NBCC Secures ₹340 Crore University Project & Q2 Profit Soars 26%!

Industrial Goods/Services

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Updated on 13 Nov 2025, 12:16 pm

State-run Navratna PSU NBCC (India) Ltd has been awarded a significant contract valued at ₹340.17 crore for the construction of Phase I works of the Central University of Kashmir at Tulmulla, Ganderbal. This major project win highlights NBCC's established role in executing large-scale institutional infrastructure projects. This comes shortly after the company secured a ₹350.31 crore work order from the Heavy Vehicles Factory (HVF) for project management consultancy services.

In addition to these order wins, NBCC reported strong financial results for the September 2025 quarter (Q2 FY26). Consolidated net profit saw a robust 26% year-on-year jump, reaching ₹153.5 crore compared to ₹122 crore in the prior year. Revenue from operations grew by 19% year-on-year to ₹2,910.2 crore from ₹2,446 crore, indicating steady progress across its project pipeline.

However, EBITDA remained largely flat at ₹100.8 crore, and operating margins slightly softened to 3.5% from 4% due to prevailing cost pressures. The company's board of directors also approved a second interim dividend of ₹0.21 per share (21%) for FY26, with November 19, 2025, designated as the record date.

Impact: This news is largely positive for NBCC (India) Ltd. The substantial contract wins enhance future revenue visibility and demonstrate strong project execution capabilities. The robust profit growth in Q2 FY26, coupled with a dividend announcement, is likely to be viewed favorably by investors. The slight softening in margins might be a point of monitoring but doesn't overshadow the overall positive sentiment from new orders and profit growth. Rating: 6/10

Difficult Terms: • Navratna PSU: A status conferred by the Indian government upon well-performing Public Sector Undertakings (PSUs) which grants them enhanced autonomy and financial powers. • Consolidated Net Profit: The total profit of a company after deducting all expenses, including taxes and interest, and including the profits of its subsidiary companies. • Revenue from Operations: The total income generated from a company's core business activities. • EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a metric used to assess a company's operating performance. • Operating Margins: The percentage of revenue that remains after deducting the cost of goods sold and operating expenses, reflecting profitability from core business. • Interim Dividend: A dividend paid to shareholders during the fiscal year, before the final annual dividend is declared.