Investors are likely to closely monitor shares of NCC Limited, one of India's leading diversified construction firms, during Wednesday's trading session following the company's announcement of a significant new contract win worth over ₹2,000 crore.
Major Infrastructure Project in Assam
In a regulatory filing submitted after market hours on Tuesday, NCC informed stock exchanges that it has secured a substantial order valued at ₹2,062 crore from the Public Works (Health & Education) Department of Assam. The contract involves the expansion and modernization of Gauhati Medical College & Hospital, a crucial healthcare infrastructure project in Northeast India.
The company confirmed receiving the formal Letter of Acceptance dated November 21, 2025, for this prestigious assignment. NCC emphasized that the awarding entity has no connections with the company's promoters or promoter groups, clarifying that this transaction does not qualify as a related-party arrangement.
Financial Performance Analysis
This major order win comes at a crucial time for NCC, which reported mixed financial results for the September quarter (Q2FY26). The construction giant posted a net profit of ₹167 crore, representing a 5% decline compared to the ₹175 crore recorded during the same period last year.
The company's revenue witnessed a more significant contraction, falling by 12.6% year-on-year to ₹4,543 crore. EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) also decreased by 11.5% to ₹394 crore, though the EBITDA margin showed slight improvement, expanding by 20 basis points to 8.7% from 8.5% in the corresponding quarter of the previous fiscal year.
Despite these challenges, NCC maintains a robust order book position, with the total value standing at ₹71,957 crore as of September 30, 2025. The order book composition reveals diversified strength across sectors:
- Buildings segment: 31%
- Transportation projects: 24%
- Electrical (T&D): 21%
- Water & Railways: 11%
The company management has expressed commitment to improving cash flows, accelerating project execution, and optimizing leverage as project activities normalize in the second half of the fiscal year.
Shareholder Profile and Stock Performance
According to latest available shareholding data from Trendlyne, as of June 2024 quarter, prominent investor Rekha Jhunjhunwala holds a significant 10.63% stake in NCC. The widow of legendary investor Rakesh Jhunjhunwala continues to maintain substantial exposure to the construction sector through this investment.
Retail investors demonstrate strong confidence in the company, with approximately 5.45 lakh individual shareholders collectively owning 25.94% of the company. These retail investors are defined as those holding authorized share capital up to ₹2 lakh.
However, NCC shares have faced substantial pressure in recent months, with the stock price declining by 52% from its July 2024 peak of ₹364.50 per share. The year 2025 has been particularly challenging, with the stock falling 37% year-to-date. If this weak momentum persists, 2025 could mark the company's first annual decline in five years and the most significant drop since 2019.
The new order from Assam represents a potential catalyst for NCC shares, providing visibility for future revenue streams and demonstrating the company's ability to secure large-scale government infrastructure projects despite challenging market conditions.
