Will Fresh Orders Drive NCC's Stock Recovery?

On Dec 31, 2025, NCC Ltd announced that it had bagged four new orders during the month. The total value of the four orders is ₹1,237.24 cr (excluding GST), the infrastructure giant stated.

The regulatory filing has stated that out of the ₹1,237.24 cr:

• Buildings division accounts for ₹704.67 cr.
• Transportation division contributes ₹532.57 cr.

This ‘new orders’ announcement has come after a previous win in Nov 2025 worth ₹2,062.71 cr for the modernisation of Gauhati Medical College & Hospital.

However, the company’s shares ended the year on a cautious note, despite the positive order inflow, representing a 3.47% decline on the NSE. The company's weak earnings for the second quarter ended Sept 30 mainly influenced this market reaction.

The company’s revenue fell by 12.6% YoY, and EBITDA declined 11.5%. The EBITDA margin, however, showed resilience and expanded slightly to 8.7% compared to 8.5% in the previous year.

So, given the contrast between robust order inflows and soft quarterly financials, how can traders evaluate the company's recovery potential in the upcoming fiscal year?

Impact on the Buildings Segment

NCC’s buildings division is the main driver of its domestic operations. The fresh orders in Dec have helped the company secure a considerable monthly order value portion within the buildings segment.

Thus, the company is showing its specialisation in managing complex, large-scale civil engineering projects. Generally, NCC's buildings segment includes the construction of projects related to residential complexes, commercial office spaces, and vital public infrastructure (such as hospitals and educational institutions).

NCC has displayed its ability to bag such projects consistently. This hints at a high level of trust from both the government and private entities.

Furthermore, the focus on building infrastructure is aligning with the broader national agenda of urban development and social welfare. Projects like the modernisation of medical facilities can contribute to the company's revenue and enhance its reputation as a preferred partner for specialised high-value construction.

For investors, the steady stream of specialised orders can show a healthy execution pipeline, providing long-term revenue visibility. With the building division leading the latest order wins, does this segment provide the most stable cushion against broader market volatility for infrastructure investors?

Transportation Projects Correlating with New Growth

The transportation division is an important pillar for NCC. It contributes a huge share to the latest order basket.

This vertical mainly includes the development of highways, bridges, railways, and metro rail projects. All of these are central to the country’s infrastructure expansion.

The successful bid for these projects shows the company’s technical capability to manage large-scale engineering challenges. It requires accurate logistical planning and advanced construction methods.

Historically, transportation projects have been characterised by substantial execution timelines and high capital intensity. But they can also offer the potential for strong operational margins once the projects reach their peak execution phase.

Therefore, NCC is balancing its focus between buildings and transportation. With this, it is managing to diversify its risk profile, ensuring that a slowdown in one sector does not severely derail the overall corporate momentum.

A Robust Order Book

NCC has faced a challenging second quarter characterised by a decline in YoY revenue and operating profit. However, the massive order receipts can be a beacon of hope for stakeholders.

The management is able to secure fresh contracts even during periods of financial softness. This indicates a resilient business model that is not overly dependent on immediate quarterly fluctuations.

The operating margin expansion suggests that the company is finding ways to improve internal efficiencies and control costs despite lower top-line growth.

There is a strategic transition from legacy projects to new, high-value contracts. This can potentially revive the company's project pipeline, providing a much-needed boost to future earnings.

As the infrastructure giant enters the new year with a strengthened project pipeline, it stands in a position where strategic execution might easily bridge the gap between order success and financial excellence. We are in a market where infrastructure spending remains a top priority. So, will NCC’s aggressive order acquisition strategy lead to a major financial turnaround in 2026?

Source

CNBC