBITDA ₹393.3 crore; that’s a margin in the mid-8% range, broadly flat YoY, which is credible given raw-material volatility, wage inflation and site overheads. Holding margins near the prior-year run-rate while volumes dip is an execution positive.

3) Profitability steady; PAT to shareholders at ₹154.8 crore

PBT ₹208.6 crore and PAT (shareholders) ₹154.8 crore reflect resilient underlying profitability. EPS landed at ₹2.46 for the quarter (vs ₹2.60 a year ago). On a half-year basis, EPS of ₹5.52 indicates NCC can still drive a respectable earnings print if H2 sees a typical infra-cycle ramp-up.

4) Order inflow momentum continues

Multiple disclosures through late October/early November show fresh orders aggregating ~₹6,223 crore during the quarter, spanning Buildings and Transportation (including a notable coal/mining award and water infra earlier in H1). This keeps the order book at ~₹71,957 crore (as of 30 Sept 2025), offering execution runway for the next 2–3 years, subject to mobilization and client payments. scanx.trade+2Angel One+2

🧩 Segment view & mix (Consolidated)

NCC’s segment sheet shows Construction as the core engine, with Real Estate contributing modestly:

• Gross segment revenue (Q2 FY26): Construction ₹4,397.61 crore; Real estate ₹145.40 crore; Others negligible. Revenue from operations: ₹4,543.01 crore.

• Segment result (Q2 FY26): Construction ₹220.02 crore; Real estate ₹20.56 crore; Others slightly negative; Total segment result ₹241.13 crore, before unallocable finance cost/other income and associates.

Takeaway: NCC remains predominantly a construction EPC story; real estate and “others” add a small cushion but don’t drive the bus. For margins and cash, the quality of construction orders (risk, escalation, terms) is the swing factor.

🔄 Q2 vs Q1 FY26: what changed sequentially?

• Revenue: ₹4,543 cr (Q2) vs ₹5,179 cr (Q1) — expected seasonal moderation and phasing (monsoon impact is typical).

• PAT (shareholders): ₹154.8 cr (Q2) vs ₹191.8 cr (Q1) — profit softened on lower scale; margins held up.

• Working capital posture (inferred): NCC historically tightens collections and execution in H2; watch receivables/advances in the H1 cash-flow statement for early indications. (Q2 package includes consolidated cash-flow; cash and cash equivalents stood ~₹212 crore at Sep-end.)

🧭 Management guidance: what to watch for H2 FY26

While NCC refrains from hard numeric guidance, the filing & press note imply the following directional anchors:

1. Execution ramp in H2: With a strong order book and improving site conditions post-monsoon/festive, Q3–Q4 typically see higher billing. Expect some QoQ recovery in revenue if mobilization stays smooth.

2. Margin discipline over growth: Management continues to prioritize risk-adjusted margins and cash conversion over low-margin growth. Maintaining ~8–9% EBITDA on a rising topline would translate to better H2 earnings.

3. Order mix and geography: Fresh wins are skewed to Buildings & Transportation, with selective mining/water projects. Mix is key—escalation clauses, payment terms and client quality will dictate working-capital intensity. Angel One+1

4. Balance sheet prudence: Consolidated assets/liabilities indicate a measured leverage stance; focus remains on receivable turns and controlled capex (H1 capex modest vs scale).

⚠️ Risks & sensitivities

• Project-level delays: Land, clearances, or client funding can push billing; infra EPC is inherently milestone-driven.

• Input costs & wage inflation: Prolonged spikes can compress margins if escalation clauses lag.

• Working capital stretch: Receivable cycles and retention money keep cash conversion in focus.

• Litigation/claims: Standard for the sector; outcomes affect one-offs and cash.

✅ Our read: steady core, large pipeline, eyes on execution cadence

Q2 FY26 for NCC is about resilience: revenues came off a high base, but EBITDA held, and PAT stayed respectable. The order book (~₹72k crore) plus fresh inflows (~₹6.2k crore) point to ample visibility. If H2 brings the usual on-ground acceleration and payment discipline holds, NCC can exit FY26 with stable margins, improved earnings vs H1, and a platform for FY27.

For investors and industry followers, the three KPIs to track into Q3/Q4:

1. Quarterly revenue run-rate (evidence of H2 bounce).

2. EBITDA margin trend vs the ~8–9% band.

3. Order conversion & cash (receivable days; operating cash flow).