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NCC on standalone basis, reported revenue from operations at ₹ 4378 crore, down 7.1% YoY

ICICIdirect Research 08 Aug 2025 DISCLAIMER

Weak Performance: NCC on standalone basis, reported revenue from operations at ₹ 4378 crore, down 7.1% YoY with weakness owing to slower ramp up on new orders won from March, 2025 onwards. EBITDA margins were at 9% YoY, down 30 bps YoY.
Guidance maintained; Order book Healthy: The standalone order book stood at ₹ 61779 crore, 3.3x book to bill. It expects a healthy order inflow in FY26 at ₹22000-25000 crore, with L1 positions worth ₹5000-6000 crore. The management maintained the guidance for revenue growth of 10% for FY26 given the healthy pipeline and robust order backlog.  Building and transportation (together forming ~60% of the order book) shall continue to drive growth. It expects execution to pick up sharply in H2FY25. EBITDA margin guidance is maintained at above 9-9.25% for FY26.
NCC is a key beneficiary of the tailwinds in the buildings, Transportation, water, mining and electrical segments. Given the strong order book visibility, execution is likely to improve ahead in H2. We maintain BUY on the company with a TP of ₹ 275, valuing at 15x FY15 P/E

 

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