NBCC (India) Q1 FY27 earnings call

NBCC (India) Limited delivered a robust standalone performance in Q1 FY27, with revenue from operations growing 10% YoY to INR 1,823 crores. Standalone EBITDA surged 62% YoY to INR 160 crores, pushing the EBITDA margin to 8.77%, while standalone PAT increased 32% YoY to INR 151 crores. However, consolidated revenue growth was tempered by the impact of the HSCC merger and the foreclosure of a low-margin Maharashtra government project, which affected consolidated EBITDA.

The company's consolidated order book stands at INR 1,27,000 crores as of June 30, 2026, with the standalone order book at INR 1,12,000 crores. In Q1 FY27, NBCC secured new orders worth INR 1,600 crores on a consolidated basis, including projects like schools in Odisha (INR 253 CR) and a J&K campus (INR 171 CR). Management anticipates awarding INR 18,000-20,000 crores in new works over the next 2-3 quarters, contributing to a total expected order inflow of INR 50,000-60,000 crores for FY27, with INR 30,000 crores expected from GPRA projects.

NBCC expects its margin profile to improve, targeting 6-6.5% PAT and 6.5-7% EBITDA minimum. This expansion is primarily attributed to high-value redevelopment and Amrapali projects, which are projected to contribute over 60% of the total revenue. Marketing fees from successful sales, such as the Bharat Business Park generating INR 10,000 crores, and upcoming sales from Africa Avenue and Vinayak Mandir, are also expected to boost profitability, along with 8% PMC and 1% marketing fee from Amrapali projects.

Redevelopment projects, including the 7 GPRA projects with INR 10,000 crores of balance work, are under execution and expected to be completed within two years. Amrapali Phase 1 is almost complete (23 out of 24 projects), and Phase 2 is in full swing, with 4,000-4,500 units already sold out of 8,800. For Supertech, consultancy has been awarded, and tenders are expected to be called soon, with turnover anticipated from next quarter. New real estate launches like Gurugram Sector 37-D are expected to commence sales next quarter, contributing to the targeted INR 500 crores from real estate sales this year.

The Board has accorded in-principle approval for the incorporation of a Special Purpose Vehicle (SPV) for the proposed CPSE REIT. NBCC, leveraging its real estate experience, is positioned as the logical sponsor. The company plans to transfer 75,000 sq ft of rentable assets to the SPV and is in discussions with DIPAM to identify rentable assets from other CPSEs like MTNL, ITI, and BSNL. The REIT will be launched once a considerable portfolio is gathered, with NBCC potentially taking ownership for development and refurbishment.

Several large projects, including MAHAPREIT (INR 25,000 crores), J&K (INR 15,000 crores), and Supertech (INR 10,000 crores), have faced delays due to regulatory approvals, funding requirements, and slower state government processes. Management confirmed that J&K and Supertech are now moving forward, with a INR 3,500 crore tender for J&K and Supertech tenders expected soon. NBCC is also facilitating seed funding through an MOU with HUDCO for state government projects, having already arranged INR 3,500 crores for land acquisition in Naveen Nagpur.

NBCC maintains its FY27 revenue target of INR 15,000-17,000 crores, with projections rising to INR 21,000 crores for FY28 and INR 24,000-25,000 crores for FY29. PAT is targeted at INR 1,100-1,200 crores for FY27, growing to INR 2,000 crores by FY29. Internationally, Dubai operations are on track with 66 housing units under construction and a construction tender expected in October. Following successful projects in Maldives, the Government of Seychelles has entrusted NBCC with another 1,000 houses, and opportunities in Australia, Saudi Arabia, and Fiji are being explored.