NCC (NJCC IN) – Q1FY27 Result Update – Guidance initiated, margin to improve in FY27 – BUY
Published on 08 Aug 2026
NCC reported a better-than-expected Q1FY27 performance, with revenue growing 12% YoY, 5% ahead of both our and consensus estimates, while EBITDA margin remained stable YoY at 9%. Importantly, management has initiated FY27 guidance, targeting revenue growth of 8 to 10% (vs. a 9% decline in FY26), EBITDA margin improvement to 8.5–9.0% (vs. 8.3% achieved in FY26), and order inflows of INR 220–250bn. The return to revenue growth guidance should help reinforce confidence in the quality and execution potential of NCC’s robust INR 713bn order book (~4x TTM revenue). Balance-sheet metrics also continued to improve, with receivable days declining to 68 and collections from JJM projects normalising, supporting management’s expectation of broadly stable debt by FY27-end. NCC secured INR 45.4bn of new orders through July-26, while reiterating that its reported order backlog comprises only executable projects (no slow moving). We retain BUY with an unchanged TP of INR 195, based on 15x FY28E EPS.
