NCC (NJCC IN) – Q4FY26 Result Update – Strong fundamentals, but FY27E caution persists – BUY
Published on 16 May 2026
After a weak standalone 9MFY26 performance, with revenue declining 16% YoY, NJCC reported a relatively stable Q4FY26, with revenue remaining broadly flat YoY and largely in line with estimates. EBITDA margin moderated to 8.4%, lower on a YoY basis but broadly in line with Street and our expectations. On the balance sheet front, the company delivered a meaningful improvement, with net debt reducing to Rs17bn versus Rs28bn in Q3FY26, while operating cash flow remained positive. Consolidated FY26 order inflows crossed Rs319bn, including a sizeable Rs115bn mining order, taking the total order book to a robust ~Rs830bn (~4.8x TTM revenue). Importantly, execution of key projects has started gaining traction, supported by mobilisation advances already received. Despite these positives, management refrained from providing FY27 guidance, citing geopolitical uncertainties or could be possibility of government austerity measures. We view this stance as largely conservative. Factoring in some near-term margin pressure, we cut FY27E/FY28E EPS estimates by 8%/2%, respectively. We maintain our Buy rating with a revised target price of Rs195, based on an unchanged 15x FY28E EPS. The stock trades close to ~1.2x FY28E BV (at last 10 years historical avg.)
