 "NCC gains 4% on ₹2,063 cr Gauhati Medical College expansion order")
NCC shares gained 4.2 per cent on the BSE, logging an intra-day high at ₹180.65 per share. The buying on the counter came after the company received a letter of acceptance (LoA) from the Public Works (Health & Education) Department, Assam.
At 9:38 AM, NCC’s share price was trading 1.07 per cent higher at ₹175.15 per share on BSE. In comparison, the BSE Sensex was up 0.49 per cent at 85,001.36.
Under the contract, NCC is expected to expand and modernise Gauhati Medical College & Hospital, situated in Guwahati, Assam. The construction will be done in 42 Months, inclusing six months for demolition, planning, designing and engineering and 36 months for execution. The contract is valued at ₹2,062.71 crore. ALSO READ | New Tata Sierra seen powering PV push, but brokerages split on stock
“We are pleased to inform that, the company has received a Letter of Acceptance dated November 21, 2025, from Public Works (Health & Education) Department, Assam for expansion and modernisation of Gauhati Medical College & Hospital, Guwahati, Assam State,” the filing read.
Upon completion, the company will be responsible for the comprehensive operation and maintenance (O&M) of civil structures and services for a period of five years.
That apart, in Q2, NCC reported a net profit of ₹154.74 crore, as compared to ₹160.75 crore a year ago. The company’s revenue from operations stood at ₹4,543 crore, as against ₹5,195.94 crore a year ago.
The order book in the September quarter stood at ₹71,957 crore, up 37 per cent Y-o-Y. Order inflow also grew 31 per cent Y-o-Y to ₹6,223 crore.
Post Q2, Nuvama Institutional Equities maintained ‘Buy’, reducing the target to ₹260 per share from ₹280 per share. ALSO READ | Nelco share price surge 6% in trade on Nov 26; why is stock rallying today?
According to the brokerage, NCC’s top line inched down 16 per cent Y-o-Y while Earnings before interest, tax, depreciation and amortisation (Ebitda) margin fell 160 basis points (bps) Y-o-Y to 7.4 per cent in Q2FY26. Execution was impacted adversely by:
- A protracted monsoon season
- Delay in commencement of work on certain projects due to approval issues
- A stretched payment cycle in JJM projects— over the past six quarters, execution of JJM projects has been sluggish across the industry.
Due to these issues, the company has withdrawn its guidance for the full year (it had earlier guided for 10 per cent Y-o-Y revenue growth in FY26E with an Ebitda margin of 9 per cent.