NCC (NJCC IN) – Q2FY27 Result Update – Upside risk to the guidance – BUY
Published on 07 Nov 2026
NCC reported a strong Q2FY27 performance, with standalone revenue growing 31% YoY, driven by improved execution across key divisions, while EBITDA margin expanded 100bps YoY to 8.5%. Management retained its FY27 guidance of 8–10% revenue growth, 8.5–9.0% EBITDA margin and INR 220–250bn order inflows, which we believe is conservative, leaving room for upside. Improved execution momentum has led us to upgrade our EPS estimates by 9%/7%/1% for FY27E/FY28E/FY29E, respectively. On the balance sheet front, trade receivables declined to INR 27.0bn and unbilled revenue moderated to INR 71.7bn, while improving JJM collections are expected to support working capital and enable debt normalisation by FY27-end. NCC's standalone order book remains robust at INR 712.9bn (~3.5x TTM revenue), with the company having achieved ~50% of its FY27 order inflow guidance, including October awards. We retain BUY with a revised TP of INR 201, valued at 13x 1HFY29 EPS. Key monitorables remain sustained order inflows and a ramp-up in execution.
