NCC’s 9.38% operating margin trails 61 Industrials peers
Management said order-book execution and project mobilisation should drive revenue growth; NCC Urban has 2.78 msf under construction.
Filed 06 Aug 2026, 17:05 IST · after market close · NCC Ltd (NCC)
Key takeaways
- NCC’s consolidated operating margin was 9.38%, 4.98 percentage points below the 61-company Industrials median.
- Interest expense of Rs 198.02 cr remained a major earnings charge against profit before tax of Rs 311.64 cr.
- Management said revenue growth is expected to come from existing-order-book execution and project mobilisation, while NCC Urban has 2.78 msf under construction.
Price around the results
Q1 earnings carried a high financing burden
NCC reported consolidated net profit of Rs 228.9 cr, but interest expense of Rs 198.02 cr was a major charge before tax. Other income was Rs 33.85 cr against profit before tax of Rs 311.64 cr, indicating that reported profit was not primarily supported by non-operating income. The tax rate was 26.55%.
Operating margin sits below the Industrials peer set
NCC’s 9.38% operating margin was 4.98 percentage points below the 14.36% median for 61 Industrials companies that had reported the quarter. The company ranked 14th from the bottom on this measure. There is no quarter-on-quarter or year-on-year comparison in this update, so the direction of margin across quarters cannot be assessed.
Order-book execution is management’s revenue lever
Management said expected revenue growth would come from systematic execution of the existing order book and project mobilisation across businesses. The company said NCC Urban has 2.78 msf under construction across five projects and a 3.72 msf pipeline across six projects. Management also reported that revenue from the Pachhwara coal-mining asset declined -4.00% year on year in Q1FY27.
Results were filed after market close
NCC filed the consolidated Q1FY27 results at 17:05 IST on 6 August 2026, after market close. The immediate post-results market response is therefore not part of this update.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹5,812 cr |
| Other income | ₹34 cr |
| Expenses | ₹5,267 cr |
| Operating profit | ₹545 cr |
| Operating margin (%) | 9.38% |
| Interest | ₹198 cr |
| Depreciation | ₹69 cr |
| Profit before tax | ₹312 cr |
| Tax | ₹83 cr |
| Net profit | ₹229 cr |
| EPS (₹) | ₹3.45 |
Operating margin of 9.38% compares with a Industrials sector median of 14.36% across 61 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.
Guidance & outlook
- Revenue growth is expected to come from systematic execution of the existing order book and project mobilisation.
Expansion
- NCC Urban has 2.78 msf under construction across five projects.
- NCC Urban has a pipeline of 3.72 msf across six projects.
Problems & risks
- The Pachhwara coal mining asset's revenue declined 4% year on year in Q1 FY27.
What to watch
- Operating margin relative to the current 9.38% level and the 14.36% Industrials peer median.
- Execution and mobilisation disclosures against the 2.78 msf currently under construction and the 3.72 msf pipeline.
- Whether Pachhwara’s revenue moves from the reported -4.00% year-on-year change.