NBCC: Ambitious Growth, Robust Margins Ahead

Ashwin Thakker

— 3 min read

NBCC's Q1 FY26 earnings call highlights a strong forward-looking strategy. The company is poised for substantial financial expansion, projecting significant revenue increases and aiming for an ambitious INR 2 lakh crore order book in the next 2-3 years. This strategic outlook underscores NBCC's focus on large-scale redevelopment projects and improved profitability, signaling a period of robust growth and enhanced shareholder value.

Key Facts: Outlook for NBCC (India) Limited

  • Sales Outlook FY26: Consolidated revenue expected at INR 14,000-15,000 crores.
  • Sales Outlook FY27: Consolidated revenue targeted at INR 18,000-19,000 crores.
  • Sales Outlook FY28: Consolidated revenue projected around INR 25,000 crores.
  • Order Book Target: Aims to exceed INR 2,00,000 crores within the next 2-3 years.
  • Order Intake FY26: Minimum INR 15,000 crores in awarded projects, with business development target of INR 20,000 crores.
  • EBITDA Margin Target FY26: Over 6% to 6.5%.
  • EBITDA Margin Target FY27-28: 8% to 9%.
  • Real Estate Sales FY26: Anticipated INR 325-350 crores from Lucknow and Bhubaneswar inventories.

Revenue Trajectory and Order Book Expansion

NBCC (India) Limited has laid out an ambitious financial roadmap for the upcoming years, projecting significant top-line growth. For the current fiscal year (FY26), the company anticipates consolidated revenue to be between INR 14,000 crore and INR 15,000 crore. This upward trend is expected to continue, with projections of INR 18,000-19,000 crore in FY27 and a substantial increase to approximately INR 25,000 crore by FY28. This growth is underpinned by NBCC's robust consolidated order book, currently standing at INR 1,20,000 crore, which the management aims to expand further.

NBCC is vigorously pursuing new business, targeting a minimum of INR 15,000 crore in awarded projects for FY26 and a business development goal of INR 20,000 crore. This push is fueled by large-scale redevelopment projects and new MoUs with state governments and PSUs holding extensive land. Management forecasts the total order book to exceed INR 2,00,000 crore within the next two to three years, ensuring sustained execution. Key upcoming drivers include INR 4,000 crore work in 7GPRA and the substantial INR 25,000 crore MAHAPREIT project.

"The top line in current year, we are expecting around INR14,000 crore to INR15,000 crores. Next year, there will be INR18,000 crores to INR19,000 crores. And '27-'28 around INR25,000 crores."
"I think, next two years, three years, our order book will be more than INR2 lakhs."

Margin Growth and Strategic Project Focus

NBCC is strategically positioned for enhanced profitability, with clear targets for its EBITDA margins. For FY26, the company aims for margins of 6% to 6.5%. Management anticipates a significant strengthening, projecting 8% to 9% for FY27-28. This improved profitability is expected to yield a robust bottom line, with PAT around INR 2,000 crore in FY27-28, aligning with the INR 25,000 crore top-line and a 7% to 8% PAT margin. The fixed overhead structure allows profit leverage as revenue grows, ensuring a healthy return on expanding operations. Focus on high-margin PMC projects and redevelopment drives this outlook.

NBCC's strategic emphasis on self-sustainable redevelopment projects like Amrapali and 7GPRA drives strong margins, averaging 8% for PMC and 1% from sales. The company actively addresses challenges such as securing funding for major redevelopment initiatives, notably MAHAPREIT. In real estate, NBCC expects to generate INR 325-350 crore from sales in FY26, mainly from Lucknow and Bhubaneswar inventories. New projects, including 37D and Jaipur land parcels, are also advancing to contribute to future revenue and profit growth.

"Definitely, EBITDA will be more than 6% to 6.5%. We are targeting 6% to 6.5%."
"The EBITDA 8% to 9%."
"In the year '27-'28, the bottom line will be around INR2,000 crores. So top line is INR25,000 crores around, our PAT will be somewhere 7% to 8%."

NBCC's earnings call outlines an assertive growth strategy, targeting significant revenue increases and enhanced profitability through strategic project execution. The company is actively expanding its order book, particularly in redevelopment, while addressing operational challenges like funding. This forward-looking commentary positions NBCC for a period of sustained financial and operational strength, promising value creation for its stakeholders.

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