NCC Limited reported a 12.2% year-on-year revenue growth for the June quarter, supported by a strong order book of over ₹81,000 crore. Management has issued positive guidance for FY27, targeting revenue expansion. Following the results, Prabhudas Lilladher has maintained a 'Buy' rating on the stock with a target price of ₹195.
NCC Limited has posted a strong start to the new fiscal year, reporting robust growth for the first quarter ended June 30, 2026. The company’s consolidated revenue climbed 12.2% compared to the same period last year, reaching approximately ₹5,812 crore. Net profit also followed an upward trend, rising to ₹216.4 crore, reflecting improved operational efficiency.
Operational performance remained healthy, with consolidated EBITDA margins expanding to 9.4%. This performance has been supported by a significant order backlog, which stood at ₹81,214 crore as of June 30, 2026. This order book provides clear visibility for future revenue, covering roughly four times the company's annual revenue. Additionally, the company has announced a dividend of ₹2.20 per share for shareholders, with the record date set for August 14, 2026.
Following the announcement of these results, management has provided guidance for the remainder of FY27. The company is targeting revenue growth in the range of 8% to 10% and expects EBITDA margins to stabilize between 8.5% and 9.0%. Brokerage firm Prabhudas Lilladher has responded to the update by reiterating its 'Buy' rating on the stock with a target price of ₹195, citing the company's improved execution and order book strength as primary growth drivers.
While the financial results show clear growth, the company operates in a sector that is sensitive to public infrastructure spending. A key monitorable for investors remains the company's ability to manage its working capital efficiently. NCC continues to navigate challenges related to payment timelines from government-led projects, such as the Jal Jeevan Mission. While collections are normalizing, any delay in payments from government clients could impact cash flow and lead to increased reliance on borrowing.
Furthermore, while debt levels are currently being managed, rising finance costs remain a factor to track, particularly as the company invests in new ventures like smart meter projects. The company’s ability to execute its massive order book on schedule, without significant cost overruns or labor-related delays, will be crucial for maintaining its current margins. Investors may monitor the pace of new order inflows and the realization of collections from existing projects in the coming quarters to gauge the company's financial health.