NCC's revenue scales up, but sequential margin slips as costs outpace growth
Year-on-year profit growth was tempered by higher interest and tax rates, while operating margin remained below the Industrials peer median.
Filed 05 Nov 2026, 17:40 IST · after market close · NCC Ltd (NCC)
Key takeaways
- Consolidated revenue grew 32.39% year on year, but net profit rose only 18.83% as interest costs increased 22.99% and the tax rate rose 6.52 percentage points.
- Sequentially, expenses grew 4.17% against 3.49% revenue growth, narrowing operating margin by 0.59 percentage points to 8.79%.
- NCC's 8.79% operating margin was 2.71 percentage points below the 11.50% median for 178 reported Industrials peers.
Price around the results
Revenue growth remains strong, but quarterly profit momentum turns lower
NCC's consolidated revenue grew 32.39% year on year to Rs 6,014.67 cr, with expenses rising slightly slower at 32.21%; operating profit therefore increased 34.36%. Sequentially, revenue grew 3.49%, but operating profit fell 3.06%, and net profit declined 13.13% to Rs 198.84 cr.
Cost growth and financing charges weigh on the quarter
Sequential expenses grew faster than revenue, reducing operating margin by 0.59 percentage points. Interest expense also increased 6.72% sequentially and 22.99% year on year, adding pressure below the operating line. The 26.31% tax rate was 6.52 percentage points higher than a year earlier, which limited the conversion of pre-tax profit growth into net profit growth.
Margin is below peers after a Q1 peak
Operating margin rose 0.13 percentage points year on year, but it fell from 9.38% in Q1FY27 to 8.79% in Q2FY27. The current margin was 2.71 percentage points below the 11.50% median among 178 Industrials peers that had reported the quarter. Other income represented 10.33% of pre-tax profit, making it a meaningful contributor to reported earnings quality.
No immediate market response after the post-close filing
The results were filed after market close, so there is no reported reaction yet. Across the stock's last eight result reactions, it rose three times and fell five times, with a median absolute move of 2.58%, indicating that past responses have more often been negative than positive but generally contained in size.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,015 cr | ₹5,812 cr | +3.49% | +32.39% |
| Other income | ₹28 cr | ₹34 cr | -17.67% | -36.72% |
| Expenses | ₹5,486 cr | ₹5,267 cr | +4.17% | +32.21% |
| Operating profit | ₹528 cr | ₹545 cr | -3.06% | +34.36% |
| Operating margin (%) | 8.79% | 9.38% | — | — |
| Interest | ₹211 cr | ₹198 cr | +6.72% | +22.99% |
| Depreciation | ₹75 cr | ₹69 cr | +8.43% | +32.05% |
| Profit before tax | ₹270 cr | ₹312 cr | -13.41% | +29.35% |
| Tax | ₹71 cr | ₹83 cr | -14.18% | +71.98% |
| Net profit | ₹199 cr | ₹229 cr | -13.13% | +18.83% |
| EPS (₹) | ₹2.93 | ₹3.45 | -15.07% | +19.11% |
Operating margin of 8.79% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 8.79% after falling from 9.38% in Q1FY27.
- Whether expenses grow more slowly than the 3.49% sequential revenue increase.
- Whether interest expense moves from Rs 211.33 cr and the tax rate from 26.31%.