NBCC profit rises despite lower revenue as operating margin improves
Costs declined faster than revenue, lifting operating margin to its highest level in the five-quarter trend, though it remained below the sector median.
Filed 11 Aug 2026, 15:15 IST · NBCC (India) Ltd (NBCC)
Key takeaways
- Consolidated net profit rose 17.02% year on year despite a 5.51% revenue decline.
- Operating margin improved 2.25 percentage points year on year as expenses fell 7.73%, faster than revenue.
- Other income contributed 28.86% of profit before tax, making reported profit quality an important consideration.
Price around the results
Revenue fell, but profit grew year on year
NBCC reported consolidated revenue growth of -5.51% year on year, while operating profit increased 40.63%. The sharper 7.73% fall in expenses allowed net profit to rise 17.02% despite lower revenue. Sequentially, revenue and net profit declined 50.45% and 37.67%, respectively, reflecting the comparison with Q4FY26.
Expense control lifted the operating margin
Expenses declined faster than revenue year on year, widening operating margin by 2.25 percentage points; sequentially, the margin improved 0.56 percentage points. Operating margin has now recovered from 3.46% in Q2FY26 to 6.86%, its highest level in the five-quarter trend. The margin still trailed the 13.93% median for 112 Industrials peers that had reported, leaving NBCC 7.07 percentage points below the sector median and 18th from the bottom.
Other income made a sizable contribution to pre-tax profit
Other income accounted for 28.86% of profit before tax, so the 17.02% growth in net profit was not generated entirely by operations. The tax rate was broadly stable year on year, rising 0.16 percentage points, while it fell 0.2 percentage points sequentially. Interest expense was effectively absent in the quarter, compared with Rs 0.01 cr in both comparison periods.
New Kashmir university order adds to the execution pipeline
Management said NBCC was awarded a Rs 283.68 cr project for Phase 1 construction of the Central University of Kashmir at the Tulmulla Campus in Ganderbal. The order provides a specific addition to the project pipeline alongside the quarter's lower revenue base. The results were filed before market close, and no post-result market reaction is available yet; across the last eight result reactions, the stock rose five times and fell three, with a median absolute move of 1.76%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,260 cr | ₹4,560 cr | -50.45% | -5.51% |
| Other income | ₹61 cr | ₹59 cr | +4.19% | -17.36% |
| Expenses | ₹2,105 cr | ₹4,273 cr | -50.74% | -7.73% |
| Operating profit | ₹155 cr | ₹287 cr | -46.07% | +40.63% |
| Operating margin (%) | 6.86% | 6.30% | — | — |
| Interest | ₹0 cr | ₹0 cr | -100.00% | -100.00% |
| Depreciation | ₹4 cr | ₹4 cr | -9.25% | +17.28% |
| Profit before tax | ₹213 cr | ₹342 cr | -37.83% | +17.27% |
| Tax | ₹55 cr | ₹89 cr | -38.30% | +18.01% |
| Net profit | ₹158 cr | ₹254 cr | -37.67% | +17.02% |
| EPS (₹) | ₹0.57 | ₹0.89 | -35.96% | +16.33% |
Operating margin of 6.86% compares with a Industrials sector median of 13.93% across 112 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New orders
- NBCC was awarded a ₹283.68 crore project to construct the Central University of Kashmir at Tulmulla Campus, Ganderbal.
What to watch
- Whether consolidated operating margin holds above 6.86%.
- Whether other income remains a material contributor to profit before tax after accounting for 28.86% this quarter.
- Progress on execution of the Rs 283.68 cr Central University of Kashmir project.