NCC shares jump 6% after BSNL order win nearly equals its market capitalisation

Infrastructure company NCC Ltd on Tuesday (March 25) said it has received two advance work orders worth a total of ₹10,804.56 crore (excluding GST) from Bharat Sanchar Nigam Limited (BSNL) for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network of BharatNet.

"...we are pleased to inform that, the Company has received 2 (Two) Advance Work Orders dated 25th March 2025 from Bharat Sanchar Nigam Limited (BSNL) for Design, Supply, Construction, Installation, Upgradation, Operation and Maintenance of middle mile network of BharatNet, in Uttarakhand Telecom Circle (against Package No.- 05) and Madhya Pradesh, DNH & DD Telecom Circles (against Package No.- 01)," NCC said in a regulatory filing.

The first contract, valued at ₹2,647.12 crore, covers the Uttarakhand telecom circle, while the second, worth ₹8,157.44 crore, pertains to Madhya Pradesh, Dadra & Nagar Haveli, and Daman & Diu telecom circles. Both projects have a three-year construction period and a 10-year maintenance period.

Also Read: NCC bags ₹218.8-crore transportation order from a state government

According to NCC’s policy on determination of materiality of events and information, contracts exceeding ₹1,000 crore are classified as major orders.

The order size is nearly the same as the company's overall market capitalisation. As of Tuesday's close, NCC had a market capitalisation of ₹12,836 crore.

NCC Ltd reported a 12.5% year-on-year (YoY) decline in net profit at ₹193.2 crore for the third quarter that ended December 31, 2024. In the corresponding quarter of the previous fiscal, NCC Ltd posted a net profit of ₹220.7 crore.

The company's revenue from operations increased 1.6% YoY to ₹5,344.5 crore against ₹5,260 crore. At the operating level, EBITDA fell 16.6% to ₹420.9 crore in Q3 of this fiscal over ₹504.4 crore last year.

The EBITDA (earnings before interest, tax, depreciation, and amortisation) margin stood at 7.9% in the reporting quarter as compared to 9.6% in the corresponding period in the previous fiscal. The company has reported basic and diluted EPS of ₹3.08 for the third quarter against ₹3.51 in Q3FY24.

Also Read: NCC shares rise 5% after ₹1,480 crore order win from the Bihar government

Shares of NCC Ltd ended at ₹205.25, down by ₹3.90, or 1.86%, on the BSE.