NBCC (India) Limited reported robust performance for Q1 FY27, with standalone revenue at INR 1,823 crore and consolidated revenue at INR 2,260 crore, marking a 10% YoY increase. The company highlighted a strong order book of INR 1,12,000 crore standalone and INR 1,27,000 crore consolidated, with projections of securing INR 50,000-60,000 crore in new orders this year. Management also discussed redevelopment projects, the HSCC merger, and future revenue targets.
NBCC Reports Strong Q1 FY27 Performance
NBCC (India) Limited has announced its financial results for the first quarter of FY27, showcasing significant growth and a robust project pipeline. The company achieved a standalone revenue from operations of INR 1,823 crore, and a consolidated revenue of INR 2,260 crore. This represents a 10% year-on-year increase on a standalone basis. The standalone EBITDA also saw a substantial jump, growing by 62% to INR 160 crore from INR 99 crore in the corresponding quarter last year, with an EBITDA margin of 8.77%. Standalone profit after tax stood at INR 151 crore, a 32% YoY increase.
Robust Order Book and Future Prospects
The company’s order book position remains exceptionally strong, with a standalone order book of INR 1,12,000 crore and a consolidated order book of INR 1,27,000 crore. In Q1, NBCC secured business worth INR 1,600 crore on a consolidated basis, including projects for schools in Odisha and J&K, and the New Andhra Pradesh Bhavan in Delhi. Furthermore, NBCC has secured major works in July and August, such as a housing project in Seychelles (INR 620 crore) and a residential and office complex for the Reserve Bank of India in Amravati (INR 780 crore). The company also awarded INR 1,700 crore in new tenders in Q1 and anticipates awarding INR 18,000 to 20,000 crore in new works over the next 2-3 quarters. Looking ahead, NBCC expects to secure INR 50,000 to 60,000 crore in new orders this year, with major orders from Supertech, J&K, and Rajasthan Mandapam expected.
Redevelopment Projects and Strategic Initiatives
Redevelopment projects are a significant focus, with ongoing work valued at INR 10,000 crore. The successful sale of the entire Bharat Business Park generated INR 10,000 crore in just three auctions. Phase 2 of the Amrapali project has commenced, and various packages of the Goa redevelopment project have also kicked off. The company also highlighted the approval of the merger of HSCC into NBCC, aiming for operational and financial synergies. NBCC has also received in-principle approval for the incorporation of a wholly-owned subsidiary as an SPV for a proposed CPSE REIT, positioning itself to play a pioneering role in creating India’s first CPSE REIT.
Margin Outlook and Financial Guidance
Management anticipates an increase in margin profile due to the contribution of high-value redevelopment and Amrapali projects, expecting margins to reach 6-6.5% PAT and a minimum of 6.5-7% EBITDA. For FY27-28, revenue targets are projected between INR 16,000 to 17,000 crore, with expectations of INR 21,000 crore for FY28 and INR 24,000-25,000 crore for FY29. PAT is projected at INR 1,100-1,200 crore for the current year, rising to INR 1,300-1,400 crore next year, and around INR 2,000 crore in FY29, with real estate projects expected to contribute significantly to profit margins.
Project Delays and Approvals
Delays in project awarding were attributed to factors such as the need for government clearances, DPR preparation, and the self-sustainable nature of projects like J&K and MAHAPREIT. While J&K project work is progressing, MAHAPREIT is expected to be finalized in the third or fourth quarter. Concerns about funding constraints were addressed, with NBCC and HUDCO facilitating seed money for some projects. The company also clarified that its projections do not currently include MAHAPREIT. The Dubai operations are on track, with a developer license obtained and housing units under construction. The company remains confident in achieving its projected figures and targets, emphasizing its strong order book and capable workforce.
Source: BSE
