NBCC profit jumps 38.78% despite a 1.78% revenue decline
The sequential margin recovery was supported by faster revenue growth than expense growth, but other income contributed 17.22% of pre-tax profit.
Filed 25 May 2026, 13:35 IST · NBCC (India) Ltd (NBCC)
Key takeaways
- Consolidated net profit rose 38.78% year on year even as revenue fell 1.78%, helped by a swing in other income and a 0.71-percentage-point lower tax rate.
- Operating margin recovered 2.54 percentage points sequentially to 6.30% as revenue growth of 50.87% outpaced expense growth of 46.88%.
- NBCC's 6.30% operating margin was 9.36 percentage points below the 15.66% median for 71 reported Industrials peers.
Price around the results
Profit growth came without revenue growth
Consolidated revenue declined 1.78% year on year and operating profit fell 0.98%, but net profit increased 38.78%. The main support came from other income of Rs 58.94 cr, versus negative other income of Rs -38.07 cr a year earlier, while the tax rate fell 0.71 percentage points. Sequentially, revenue rose 50.87% and operating profit increased 152.97%, but net profit grew a more modest 28.54%.
Margin recovered, but remains well below peers
Operating margin expanded 2.54 percentage points sequentially because expenses grew 46.88%, below the 50.87% increase in revenue. Year on year, expenses contracted 1.84% against a 1.78% revenue decline, leaving the margin broadly stable with a 0.05-percentage-point improvement. Other income accounted for 17.22% of pre-tax profit, so reported earnings quality was partly supported outside operations. NBCC's 6.30% margin ranked fourth from the bottom among the 71 Industrials companies that had reported, against a sector median of 15.66%.
Q4 reversed the earlier margin slide
The margin had fallen from 6.25% in Q4FY25 to 4.61% in Q1FY26 and 3.46% in Q2FY26 before recovering to 3.76% in Q3FY26 and 6.30% in Q4FY26. This was a fourth-quarter recovery rather than a continuation of the decline, but the latest margin is only 0.05 percentage points above last year's Q4 level. Management said NBCC is expanding its redevelopment business beyond Delhi and is also pursuing projects in Dubai, the UAE, Seychelles and Australia.
The stock move was close to its usual results reaction
The stock gained 2.08% on the results day, with a 0.91% opening gap and volume at 2.88 times its reference level. That reaction was somewhat above NBCC's median absolute move of 1.76% after its last eight results, during which four sessions were positive and four negative. The gain extended to 9.80% after five sessions and 15.10% after 15 sessions, before returning to -0.04% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,560 cr | ₹3,022 cr | +50.87% | -1.78% |
| Other income | ₹59 cr | ₹152 cr | -61.33% | — |
| Expenses | ₹4,273 cr | ₹2,909 cr | +46.88% | -1.84% |
| Operating profit | ₹287 cr | ₹114 cr | +152.97% | -0.98% |
| Operating margin (%) | 6.30% | 3.76% | — | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% | +0.00% |
| Depreciation | ₹4 cr | ₹3 cr | +24.68% | +31.42% |
| Profit before tax | ₹342 cr | ₹263 cr | +30.24% | +37.44% |
| Tax | ₹89 cr | ₹68 cr | +30.75% | +33.75% |
| Net profit | ₹254 cr | ₹197 cr | +28.54% | +38.78% |
| EPS (₹) | ₹0.89 | ₹0.71 | +25.35% | +36.92% |
Operating margin of 6.30% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.08% | +0.76% |
| Next session | +0.77% | — |
| 5 sessions | +9.80% | +10.79% |
| 15 sessions | +15.10% | — |
| 30 sessions | -0.04% | — |
Volume on the results session was 2.88× 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.
Guidance & outlook
- NBCC plans to provide quality, affordable housing in Dubai for the Indian diaspora and other residents.
- NBCC aims to develop PSU land parcels to meet current demand and future expansion requirements for cash flows.
- NBCC lists conversion of its order book into running projects as a strategic action.
- NBCC plans to fast-track execution of GPRA and Amrapali projects.
Expansion
- NBCC is expanding its redevelopment business from Delhi to other metropolitan cities and states.
- NBCC purchased land in Dubai Mainland to develop a mixed-use project on 14,776 sq ft.
- NBCC plans to jointly construct residential, hospitality and mixed-use projects across the UAE with Pantheon Elysee.
New orders
- BCD Global appointed NBCC as project management consultant for its debut residential development in Dubai’s Warsan district.
- NBCC was engaged as project management consultant for large-scale social housing and community infrastructure works in Seychelles.
New initiatives
- NBCC has extended its self-sustainable redevelopment model to sick PSUs to help restore profitability.
- NBCC signed a framework MoU with Goldfields Australia to co-develop infrastructure and real estate initiatives across Australia.
Problems & risks
- NBCC says its redevelopment model can help sick PSUs avoid high borrowing interest and return to profitability.
- Stalled real estate projects are listed among NBCC’s domestic opportunities.
What to watch
- Whether operating margin holds above the Q4FY26 level of 6.30%.
- Whether expense growth remains below revenue growth after the sequential gap of 46.88% versus 50.87%.
- Whether other income stays near or below Rs 58.94 cr and its 17.22% share of pre-tax profit.