Don’t Trade in the Dark—Get Your Pre-Market Report Every Day.Join Now
Search stocks
NBCC (India) Ltd

| Q2 & H1 FY26 Earnings Conference Call

BULLISH SENTIMENT

Report Source

⬤14th Nov 25

Summary : NBCC reported strong Q2/H1 FY26 results with significant order book growth and positive future outlook, despite some project execution delays.

Management Perspective positive : "really, I can say it is a fantastic result of NBCC.""We are expecting INR800 crores to INR900 crores during this year. That will be our profit.""This is minimum 20% growth. However, when we start out another Redevelopment project like MAHAPREIT & J&K, we will achieve more.""We are pride to say that we are Navratna construction company.""We expect this trend to further strengthen overall performance in the second half (H2)."

Concall Report Analysis & Insights

Business Overview

  1. Q2 standalone total income was INR 2,225 crores, consolidated INR 3,017 crores, up 20% year-on-year.
  2. Standalone PAT grew 40% year-on-year to INR 173 crores; consolidated PAT grew 25% to INR 157 crores.
  3. Standalone order book stands at INR 1,12,000 crores, consolidated at INR 1,28,000 crores.
  4. Secured INR 6,800 crores in Q2, totaling INR 10,000 crores in H1 FY26, including RIICO and Naveen Nagpur projects.
  5. Amrapali Project Phase 1 is 93% complete, with 23 out of 24 projects and 30,000 units finished.

Future Growth Prospects

  1. Expect to award INR 10,000-12,000 crores of new works in the next half of FY26.
  2. Targeting 20% revenue growth for FY26-27, with PAT margins of 7-8% and EBITDA margins of 6-6.5%.
  3. Significant pipeline includes redevelopment of other Delhi government colonies and various PSU lands.
  4. Strategic MOUs with Australian and UAE real estate developers to expand global footprint.
  5. Ghitorni land project expected to start construction by year-end or Q1 next year, generating INR 7,000-8,000 crores revenue.

Management Insights

  1. We are confident in achieving INR 14,000-15,000 crores revenue for the full year FY26.
  2. The 20% growth target is a minimum; we expect to exceed it with new redevelopment projects.
  3. We have shifted strategy for some real estate projects from selling to leasing for recurring revenue.
  4. The Amrapali project completion and successful handover is a point of pride for the company.
  5. Q4 is traditionally the strongest quarter for the civil industry, expecting strong performance.

Signs of Skepticism

  1. Slow execution of the large order book, with only INR 34,000 crores currently running.
  2. Significant portion of the order book (INR 25,000 crores from MAHAPREIT) relies on client-arranged funding.
  3. Delays in state government project approvals (J&K) for redevelopment models.
  4. Shift in real estate strategy from selling to leasing for some projects, potentially impacting immediate sales revenue.

Risk Factors

  1. Project approvals for redevelopment models (J&K, MAHAPREIT) are causing delays in execution.
  2. Reliance on client funding for self-sustainable redevelopment projects impacts project commencement.
  3. EBITDA margin slightly reduced in Q2 due to lower real estate contribution and Amrapali marketing fees.
  4. Real estate sales were lower in Q2, impacting marketing fee income for the quarter.

Good To Know

  1. NBCC acts as a Project Management Consultant (PMC) for redevelopment projects, not taking direct loans.
  2. HUDCO has sanctioned INR 11,000 crores for Naveen Nagpur and INR 3,000 crores for MAHAPREIT.
  3. Real estate revenue for H1 FY26 was INR 26 crores, with a full-year target of INR 64-65 crores.
  4. Seed money in books is INR 481 crores, primarily for Amrapali (INR 465 crores) and DTC (INR 16.5 crores).
  5. Super-tech project status awaits Supreme Court decision, with a hearing scheduled for December 8.

Key Drivers

  1. Large order book ensures future revenue.
  2. New project awards will boost topline.
  3. Amrapali project completion drives sales.
  4. Ghitorni land resolution unlocks value.

Key Analyst Discussions

Financial Highlights

  1. Management expects INR 800-900 crores profit for the current financial year.
  2. Running projects total INR 34,000 crores, expected to be completed within 2-3 years.
  3. EBITDA margin for H1 increased year-on-year, but Q2 saw a slight reduction.
  4. Targeting 20% revenue growth and 7-8% PAT margin for FY27.
  5. FY28 revenue target is INR 25,000 crores with PAT of INR 2,000 crores.

Product Composition

  1. Order book split: 47% PMC and 53% redevelopment on a consolidated level.
  2. Real estate strategy shifting towards leasing for projects like Bhubaneswar and Ghitorni.
  3. Commercial projects, like one in Delhi worth INR 9,000 crores, will be auctioned soon.

Strategic Considerations

  1. Discussions ongoing for redevelopment of other Delhi government colonies and various PSU lands.
  2. New projects in pipeline include HPCL (Bangalore), HMT (Bangalore), MTNL/BSNL (Delhi).
  3. Considering a rental model for Ghitorni commercial spaces instead of outright selling.
  4. No plans to set up an NBFC as funding is available from HUDCO.
NBCC (India) Ltd (NBCC) Concall Report Analysis & Insights | Dhanarthi