NCC Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹4,868 Cr
verified against source
Revenue YoY
-9%
reported change
EBITDA
₹436.24 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
NCC Limited reported a challenging Q3 FY26 with consolidated revenue of ₹4,900 crore, down 9% YoY, as execution headwinds persisted primarily from Jal Jeevan Mission (JJM) payment delays. EBITDA margin held at 8.96% (vs 8.24% YoY) due to operational discipline, though PAT declined to ₹122.46 crore. The order book remains robust at ₹79,571 crore, supported by Q3 inflows of ₹12,430 crore. JJM execution was severely constrained at ₹82 crore in Q3 (₹1,500 crore YTD vs ₹4,000-5,000 crore guided), but payments have started flowing with ₹560 crore received and ₹17,000 crore budgeted for release by March 2026. Management withdrew FY26 guidance citing execution uncertainty, though January has shown momentum recovery. Gross debt rose to ₹2,980 crore (net ₹2,830 crore), with target of ₹2,400 crore by year-end contingent on JJM payments. Key risks: JJM payment cadence remains unpredictable; building segment declining 14% YoY; working capital stretching with DSO at 87 days; inability to provide clear Q4 revenue guidance despite half the quarter elapsed.
Colored figures show movement against the previous available record.
Guidance to track
- Management formally withdrew FY26 guidance and declined to provide specific Q4 revenue numbers despite Q4 FY25 base of ₹5,383 crore, citing payment uncertainty from JJM projects and projects still in mobilization phase.
- Centre has created revised estimates of ₹17,000 crore to be released before end of March 2026, with ₹67,670 crore budgeted for FY27, expected to unlock execution.
- Management expects Q4 to be a 'good quarter' versus Q3 performance, with JJM and other projects (Tunnel, Coastal Road, Ken-Betwa) now fully mobilized and progressing.
- FY27 capex guidance of approximately ₹400 crore including mining division equipment (₹300-350 crore) and TBM-related capex, with phase-wise deployment.
Risks flagged
- JJM projects (₹7,000 crore order book) remain severely constrained with only ₹82 crore Q3 execution. Management admits they cannot control client payment release patterns, making execution recovery unpredictable.
- DSO increased from 78 to 87 days, unbilled revenue rose to ₹7,129 crore (44% of turnover), and gross debt jumped ₹865 crore in one quarter to ₹2,980 crore, straining balance sheet.
- Analyst highlighted 14% YoY decline in building segment, but management attributed it entirely to JJM factors without providing segment-level breakdown or recovery timeline for standalone building orders.
- Management declined to discuss break-even timeline or profit-sharing structure for the ₹377 crore smart meter SPV investment, citing confidentiality concerns, limiting investor visibility on ROI.
Key quotes
- Formally we have withdrawn the guidance for FY26. We will make all possible attempts to report whatever base that is possible for the current quarter but definitely it will be a good quarter.
- The ability of the clients to make timely payment — if you do a thorough analysis, there are few signature projects that have given us very good profitability and revenue in the past, those projects have not been making timely payment.
- We have to holistically look at the projects. What is the nature of the project? Value is also important but that is not the only driver. What kind of complexity? Who is the client? What is the funding in place?
- Whatever money we are getting from JJM, it will lead to conversion of my unbilled revenue into billing. Earlier the billing was not done because of certification and client also did not certify because payments are not being made.
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