Shares of NCC Ltd surged over 5% on Monday following the company’s announcement of its Q4 earnings. The infrastructure firm reported a year-on-year (YoY) net profit increase of 6%, reaching Rs 253.8 crore for the quarter ended March 31, 2025, compared to Rs 239.2 crore in the same period last year. However, revenue from operations declined 5.5% YoY to Rs 6,120.9 crore from Rs 6,484.9 crore reported in Q4FY24.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose modestly by 1.1%, amounting to Rs 556.5 crore, up from Rs 550.3 crore in the previous year’s quarter. The EBITDA margin also improved slightly, increasing to 9% from 8.5% in Q4FY24.
For the full fiscal year FY25, NCC secured orders worth Rs 32,888 crore, including changes in scope. The consolidated order book stood at Rs 71,568 crore as of March 31, 2025, with Rs 6,247 crore attributed to standalone operations. The company’s board recommended a dividend of Rs 2.20 per equity share (110%) with a face value of Rs 2 each for FY25, subject to shareholder approval.
Notably, Rekha Jhunjhunwala, wife of the late investor Rakesh Jhunjhunwala, owned 12.48% or 7.83 crore shares of NCC during the quarter ended December 2024.
On the stock market, NCC shares climbed over 5% to close at Rs 238.90 on Monday, compared to the previous close of Rs 226.70 on the BSE. The company’s market capitalization stood at Rs 14,814 crore, with a turnover of Rs 7.71 crore as 3.29 lakh shares changed hands. Despite recent gains, the stock has declined 15.63% over six months and 15.10% over the past year.
From a technical perspective, the relative strength index (RSI) for NCC is at 59.2, suggesting the stock is neither overbought nor oversold. The stock also exhibits high volatility, with a one-year beta of 1.8.
Brokerage house CLSA noted a positive finish to FY25 but described the guidance for FY26 as mixed. CLSA downgraded its FY26-27 earnings per share (EPS) estimates by 10%-12% and revised its target price from Rs 333 to Rs 315. The brokerage referred to NCC as an inexpensive play on water and smart infrastructure, trading at a price-to-earnings (PE) ratio of 11x (excluding subsidiary value) for FY27, with an EPS compound annual growth rate (CAGR) of 18.3% for FY25-27.
Meanwhile, JM Financial maintained a Buy rating with a revised price target of Rs 285, valuing the EPC business at 16x FY27 core EPS. Despite a strong order backlog and bid pipeline, NCC guided for a conservative 10% revenue growth in FY26, which JM Financial expects to exceed with a 13% forecast. EBITDA margins are projected between 9% and 9.25%. NCC’s consolidated order inflows reached Rs 329 billion in FY25, with a standalone backlog of Rs 625 billion, approximately 3.3 times trailing twelve months (TTM) revenues.
JM Financial adjusted its FY26/27 EPS estimates downward by 14%/13% due to lower revenue, margins, and increased interest costs but anticipates a robust core EPS CAGR of 30% over FY25-27. The Buy recommendation was reaffirmed with the revised target.
Similarly, Nuvama trimmed its FY26/27 EPS estimates by 4%/7% and maintained a Buy rating with a target price of Rs 282 (valued at 17x Q4FY27 EPS). Nuvama highlighted a surge in order intake to Rs 329 billion in FY25, surpassing initial guidance, and an order book of Rs 716 billion with a book-to-bill ratio of 3.3x. The company is also the lowest bidder for projects worth Rs 70-80 billion. Management indicated revenue growth guidance of 10% for FY26 but acknowledged execution challenges due to payment delays.
NCC Limited operates across various segments of the infrastructure sector, including construction of industrial and commercial buildings, housing projects, roads, bridges, flyovers, water supply and environment projects, mining, power transmission, irrigation, hydrothermal power projects, and real estate development.
