PSU stock with 89% increase in order book to ₹71,568 crore in FY25 to add to your watchlist

Synopsis:
The company reported strong order book growth, diversified project mix, and solid execution across key infrastructure segments. With robust order inflow targets, increased capex, and healthy revenue guidance, it remains well-positioned for sustained momentum despite near-term caution on payments and visibility.

India’s civil construction sector is on a major growth path, on track to become the third-largest global construction market. The industry is projected to reach a value of $1.4 trillion by 2025. For the fiscal year 2025-26, revenue growth is forecast to be between 6% and 12%, spurred by significant government investment, including a budget allocation of INR 11.21 lakh crore for infrastructure.

With a market capitalization of Rs 14,111 crore, the shares of NCC Ltd were trading at Rs 224.90 per share, increasing around 1 percent as compared to the previous closing price of Rs 222.20 apiece.

Order Book Growth

NCC has demonstrated consistent growth over the years. Its order book surged 89 percent from ₹37,911 crore in FY21 to ₹71,568 crore in FY25, indicating strong project inflows.

However, slightly moderating to ₹70,087 crore in Q1 FY26. Turnover also climbed steadily from ₹8,065 crore in FY21 to ₹22,355 crore in FY25. Q1 FY26 turnover at ₹5,208 crore suggests healthy execution momentum, supporting sustained revenue visibility and robust business performance.

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Operational Highlights

In Q1 FY26, NCC’s total order book stood at ₹70,087 crore, with buildings contributing the highest share at 34%, followed by transportation at 26% and electrical (T&D) at 22%. Water & railways (6%), mining (7%), and irrigation (5%)  made up the remainder, showcasing a well-diversified project portfolio across critical infrastructure sectors.

During the quarter, NCC secured ₹3,658 crore in new orders, dominated by the buildings segment at 79%, while transportation accounted for 21%, reflecting strong demand in real estate and infrastructure development. On the execution front, NCC executed ₹5,139 crore worth of projects, led by buildings (34%), mining (16%), and electrical (18%), indicating active progress across multiple verticals.

For FY26, NCC targets order inflows of ₹22,000–25,000 crore and expects a 10% YoY revenue growth. EBITDA margin is guided at 9–9.25%. Capex is significantly raised to ₹750 crore, primarily for a tunneling machine for the Mumbai project. Additionally, the company announced a 110% dividend (₹2.20/share), totaling an outflow of ₹139 crore.

As per the recent concall, NCC’s tender pipeline stands strong at ₹2.55 lakh crore, with FY26 order inflow guidance at ₹22,000–25,000 crore, including ₹7,000–8,000 crore of L1 orders. However, management remains cautious, citing dependency on timely payments and capital discipline. For FY27, they see potential for higher growth, but await clearer visibility before providing concrete guidance.

NCC Limited is engaged in construction/project activities in the infrastructure sector. The Company is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing projects, roads, bridges and flyovers, water supply and environment projects, mining, power transmission lines, irrigation and hydrothermal power projects. 

Written by Abhishek Singh

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