NCC's 8.83% operating margin trails Industrials median by 6.79 points
The consolidated Q4 filing came after market close; management cited funding-cycle stress while pointing to a 4x book-to-bill.
Filed 01 Sep 2026, 18:11 IST · after market close · NCC Ltd (NCC)
Key takeaways
- NCC's consolidated Q4 operating margin was 8.83%, 6.79 percentage points below the 72-peer Industrials median.
- Interest of Rs 213.47 cr and depreciation of Rs 64.60 cr narrowed the gap between operating profit of Rs 550.41 cr and profit before tax of Rs 293.59 cr, even after Rs 21.25 cr of other income.
- Management said its order book provides multi-year visibility, citing a 4x book-to-bill, while funding-cycle stress moderated FY26 revenue.
Price around the results
Q4 operating margin ranks near the bottom of Industrials peers
NCC reported consolidated Q4 revenue of Rs 6,232.71 cr and operating profit of Rs 550.41 cr, translating into an 8.83% operating margin. That was 6.79 percentage points below the 15.62% median for 72 Industrials companies that had reported, placing NCC 11th from the bottom.
Interest remained the main drag below operating profit
The profit bridge was burdened by Rs 213.47 cr of interest and Rs 64.60 cr of depreciation, while Rs 21.25 cr of other income only partly offset those charges. Other income was not the main profit driver, at a fraction of the Rs 293.59 cr profit before tax. The reported tax rate was 26.17%.
Management links FY26 moderation to funding-cycle stress
Management said funding-cycle stress in water and selected state-funded segments contributed to FY26 revenue moderation. It also said the order book provides multi-year visibility, with the presentation citing a 4x book-to-bill. Management said standalone gross debt rose versus FY25 to Rs 1,484 cr because of peak working-capital needs through Q1-Q3 FY26.
The filing came after market close
NCC filed the consolidated results after market close on 1 September 2026. The immediate share-price response therefore belongs to the next trading session.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 |
|---|---|
| Revenue | ₹6,233 cr |
| Other income | ₹21 cr |
| Expenses | ₹5,682 cr |
| Operating profit | ₹550 cr |
| Operating margin (%) | 8.83% |
| Interest | ₹213 cr |
| Depreciation | ₹65 cr |
| Profit before tax | ₹294 cr |
| Tax | ₹77 cr |
| Net profit | ₹217 cr |
| EPS (₹) | ₹3.28 |
Operating margin of 8.83% compares with a Industrials sector median of 15.62% across 72 peers that have reported Q4FY26.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company says its order book provides multi-year visibility.
New initiatives
- The company has structured training, diversity and inclusion initiatives, and employee engagement programmes.
Problems & risks
- Funding-cycle stress in water and selected state-funded segments contributed to FY26 revenue moderation.
- Standalone gross debt rose because of peak working-capital needs through Q1-Q3 FY26.
What to watch
- Whether consolidated operating margin moves up from 8.83% toward the 15.62% Industrials peer median.
- Whether standalone gross debt moves from Rs 1,484 cr after the peak working-capital period through Q1-Q3 FY26.
- Whether the order-book book-to-bill remains at 4x, supporting the multi-year visibility management described.