Detailed Narrative
Q2 & H1 FY26 Financial Performance Overview
NBCC reported a strong Q2 FY26 with consolidated total income reaching ₹3,017 crores, marking a 20% year-on-year increase. Consolidated PAT for the quarter stood at ₹157 crores, reflecting a 25% YoY growth. On a standalone basis, the company achieved a total income of ₹2,225 crores and a PAT of ₹173 crores, demonstrating a significant 40% YoY growth. The EBITDA margin for the quarter-to-quarter period saw a slight reduction due to lower contributions from real estate projects and marketing fees from Amrapali projects, though H1 EBITDA margin increased YoY.
Robust Order Book and New Business Secured
The company's consolidated order book remains robust at ₹1,28,000 crores, with the standalone order book at ₹1,12,000 crores. NBCC secured new business worth ₹6,800 crores on a consolidated basis in Q2 FY26, bringing the total secured business for H1 FY26 to ₹10,000 crores. Key projects secured include Rajasthan State Industrial Development and Investment Corporation (RIICO) worth ₹3,136 crores and the development of Naveen Nagpur for NMRDA valued at ₹3,000 crores. Additionally, ₹3,752 crores worth of projects were awarded in H1 FY26.
Strategic Focus on Redevelopment Projects and Funding
The consolidated order book is composed of 47% PMC and 53% redevelopment projects, with ₹67,000 crores attributed to redevelopment. Large redevelopment projects like MAHAPREIT (₹25,000 crores) and J&K (part of ₹40,000 crores) are transitioning from requiring NBCC to arrange funds to clients securing loans. HUDCO has sanctioned ₹11,000 crores for Naveen Nagpur (including land acquisition) and ₹3,000 crores for MAHAPREIT, facilitating the commencement of these self-sustainable projects. Approximately ₹34,000 crores of projects are currently running and are expected to be completed within 2-3 years.
Future Growth and Margin Outlook
Management provided a guidance of a minimum 20% revenue growth for both FY26 and FY27. For FY26, the company targets a PAT margin of 7-8% and an EBITDA margin of 6-6.5%. Looking further ahead, NBCC expects to achieve a topline of ₹25,000 crores and a PAT of ₹2,000 crores by FY28. The company anticipates achieving double-digit EBITDA margins once major redevelopment projects like 37D and Ghitorni start contributing significantly.
Real Estate Strategy Shift and Project Updates
NBCC's real estate revenue for H1 FY26 was ₹26 crores, with a full-year target of ₹64-65 crores. The company is strategically shifting some real estate assets, such as in Bhubaneswar, from outright sale to a leasing model to generate fixed revenue streams, impacting immediate sales figures but retaining assets. The Ghitorni land project, spanning 21 acres, is projected to generate ₹7,000-8,000 crores in revenue and ₹4,000-5,200 crores in PAT, with construction expected to begin by year-end or Q1 next year. The Super-tech projects are awaiting a Supreme Court decision following a hearing on December 8, 2025.
Pipeline and International Expansion
NBCC expects to award ₹10,000-12,000 crores of new works in H2 FY26, with a minimum target of ₹10,000 crores. This includes floating tenders worth ₹4,000-5,000 crores for Netaji Nagar this quarter. The company is also in talks for new Delhi colony redevelopment projects, expected this year. International expansion is being pursued through strategic MOUs with an Australian real estate developer and Pantheon Elysee Real Estate Development LLC for projects in UAE.