NCC share price drops 10%, hits over 2-year low on NHAI debarment order
NCC share price declined 9.9 per cent to ₹135, the lowest level since July 14, 2023, on the National Stock Exchange (NSE)
 "NCC share price drops 10%, hits over 2-year low on NHAI debarment order")
NCC share price today
Shares of NCC experienced heavy selling pressure on Thursday after the National Highways Authority of India (NHAI) debarred the company from participating its in orders for two years. The scrip declined 9.9 per cent to ₹135, the lowest level since July 14, 2023, on the National Stock Exchange (NSE).
As of 10:05 AM, NCC share price pared most losses to trade 0.8 per cent down at ₹148.7 per share, as compared to a 0.12 per cent decline in the Nifty 50 index. The counter has seen a trade of 15.4 million shares, so far, on the NSE.
In the last 12 months, the NCC share price fell 21.4 per cent, as compared to a 12.5 per cent advance in the Nifty 50 index. READ STOCK MARKET UPDATES TODAY LIVE
Why did NCC share price fall today?
NCC share price declined sharply on Thursday as NHAI debarred the company and its step-down subsidiary, OB Infrastructure Limited from participating in the tender process for a period of two years, with effect from February 17, 2026.
Morover, the companies cannot participate, even acting as concessionaire, contractor, engineering, procurement, construction (EPC) contractor, operation and maintenance (O&M) contractor, O&M agency, or consortium member, according to an exchange filing.
NCC, however, said it is reviewing the debarment order and will take appropriate action.
Why did NHAI debar NCC Ltd?
The debarment order stems from delays in a project executed by OB Infrastructure involving certain sections of NH-25 and NH-2 (new NH-27) in Uttar Pradesh. The project followed a build-operate-transfer (BOT) annuity model, and covered the comprehensive lifecycle of a highway, including design, engineering, financing, and long-term operation and maintenance, NCC said in the exchange filing.
OB Infrastructure had constructed and maintained the project as per the terms of the concession agreement dated April 27, 2006, NCC said. However, delays occurred due to various breaches by the NHAI, including land hand over.
After this, the step-down subsidiary had initiated an arbitration proceeding against NHAI and won a favourable award in November 2024. At present, NHAI has challenged the award in the Delhi High Court. ALSO READ | Kwality Wall's shares trade 30% lower vs discovered price: buy or avoid?
There are more disputes between OB Infrastructure and NHAI with respect to the aforementioned project execution. The step-down subsidiary further initiated an arbitration proceeding against NHAI in September 2025. During the pendency of the arbitral proceedings, NHAI initiated the present debarment order, NCC said.
OB Infrastructure contended that the debarment order has directly violated the principles of natural justice, because it was issued after the concession period without granting the company a fair hearing. Meanwhile, the company said that there is no impact of the debarment from NHAI on its existing order book or ongoing projects. "The impact, if any, on future tenders will depend on business opportunities arising during the debarment period," the company said.
Analyst view
NHAI's decision to debar NCC from participating in fresh tenders is sentimentally negative in the near term, especially for an EPC-focused player where order inflows are the lifeblood of growth visibility, said Harshal Dasani, business head, INVAsset PMS.
Markets, typically, react sharply to such regulatory or client-related developments because they introduce uncertainty around revenue growth and bidding momentum, he said.
For an infrastructure company, execution depends heavily on maintaining a healthy order book pipeline. If participation in new NHAI tenders is restricted for a defined period, it could slow incremental order inflows in the roads segment, which has traditionally been a meaningful contributor, he said.
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