NCC Limited – Q4 FY26 Results

key financial highlights

• Revenue from Operations:
  • Revenue (Q4 FY26): ₹6,232.71 Crores
    • QoQ Change: +28.03%
    • YoY Change: +1.66%
  • Previous Quarter (Q3 FY26): ₹4,868.29 Crores
  • Previous Year (Q4 FY25): ₹6,130.88 Crores
• Profit After Tax (PAT):
  • PAT (Q4 FY26): ₹216.77 Crores
    • QoQ Change: +60.31%
    • YoY Change: -18.22%
  • Previous Quarter (Q3 FY26): ₹135.22 Crores
  • Previous Year (Q4 FY25): ₹265.07 Crores
• QoQ Performance:
  • Revenue Trend: Construction execution improved strongly on a sequential basis leading to robust quarterly revenue growth.
    
  • Profit Trend: Profitability recovered sharply QoQ after the previous quarter exceptional provision related to employee benefit expenses.

Margin Analysis

Drivers:

• Construction expenses remained elevated.
• Finance costs increased significantly YoY.
• Working capital requirements impacted operational efficiency.
• Exceptional provision impacted annual profitability.
• Operating margins weakened compared to previous year.

Insight:

• Despite strong execution growth, margin compression and finance costs continued to pressure overall profitability.

Segment performance

Segments: Construction

• Revenue: ₹6,183.32 Crores
• Insights:
  • Core contributor to overall business revenue.
  • Sequential growth remained strong.
  • Infrastructure execution momentum continued.

Segments: Real Estate

• Revenue: ₹49.39 Crores
• Insights:
  • Real estate contribution remained relatively small.
  • Stable segment performance during the quarter.

Segment insight

Business Summary:

The company’s business remains heavily dependent on its construction and infrastructure segment, which continues to drive execution and revenue generation.

Key Characteristics:

• EPC-focused infrastructure business.
• Strong exposure to roads, buildings, metro, railways and water projects.
• High working capital intensive operations.
• Government and public infrastructure linked revenues.
• Large execution-driven business model.

Earning quality check

Key Drivers:

• Operating cash flow turned negative during FY26.
• Higher receivables and inventory buildup impacted cash generation.
• Borrowings increased significantly.
• Finance costs remained elevated.
• Cash balance declined YoY.

Interpretations:

• While reported earnings remained profitable, cash flow quality weakened due to higher working capital consumption and increased debt dependence.

balance sheet Analysis

• Total Assets: ₹26,006.07 Crore
• Total Liabilities: ₹17,976.95 Crore

Insight:

• The balance sheet expanded significantly due to higher current assets and project execution scale, though rising liabilities and borrowings indicate increased leverage pressure.

key risks

• High working capital intensity.
• Delayed project payments and receivables risk.
• Rising finance cost burden.
• Infrastructure execution delays.
• Margin pressure from raw material and subcontracting costs.
• Dependence on government infrastructure spending.

management strategy signals

Focus Area:

• Accelerating project execution.
• Strengthening infrastructure order pipeline.
• Improving working capital efficiency.
• Expanding construction business scale.
• Maintaining diversified project portfolio.
• Improving operational productivity.

Financial metrics table

Quarterly Performance Context