The civil construction sector in India is poised for significant growth, with projections indicating a revenue increase of 12-15 percent in FY2025. The government’s capital expenditure for infrastructure development has reached Rs 11.1 trillion, reflecting a 16.9 percent year-on-year rise, positioning India to become the third-largest construction market globally by 2025.
Price Movement
With a market capitalization of Rs 12,764.12 crore, the shares of NCC Ltd closed at Rs 204.25 per share, increased around 1.44 percent as compared to the previous closing price of Rs 201.50 apiece.
Matter explanation
NCC Limited holds a strong project pipeline of over Rs 2.4 lakh crore, with an order book of Rs 55,548 crore. FY25 guidance targets Rs 20,000- Rs 22,000 crore in new orders, 5 percent revenue growth, and a 9.25 percent EBITDA margin. Slower execution due to elections and longer billing cycles has impacted performance.
Economic Overview
The Union Government’s CAPEX faced Q1 FY25 delays due to elections and adverse monsoons. The FY26 Budget raises CAPEX by 10.1 percent to Rs 11.2 lakh crore, with increased grants and public sector spending. Total CAPEX is set to grow 16.4 percent, reaching Rs 19.8 lakh crore in FY26 from Rs 17 lakh crore in FY25.
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Project Performance
NCC Limited’s buildings and transportation divisions lead with order books of Rs 21,085 crore and Rs 10,800 crore, respectively. Water, electrical T&D, irrigation, and mining segments hold Rs 5,450 crore, Rs 10,633 crore, Rs 4,496 crore, and Rs 3,050 crore. An L1 pipeline of Rs 9,000-Rs 10,000 crore is expected to convert into LOAs in Q4 FY25.
New Development
NCC Limited secured contracts for the Ken-Betwa river interlinking project, highlighting growth potential in the sector. Its smart meter projects in Maharashtra and Bihar are progressing well, with substantial installations completed in Bihar, reinforcing its presence in India’s infrastructure and utility sectors.
Future Outlook
NCC Limited remains cautiously optimistic for FY26, anticipating growth in line with past 25% trends. Specific guidance will follow project evaluations in April-May 2025. With government projects resuming normal operations, management expects increased activity and order flow in the coming quarters, supporting long-term growth.
Company Overview
NCC Limited secured contracts for the Ken-Betwa river interlinking project, highlighting growth potential in the sector. Its smart meter projects in Maharashtra and Bihar are progressing well, with substantial installations completed in Bihar, reinforcing its presence in India’s infrastructure and utility sectors.
Written by Abhishek Singh
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