NBCC’s margin improves year on year but slips sequentially
Revenue growth outpaced costs year on year, but expenses grew slightly faster sequentially; other income still supplied 21.43% of pre-tax profit.
Filed 05 Nov 2026, 15:11 IST · NBCC (India) Ltd (NBCC)
Key takeaways
- Consolidated operating margin improved 3.17 percentage points year on year to 6.63%, as revenue growth of 16.69% outpaced expense growth of 12.85%.
- Sequential momentum was mixed: revenue rose 50.29%, but expenses grew 50.65%, narrowing operating margin by 0.23 percentage points.
- Other income contributed 21.43% of pre-tax profit, while the 2.12-percentage-point rise in the tax rate limited net-profit growth to 33.93% year on year.
Price around the results
Revenue recovery continued in Q2FY27
NBCC reported consolidated revenue growth of 16.69% year on year and 50.29% sequentially, taking operating profit growth to 123.56% and 45.35%, respectively. The year-on-year improvement was driven by revenue growing faster than expenses, while the sequential increase was largely absorbed by a similar 50.65% rise in expenses. Management said the company was awarded projects worth Rs 1,185 cr during Q2FY27.
Sequential cost growth checked the margin gain
Operating margin expanded 3.17 percentage points year on year because expenses grew 12.85%, below revenue growth of 16.69%. Sequentially, costs grew slightly faster than revenue, so margin narrowed by 0.23 percentage points. Other income accounted for 21.43% of pre-tax profit, making reported earnings less dependent on operating profit alone.
Margin is above last year but below the sector median
The operating margin trend improved from 3.46% in Q2FY26 to 3.76% in Q3FY26, 6.30% in Q4FY26 and 6.86% in Q1FY27 before easing to 6.63% in Q2FY27. This is the first sequential margin decline after three quarters of improvement, rather than a renewed multi-quarter slide. Among 178 Industrials peers that had reported the same quarter, the sector median operating margin was 11.50%, placing NBCC 4.87 percentage points below it.
The stock’s reaction was larger than its usual results move
NBCC shares rose 3.33% on the results date, with volume at 8.51 times the reference level. The move was above the stock’s median absolute reaction of 1.76% across its last eight results, although its history was evenly split between four advances and four declines.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,396 cr | ₹2,260 cr | +50.29% | +16.69% |
| Other income | ₹60 cr | ₹61 cr | -1.58% | -43.56% |
| Expenses | ₹3,171 cr | ₹2,105 cr | +50.65% | +12.85% |
| Operating profit | ₹225 cr | ₹155 cr | +45.35% | +123.56% |
| Operating margin (%) | 6.63% | 6.86% | — | — |
| Interest | ₹0 cr | ₹0 cr | — | +100.00% |
| Depreciation | ₹4 cr | ₹4 cr | +0.85% | +16.72% |
| Profit before tax | ₹282 cr | ₹213 cr | +32.54% | +37.74% |
| Tax | ₹72 cr | ₹55 cr | +31.76% | +50.19% |
| Net profit | ₹210 cr | ₹158 cr | +32.81% | +33.93% |
| EPS (₹) | ₹0.76 | ₹0.57 | +33.33% | +33.33% |
Operating margin of 6.63% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.33% | +0.93% |
Volume on the results session was 8.51× its 20-day average.
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 awarded projects worth Rs. 1185 crore during Q2 FY27.
What to watch
- Whether operating margin holds above 6.63% after the sequential decline of 0.23 percentage points.
- Whether expense growth remains below revenue growth, as it did year on year at 12.85% versus 16.69%.
- How the next order-award update compares with the Rs 1,185 cr awarded in Q2FY27.