Event Participants
Executives
3 R. S. Raju, Sanjay Pusarla, Neeraj Sharma
Analysts
8 Abhishek Maheshwari, Aditya Sahu, Deeya Jain, Karan Gupta, Parikshit Kandpal, Parvez Qazi, Shravan Shah, Vaibhav Shah, Vishal Periwal
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Order Book | ₹81,214 crores | Book-to-bill of ~3.5x; standalone ₹71,312 cr, subsidiaries ₹9,902 cr (as of June 30, 2026) |
| Order Inflow | ₹3,889 crores | Q1 FY27; ₹4,542 cr including July orders; driven by Buildings, Water & Railways divisions |
| Revenue (Consolidated) | ₹5,842 crores | +12% YoY vs ₹5,208 cr; highest Q1 consolidated turnover in NCC history |
| Revenue (Standalone) | ₹4,952 crores | +12% YoY vs ₹4,430 cr; highest Q1 standalone turnover in NCC history |
| EBITDA (Consolidated) | ₹545.12 crores (9.38%) | Margin up 57 bps YoY from 8.81% |
| EBITDA (Standalone) | ₹442.45 crores (9.01%) | Margin flat YoY (9.02% in Q1 FY26) |
| PBT (Consolidated) | ₹311.64 crores (5.33%) | Up from ₹268.36 cr (5.15%) in Q1 FY26 |
| PAT (Consolidated) | ₹216.40 crores (3.7%) | Up from ₹192.14 cr (3.69%) in Q1 FY26 |
| EPS | ₹2.98 | vs ₹3.03 in Q1 FY26 |
| Net Debt (Standalone) | ₹2,008 crores | Up from ₹1,497 cr in Q1 FY26; debt booked ₹2,410 cr |
| Net Debt (Consolidated) | ₹3,513 crores | Up from ₹1,574 cr YoY; includes ₹1,461 cr smart meter debt |
| Debt-Equity Ratio | 0.31 | vs 0.30 at March '26; 0.24 in Q1 FY26 |
| Working Capital (excl. cash & margin) | ₹5,334 crores (95 days) | vs ₹4,887 cr (97 days) at start of FY27 |
| Trade Receivables | ₹3,055 crores (68 days) | Down from ₹3,336 cr (73 days); 77 days in Q1 FY26 |
| Unbilled Revenue | ₹7,414 crores (38%) | Up from ₹6,675 cr; ₹780-800 cr certified in early July |
| Capex | ₹170 crores | vs ₹500 cr budgeted for FY27 |
| Vizag Urban Receivables | ₹271 crores | Down from ₹291 cr at March '26; expected recovery by Dec 2026 |
Geographic & Segment Commentary
Buildings Division: Largest segment at ₹22,357 crores (28% of order book). Key contributor to Q1 order inflows along with Water & Railways.
Transportation Division: Order book of ₹16,344 crores (20% of total). No major project-specific updates shared.
Electrical T&D Division: Order book of ₹13,312 crores (16% of total). Steady pipeline contribution.
Mining Division: Order book of ₹13,400 crores (16% of total). Includes long-duration contracts spanning up to 7 years.
Water & Railways Division: Order book of ₹10,994 crores (14% of total). Key driver of new order wins in Q1.
Irrigation Division: Order book of ₹4,806 crores (6% of total). Includes Ken-Betwa link project (₹3,390 cr total value; ₹116.35 cr executed so far).
Client Mix: State government entities/PSUs account for ~60% of order book; central govt 14%; state govt 19%; ADB/AIIB/banks 5%; private sector 4% (growing focus area).
Company-Specific & Strategic Commentary
Smart Meter Projects: NCC Quantum Technologies serves as holding company for two smart meter SPVs (Maharashtra - RAY and Marathwada, plus Bihar). Total investment ~₹460 crores completed; no further equity requirement. Annual O&M run-rate of ~₹1 crore per 1 lakh meters expected post-capEx completion by March 2027; IRR target of 18%.
JJM Projects: Total outstanding receivables of ₹2,771 crores (UP); collected ₹610 crores in Q1 and ₹413 crores in July. Substantial completion expected in FY27 if payment flows continue.
BharatNet/OFC: Balance order book of ₹6,500 crores; cumulative revenue ₹620 crores (Q1: ₹185 crores). Fixed-price contract with OFC price inflation impacting margins; management engaging with ministry for resolution.
Guidance Initiation: First-time formal FY27 guidance provided to market - order inflow ₹22,000-25,000 crores, revenue growth 8-10%, EBITDA margin 8.5-9%.
Private Sector Entry: Actively venturing into private client projects (currently 4% of order book), a strategic shift from predominantly government-focused portfolio.
TBM Commissioning: Tunnel Boring Machine expected to start operations from Q3 FY27, impacting depreciation trajectory.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Order Inflow | ₹22,000-25,000 crores (FY27) | Backed by prospective bid pipeline of ~₹2.5 lakh crores |
| Revenue Growth | 8-10% YoY (FY27) | Conservative vs Q1 run-rate of 12%; dependent on client fund allocation and approvals |
| EBITDA Margin | 8.5% to 9% (FY27) | Q1 achieved 9.38% (consolidated); guidance reflects uncertainty in commodity prices and execution environment |
| Capex | ₹500 crores (FY27) | Q1 incurred ₹170 crores |
| Debt | ~Flat by March 2027 | Standalone debt to remain at current levels; dependent on JJM collections |
| Vizag Urban Recovery | Full ₹271 crores by December 2026 | Court-monitored recovery schedule |
| Smart Meter CapEx | Completion by March 2027 | All three projects (Maharashtra x2, Bihar) to be fully installed; ~45% meters installed to date |
| AP Capital City Receivables | ₹142 crores realization in Q1/Q2 FY27 | Old projects expected to be fully recovered |
Risks & Constraints
| Risk | Context |
|---|---|
| Client Fund Allocation | Execution pace remains hostage to state government fund releases and approvals. Management highlighted this as the primary uncertainty driving conservative FY27 guidance despite strong Q1. |
| OFC Commodity Price Inflation | BharatNet is a fixed-price contract; aluminum, copper, and OFC cable price increases may compress margins. ~81% of contracts have price variation clauses providing partial compensation. Management seeking resolution at ministry level. |
| Smart Meter Concentration | Consolidated net debt increased to ₹3,513 crores, largely driven by ₹1,461 crores drawn for smart meter projects. No further equity requirement, but project completion timelines critical to avoid cost overruns. |
| Sub-Judice Receivables | Mission Bhagiratha receivables of ~₹180 crores from Telangana government under court proceedings; ₹50 crores received with balance expected at 15% monthly installments. Outcome uncertain. |
| Ken-Betwa Land Acquisition | Media reports of protests at Daudhan Dam site; management states impact is minimal as agitation is 20-30 km from actual site. Local administration resolving issues. |
| Contracting Model Shift | Increasing PPP/HAM/annuity contracts will change debt profile and capital requirements over coming years, making leverage predictions difficult. |
Q&A Highlights
Guidance & Execution Outlook
- Question: Does the 8-10% revenue growth guidance imply lower growth in remaining quarters despite Q1's 12%? (Shravan Shah, Dolat Capital)
- Answer: Environment remains uncertain; client fund availability and approvals are the binding constraints, not execution capability. Guidance reflects a detailed exercise considering these factors. (Sanjay Pusarla)
- Question: Is there probability of revenue growth reaching 15%+? (Shravan Shah, Dolat Capital)
- Answer: Ability to execute is intact; final performance depends on client-side factors (funds, approvals, ROW). Will update as the year progresses. (Sanjay Pusarla)
JJM Collections
- Question: What is the JJM situation and when will projects complete? (Aditya Sahu, HDFC Securities)
- Answer: Total receivable of ₹2,771 crores for UP projects; collected ₹610 crores in Q1. July saw additional ₹413 crores. Total JJM order book of ₹5,881 crores (groundwater ₹3,524 cr, surface water ₹2,358 cr). Expect substantial completion in FY27 if payments continue. (Sanjay Pusarla)
Smart Meters
- Question: What is the pending equity requirement and project returns? (Parvez Qazi, Nuvama; Karan Gupta, Cavi Capital)
- Answer: No pending equity - ₹460 crores fully invested. Total project debt of ₹1,461 crores. Expected completion by March 2027; O&M revenue of ~₹1 crore per 1 lakh meters annually; IRR target of 18% on total capital. ~45% of total 7-8 million meters installed (Maharashtra beyond 50%, Bihar lower). (Sanjay Pusarla)
Debt & Working Capital
- Question: Can you explain the significant YoY increase in consolidated net debt? (Parikshit Kandpal, HDFC Securities)
- Answer: Increase driven by ₹1,350 crores drawn for smart meter projects since June 2025, plus ₹160-170 crores for capex at holdco level. Out of ₹3,513 crores consolidated net debt, ₹1,461 crores is smart meter related. (Sanjay Pusarla)
- Question: How will standalone debt move by March 2027? (Vaibhav Shah, JM Financial)
- Answer: Expected to remain flat around ₹2,400 crores, potentially declining if JJM collections come through as anticipated. (Sanjay Pusarla)
BharatNet & OFC Pricing
- Question: With fixed-price contract and OFC price increases, will BharatNet incur losses? (Parikshit Kandpal, HDFC Securities)
- Answer: May result in lower profits but not losses. Prices expected to stabilize; engaging with ministry-level authorities to address supply and pricing issues. Long-duration project - current prices may not persist. (Sanjay Pusarla, Neeraj Sharma)
Ken-Betwa Status
- Question: Have land acquisition protests affected execution? (Krish Bhatia, Anand Rathi)
- Answer: Making reasonably good progress; protest site is 20-30 km from actual work site with minimal impact. Local administration resolving agitator issues. Total project value ₹3,390 crores with ₹116.35 crores executed; fully mobilized with equipment on site. (Sanjay Pusarla)
Debt & Receivables Recovery
- Question: What is the Vizag Urban and AP Capital City recovery status? (Vaibhav Shah, JM Financial)
- Answer: Vizag Urban ₹271 crores expected fully by December 2026. AP Capital City old projects ₹142 crores expected in Q1/Q2 FY27. (Sanjay Pusarla)
Mission Bhagiratha Receivables
- Question: Update on ₹180 crores Telangana receivables under court proceedings? (Srinath Reddy, REI Investments)
- Answer: Received ₹50 crores; balance expected at 15% per month. Matter is sub judice - declined further comment. (Sanjay Pusarla, Neeraj Sharma)
Unbilled Revenue
- Question: Why has unbilled revenue ballooned faster than revenue? (Abhishek Maheshwari, SkyRidge)
- Answer: Milestone-based contracts have increased unbilled revenue; ₹780-800 crores certified in early July. Expectation of smoothening over next quarters as BSNL billing starts converting. Does not affect revenue recognition, only shifts between unbilled/certified categories. (Sanjay Pusarla)
Key Takeaway
NCC delivered a record Q1 FY27 with 12% YoY revenue growth to ₹5,842 crores consolidated and EBITDA margin improvement to 9.38%, providing a strong start against the newly introduced FY27 guidance of 8-10% growth and 8.5-9% EBITDA margin. The company's ₹81,214 crore order book (3.5x book-to-bill) is fully executable, with all divisions contributing across a diversified seven-segment portfolio. Management's strategic focus centers on smart meter projects (₹1,461 crores debt, 18% IRR target, completion by March 2027), JJM receivable monetization (₹2,771 crores outstanding with improving collections), and entering private sector projects (4% of order book). The guidance reflects continued uncertainty around client fund allocation and commodity price inflation, particularly OFC cables impacting the fixed-price ₹6,500 crore BharatNet contract, partially mitigated by price variation clauses on 81% of contracts. Watch items include consolidated debt trajectory (₹3,513 crores net), sub-judice recoveries, Ken-Betwa execution progress, and TBM-driven depreciation increases from Q3. Management maintains execution capability is unchanged, with performance dependent on client-side approvals and fund flows; FY28 guidance will follow completion of FY27.