NCC shares decline as unclear outlook for full year clouds Q3 results

Shares of NCC Ltd. declined on Friday, February 6, after the company's management declined to provide even qualitative guidance for the second half of FY26 due to execution headwinds. An update is expected only by March 2026.

The company had withdrawn its revenue and margin guidance for the entire financial year 2026 at the end of the September quarter.

NCC's order inflow target has been retained at ₹22,000 to ₹25,000 crore. As of early January, NCC is well on-track, as it had secured approximately ₹17,420 crore in new orders by the end of October 2025, with further wins reported in November and December.

While the management withdrew specific guidance, it indicated that they are focusing on maintaining operational efficiency to keep margins above 7%.

For the December quarter, NCC's net profit declined by 36.6% to ₹122.5 crore in the December quarter from ₹193.2 crore in the previous year.

Its revenue was down 9% to ₹4,868.3 crore from ₹5,344.5 crore in the third quarter of the previous fiscal.

NCC's earnings before interest, tax, depreciation and amortisation (EBITDA) declined by a percent to ₹436.3 crore in the third quarter. Its margins expanded to 9% from 8.3% in the year-ago period.

The company's orderbook was at ₹79,571 crore, its third quarter order inflow was at 12,430 crore. Its order inflows this year, so far, are at ₹22,311 crore. Its cash flow has been temporarily influenced by milestone closures.

NCC had withdrawn its guidance for the entire year after its second quarter earnings. Protracted monsoon season, delay in commencement of work on certain projects due to approval issues, and stretched payment cycle in JJM projects were among the key worries highlighted.

NCC shares were down 2% at ₹148.95 apiece just after market open on Friday. The stock has declined 37.3% in the past year.

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