SYNOPSIS: Nuvama cut NBCC’s target price by 5 percent to Rs.139 but maintained a ‘buy’ rating, citing strong order book strength. However, housing slowdown concerns led to EPS cuts for FY26-FY28 estimates.
During Wednesday’s trading session, shares of a Navratna Enterprise under the Ministry of Housing and Urban Affairs and one of the largest construction companies in India, were in focus on the stock exchanges, after brokerage firm Nuvama cut the stock post the financial results for Q3 FY26.
With a market cap of Rs. 26,600.4 crores, shares of NBCC (India) Limited were trading flat at Rs. 98.52 on BSE, compared to its previous closing price of Rs. 98.47. The stock has delivered positive returns of around 27 percent in the last one year, but has fallen by nearly 4 percent in one month.
Brokerage Target & Outlook
NBCC has received a target price cut of around 5 percent from Nuvama following its Q3 FY26 results. While the brokerage has retained its ‘buy’ rating, it reduced the target price from Rs. 146 to Rs. 139 per share. Despite the revision, the new target implies a potential upside of around 41 percent from the previous closing price of Rs. 98.47.
The brokerage clarified that the rating remains unchanged, but with a target cut, as it rolled forward valuations to Q3 FY28 estimates, valuing the stock at 45 times the estimated EPS. It also highlighted that higher other income supported adjusted net profit rising 11 percent YoY to Rs. 130 crore.
NBCC’s order book remains robust at around Rs. 1.3 lakh crore, translating into a strong book-to-bill ratio of 9.8x. Out of this, projects worth Rs. 30,500 crore are currently under execution. During Q3 alone, the company secured fresh orders worth Rs. 3,300 crore.
However, Nuvama noted that nearly 60 percent of the total order book comprises ‘self-revenue-generating projects’. In such projects, execution pace is closely linked to the speed of real estate monetisation, making sales traction a critical factor to monitor.
Nuvama highlighted that a slowdown in housing volumes has raised concerns regarding execution momentum in self-revenue-generating projects. As a result, it has trimmed its EPS estimates for NBCC by 7 percent for FY26, 13 percent for FY27, and 12 percent for FY28.
Financial Performance Q3 FY26
For Q3 FY26, the company posted consolidated revenue from operations of Rs. 3,022.4 crores, reflecting a sequential growth of around 4 percent QoQ compared to Rs. 2,914 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue increased by nearly 8 percent from Rs. 2,809 crores recorded in Q3 FY25.
Meanwhile, the net profit stood at Rs. 197 crore, indicating an increase of about 26 percent QoQ from Rs. 156.7 crores in Q2 FY26, while on a year-on-year basis, the profit moved up by more than 38 percent from Rs. 142.4 crores reported in Q3 FY25.
Revenue Mix, Order Book and More
For the quarter ended December 2025, Project Management Consultancy (PMC) remained the largest contributor, generating Rs. 2,912.84 crore, accounting for around 96 percent of total revenue. This represents a growth of about 14 percent YoY, compared to Rs. 2,561.2 crore in Q3 FY25.
Real Estate segment contributed Rs. 26.6 crore, forming nearly 1 percent of total revenue, and recorded a robust 218 percent YoY increase from Rs. 8.3 crore in the year-ago quarter.
Meanwhile, the EPC vertical reported revenue of Rs. 76 crore, contributing around 2.5 percent to overall revenue, but witnessed a decline of about 66 percent YoY growth from Rs. 202.6 crore in December 2024.
Further, as of December 2025, the company’s consolidated order book stood at around Rs. 1,26,790 crores, down by around 1.2 percent from Rs. 1,28,381 crores. Of this, NBCC’s order book stood at nearly Rs. 1,12,640 crore, while its subsidiaries HSCC, HSCL, and NSL contributed Rs. 7,827 crore, Rs. 6,016 crore, and Rs. 307 crore, respectively.
NBCC (India) Limited is a Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs. It operates into three major segments, namely Project Management Consultancy (PMC), Real Estate and Engineering Procurement & Construction (EMC).
Under the PMC segment, the company undertakes institutional, housing, and industrial projects, including the redevelopment of government colonies and vacant plots, as well as infrastructure works such as roads, hospitals, medical colleges, offices, airports, and bridges, both in India and overseas.
The EPC division focuses on civil and structural works for the power sector, including chimneys and cooling towers. Meanwhile, the Real Estate Development segment encompasses the development of commercial and corporate office buildings, along with townships and residential apartments.
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