NCC (NJCC IN) – Q3FY26 Result Update – Coming out of woods – BUY
Published on 07 Feb 2026
NCC Ltd (NJCC) reported weak operational performance in Q3FY26, with standalone revenue declining 13% YoY. Despite the near-term execution softness in 9MFY26, the medium-term outlook remains constructive, supported by a strong and diversified order book of ~Rs796bn (4.5x TTM revenue), which is now gradually entering the execution stage. NJCC in the earnings call highlighted mobilization advances already received on key projects. This improvement could provide management comfort to reintroduce guidance post Q4FY26 results. Order inflows remained healthy at Rs223bn in 9MFY26, with traction across buildings, water, irrigation and transportation segments. The recent increase in leverage (D/E: ~0.40) is largely timing-driven, reflecting delayed receipts and higher working capital during mobilization, and is expected to normalize as payment flows improve. With execution expected to pick up over FY27E (modelled 10%/15% revenue growth in FY27E/28E), valuations remain attractive at current levels. The stock offers a favorable risk-reward (trading closer to 1x BV) and we have ‘BUY’ rating with TP of Rs200/sh valued at 15x FY28E EPS, factoring in execution recovery, margin normalization.
