1. Opening Hook
Just when NCC thought concrete was its biggest strength, the monsoon proved who’s boss. 🌀 The company, buried under rain clouds and delayed payments, finally threw in the towel on its FY26 guidance. From towering order books to trickling cash flows—this quarter was less “National Construction Company” and more “National Confusion & Caution.” But wait—despite pulling guidance, the order book is still massive, and the capex ambitions got a surprise upgrade.Keep reading; things get damp, dramatic, and delightfully revealing.
2. At a Glance
- Revenue ₹4,585 crore– Down 12%; even rain gods took a commission.
- EBITDA 8.7%– Margins stayed steady despite slipping feet.
- PAT ₹154 crore (3.37%)– Profits built on slippery slopes.
- Order Book ₹71,957 crore– Bigger than ever, but execution on pause.
- Net Debt ₹1,890 crore– Up ₹263 crore; umbrellas aren’t cheap.
- Capex ₹1,050 crore (revised up)– Because mining dreams don’t wait for sunshine.
- ROCE 9.8% (down from 14.6%)– Cemented slowdown visible in returns.
3. Management’s Key Commentary
“Due to the challenging environment and elongated payment cycles, we’ve decided to withdraw guidance.”(Translation: We can’t predict the weather—or client payments—so better stay vague. ☔)
“Our order book is ₹71,957 crore, with ₹6,223 crore new this quarter.”(Translation: We’re great at winning tenders, just not at turning them into cash—yet.)
“Revenue declined 12% YoY; EBITDA at 8.7% consolidated.”(Translation: Efficiency held up even as the top line drowned.)
“Debt increased by ₹263 crore, but debt-equity at 0.28 is still comfortable.”(Translation: Not panic mode yet—just a mild credit cardio workout.)
“We revised capex from ₹750 crore to ₹1,050 crore due to a new ₹6,800 crore mining order.”(Translation: When life rains on projects, dig mines instead.⛏️)
“We expect to update guidance by March 2026.”(Translation: Don’t hold your breath; bring snacks till summer.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | Change / Comment |
|---|---|---|---|
| Revenue (Consol) | ₹4,585 cr | ₹5,224 cr | -12%; monsoon met margin compression |
| EBITDA Margin | 8.7% | 8.5% | Margins held; credit to cost control |
| PAT Margin | 3.37% | 3.12% | Barely moved—profitability waterproofed |
| Order Inflow (H1 FY26) | ₹9,881 cr | — | 9.9k cr inflow, mainly buildings & water |
| Net Debt | ₹1,890 cr | ₹1,624 cr | Up ₹266 cr; working capital ballooned |
| ROCE | 9.8% | 14.6% | Painful fall—return on cement dropped |
| Capex Planned (FY26) | ₹1,050 cr | ₹750 cr | +40%; mining capex binge |
| JJM Receivables | ₹1,700 cr | ₹1,700 cr | Same number, new excuses |
Even the cement looks tired of waiting for payment cycles to end.
5. Analyst Questions
Q:Why withdraw guidance with such a fat order book?A:“Rains and delayed payments.”(Translation:Nature’s audit passed, finance’s didn’t.)
Q:Margins for H2?A:“We’ll see in March.”(Translation:Try your luck next quarter.*)
Q:What’s up with JJM dues?A:“Still ₹1,700 crore; traction happening.”(Translation:Still waiting for the government to turn on the tap.*)
Q:Private sector buildings?A:“A couple of projects in progress.”(Translation:We’re testing the private waters—slowly.*)
6. Guidance & Outlook
The big reveal—
