NCC H1FY27 Results (NSE: NCC)
Signal: Margin expansion
The read
The H1 inflection is revenue and operating-profit led: consolidated revenue reached ₹11826.50 crore, +21.6% YoY, and operating profit rose +41.0% with margin up 140bps to 8.0%, but PAT grew only +15.2% to ₹427.74 crore and operating cash flow was negative at ₹1142.00 crore, so execution recovery has not yet translated into clean cash earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹11,826.5 Cr | +21.6% | N/A |
| EBIT | ₹952.15 Cr | +41.0% | |
| Net profit | ₹427.74 Cr | +15.2% | |
| EPS | ₹6.38 | +15.6% | |
| EBIT margin | 8.0% |
P&L walk
H1 revenue increased to ₹11826.50 crore, +21.6% YoY, and operating profit rose to ₹952.15 crore, +41.0% YoY, but consolidated PAT of ₹427.74 crore grew more slowly at +15.2% because finance costs, tax and minority interests absorbed part of the operating improvement.
Segments
Construction drove the recovery with H1 revenue of ₹11729.90 crore, +22.8% YoY, and segment result of ₹985.83 crore, while Others dragged with a ₹33.67 crore loss.
Key positives
- Consolidated revenue increased to ₹11826.50 crore, +21.6% YoY, reversing the recent quarterly revenue contraction visible through Q3FY26.
- Operating profit rose to ₹952.15 crore, +41.0% YoY, faster than revenue growth of +21.6%, expanding the operating margin to 8.0% from 6.6%.
- Construction segment revenue grew to ₹11729.90 crore, +22.8% YoY, while segment result reached ₹985.83 crore, +69.3% YoY.
- EPS rose to ₹6.38 from ₹5.52, +15.6% YoY, closely tracking attributable PAT growth of +15.7%.
Key concerns
- Consolidated PAT of ₹427.74 crore grew only +15.2% YoY versus operating profit growth of +41.0%, indicating below-operating-line leakage.
- Operating cash flow was negative at ₹1142.00 crore despite ₹427.74 crore of reported PAT, highlighting working-capital pressure and earnings-to-cash risk.
- The Others segment reported a ₹33.67 crore H1 loss, offsetting part of the Construction segment's ₹985.83 crore result.
- Employee costs rose to ₹235.12 crore, +26.3% YoY, faster than revenue growth of +21.6%.
Research and educational content only. Not investment advice.