₹64,326 Cr Order Book: Will NCC stock be able to cross the ₹200 mark? Check the details

Synopsis: The stock has corrected nearly 42% in one year despite a strong ₹64,326 crore order book and 31% growth in inflows. A brokerage sees 31% upside to ₹201, citing execution recovery, ₹11,369 crore recent orders, and improving momentum in the second half.

India’s civil construction sector is now valued at around $1.2 trillion, ranking as the world’s third largest. Driven by robust government infrastructure spending, it contributes 8-9% to the nation’s GDP and employs over 71 million people in 2025. Growth is fueled by expressways, metro projects, and a rising urban population.

With a market capitalization of Rs 9,420.84 crore, on Wednesday, the shares of NCC Ltd closed at Rs 150.05 per share, increased around 0.07 percent as compared to the previous closing price. The shares have plummeted up to 38.22 percent over the last one year and  34.44 percent over the last six months.

Brokerage Recommendation

Geojit BNP Paribas has turned positive on the infrastructure stock, assigning a Buy rating with a target price of Rs 201. The brokerage sees about 34% upside from the current level of  Rs 150.05, reflecting confidence in the company’s growth prospects and improving fundamentals over the medium term.

As per brokerage, NCC reported a strong H1FY26 with its standalone order book rising 23% YoY to  Rs 64,326 crore, around 3.5x TTM revenue. Order inflows stood at  Rs 6,223 crore, up 31% YoY, and management reiterated FY26 guidance of  Rs 22,000– Rs 25,000 crore, ensuring healthy medium-term visibility.

The brokerage notes margin pressure in Q2, with EBITDA margin falling 158 bps YoY to 7.4% due to lower execution and higher costs, despite stable gross margins. However, strong orders of  Rs 11,369 crore in Q3 and approvals for key projects are expected to drive ~16% YoY execution growth and margin recovery in H2FY26.

Financials

NCC Ltd reported a weak Q2FY26 performance, with revenue falling 13% to Rs 4,543 crore from Rs 5,196 crore in Q2FY25. Net profit also declined 5% to Rs 167 crore from Rs 175 crore. The drop reflects slower project execution and cost pressures, though the company maintains a strong order book supporting medium-term growth prospects.

In Q2FY26, consolidated gross debt rose 69% year-on-year to  Rs 2,923 crore, while net debt surged 80% to  Rs 2,643 crore, reflecting higher working capital needs amid slower collections and subdued billing. Despite temporary leverage pressure, management aims to improve cash flows, accelerate project execution, and optimize debt levels as business activity normalizes in the second half.

NCC Limited is one of India’s leading infrastructure and construction companies, with a strong presence across buildings, roads, water, railways, and electrical projects. Known for quality execution and engineering excellence, NCC has played a key role in nation-building through large-scale public infrastructure and urban development projects across India.

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