NBCC Q1 FY27 Results (NSE: NBCC)
Signal: Margin expansion
The read
The operating inflection is positive: standalone operating profit rose 32.1% YoY versus 10.0% revenue growth and margin expanded 185bps to 11.10%, led by PMC and Real Estate; however, EPC revenue fell 94.5% into a ₹608.12 lakh loss, while project-asset, litigation and governance issues keep earnings quality and execution risk elevated.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,823.04 Cr | +10.0% | -53.4% |
| EBIT | ₹202.27 Cr | +32.1% | |
| Net profit | ₹150.65 Cr | +32.1% | |
| EPS | ₹0.56 | +33.3% | |
| EBIT margin | 11.10% |
P&L walk
Standalone operating profit before exceptional items and tax rose 32.1% YoY to ₹20,227.15 lakh on 10.0% revenue growth, with total expenses growing 6.8% and employee costs growing 6.5%; the improvement was led by PMC while EPC moved into loss.
Segments
PMC drove the quarter with revenue of ₹1,75,149.67 lakh, up 12.1% YoY, and segment result of ₹18,885.71 lakh, up 27.8%; Real Estate turned profitable at ₹2,568.26 lakh from ₹479.63 lakh, while EPC collapsed to ₹396.19 lakh revenue and a ₹608.12 lakh loss from ₹7,150.56 lakh revenue and ₹473.70 lakh profit.
Key positives
- Revenue from operations rose 10.0% YoY to ₹1,82,303.58 lakh, led by PMC revenue growth of 12.1% to ₹1,75,149.67 lakh.
- Operating profit rose 32.1% YoY to ₹20,227.15 lakh and operating margin expanded 185bps to 11.10%, with total expenses growing 6.8%, 3.2 percentage points below revenue growth.
- Real Estate segment result improved to ₹2,568.26 lakh from ₹479.63 lakh YoY and turned positive from a ₹582.17 lakh sequential loss.
- Finance cost remained negligible at ₹0.15 lakh, supporting a debt-free balance-sheet profile.
Key concerns
- EPC revenue fell 94.5% YoY to ₹396.19 lakh and the segment reported a ₹608.12 lakh loss versus a ₹473.70 lakh profit a year earlier.
- PMC remains highly concentrated, contributing ₹1,75,149.67 lakh of the ₹1,82,303.58 lakh operating revenue, or approximately 96%.
- Other income of ₹4,495.25 lakh represented 22.2% of profit before tax, so reported earnings are not entirely operating-generated.
- Kochi real-estate inventory of ₹8,700.91 lakh remains unsold pending environmental clearance and statutory approvals.
Research and educational content only. Not investment advice.