NCC Limited, a prominent infrastructure and construction company in India, announced its Q1 FY26 financial results on 5th August 2025. The company reported a decline in both revenue and profit on a year-on-year (YoY) basis, reflecting a soft quarter for the infrastructure segment.
For the quarter ended 30th June 2025, NCC posted a consolidated Profit After Tax (PAT) of ₹192.14 crores against revenue of ₹5,178.99 crores. This translates to an 8.47% YoY drop in profit and a 6.31% YoY decline in revenue, highlighting operational and market pressures.
Detailed Analysis of NCC Q1 FY26 Consolidated Results
The consolidated results for Q1 FY26 indicate a moderate decline in both top-line and bottom-line metrics compared to the same quarter in FY25.
| Particulars | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | ₹5,178.99 crores | ₹5,527.98 crores |
| Profit Before Tax (PBT) | ₹485.06 crores | ₹508.26 crores |
| Profit After Tax (PAT) | ₹192.14 crores | ₹209.92 crores |
Key Observations:
-
Revenue Decline: Revenue dropped by 6.31% YoY, reflecting delays or slowdowns in project execution and possibly lower order inflows during the quarter.
-
Profitability Pressure: PAT decreased by 8.47% YoY, indicating margin compression in addition to lower revenue.
-
PBT Trend: PBT declined to ₹485.06 crores from ₹508.26 crores in Q1 FY25, highlighting subdued operating performance.
The slight dip in revenue and profitability indicates a challenging operating environment for the construction sector in the quarter.
Standalone Financial Performance of NCC in Q1 FY26
Standalone results provide a clear view of NCC’s core domestic operations:
| Particulars | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | ₹4,378.21 crores | ₹4,713.28 crores |
| Profit Before Tax (PBT) | ₹446.35 crores | ₹473.72 crores |
| Profit After Tax (PAT) | ₹190.10 crores | ₹200.74 crores |
Standalone Highlights:
-
Revenue Decline: Standalone revenue dropped 7.11% YoY, indicating reduced project execution in core domestic markets.
-
Profit Decline: Standalone PAT fell 5.30% YoY, reflecting limited cost absorption on lower revenues.
-
Operational Trend: Both revenue and profit indicate a soft quarter, though the decline remains moderate compared to some peers in the sector.
Year-on-Year Performance Overview
NCC’s YoY Q1 FY26 performance highlights a subdued quarter for the company:
-
Consolidated Revenue Decline: 6.31%
-
Consolidated PAT Decline: 8.47%
-
Standalone Revenue Decline: 7.11%
-
Standalone PAT Decline: 5.30%
The double-digit revenue growth seen in prior years slowed, possibly due to project delays, regulatory hurdles, or lower new order wins.
NCC Share Price Performance
On 6th August 2025, following the results announcement, NCC’s stock reflected positive market sentiment despite the earnings decline.
-
Opening Price: ₹210.00 per share
-
Current Trading Price: ₹216.41 per share
Long-term Share Performance:
-
1-Year Returns: -30.45%
-
5-Year Returns: 602.66%
-
All-Time Returns: 3,850.88%
Despite negative short-term returns, NCC has delivered strong multi-year growth for long-term investors. However, the recent dip highlights the importance of market cycles and project execution speed in the construction sector.
Factors Behind Q1 FY26 Decline
Several elements may have contributed to NCC’s Q1 FY26 decline in revenue and profitability:
-
Project Execution Slowdown: Delays in large infrastructure projects or delayed approvals can affect quarterly revenue.
-
Margin Pressure: Rising raw material and labor costs may have compressed margins.
-
Order Flow Volatility: Infrastructure companies are heavily dependent on government tenders and project inflows; any slowdown impacts earnings.
-
Seasonal Impact: Monsoon season often causes delays in construction and project work, affecting quarterly performance.
Investor Outlook and Future Prospects
While Q1 FY26 reflects a softer quarter, NCC’s long-term prospects remain tied to India’s infrastructure growth story. Ongoing government initiatives in roadways, smart cities, and urban infrastructure could drive future order inflows and execution.
Potential Future Catalysts:
-
Government Infrastructure Push: Increased public spending in roads, railways, and housing projects can boost order books.
-
Project Diversification: Expansion into new segments like urban infrastructure, water management, and metro projects can drive growth.
-
Operational Efficiency: Optimizing project execution timelines will be key to restoring revenue momentum.
Investor Note:
NCC’s current stock price movement reflects cautious optimism. Long-term investors may see value in the company due to its multi-decade infrastructure experience, but short-term volatility remains a factor.
Conclusion
NCC’s Q1 FY26 results show a profit decline of 8.47% YoY and revenue drop of 6.31% YoY, indicating a challenging quarter for the construction major. Standalone figures mirrored the consolidated trend with moderate declines in revenue and profit.
Despite the subdued quarterly performance, NCC’s long-term story remains linked to India’s infrastructure expansion. Investors with a long-term horizon may continue to monitor order book growth, execution speed, and government policy support to assess future potential.
