NBCC — earnings call

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Prepared remarks

(INDIA) LIMITED · DR. SUMAN KUMAR -- DIRECTOR (COMMERCIAL) –

DR. SUMAN KUMAR -- DIRECTOR (COMMERCIAL) –

NBCC (INDIA) LIMITED · MODERATOR:

MR. ANJEEV KUMAR JAIN – DIRECTOR, FINANCE –

MR. M.

SINGHAL -- EXECUTIVE DIRECTOR, FINANCE – NBCC (INDIA) LIMITED MR. BALKISHAN SINGLA -- INVESTOR RELATIONS –

Moderator · Conference Operator

MR. MOHIT KUMAR -- ICICI SECURITIES LIMITED

NBCC (INDIA) LIMITED · MODERATOR:

August 08, 2025

Moderator · Conference Operator

Ladies and gentlemen, good day, and welcome to NBCC's Q1 FY 2025-'26 Investors Earnings Conference Call hosted by ICICI Securities.

As a reminder, all participant lines will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone.

Please note that this conference is being recorded.

I now hand the conference over to Mr. Mohit Kumar from ICICI Securities.

Thank you, and over to you, sir.

Mohit Kumar

Good morning.

On behalf of ICICI Securities, we welcome you all to the Q1 FY '26 Earnings Call of NBCC Limited.

Today, we have with us the management, Shri K.

Mahadevaswamy, Chairman cum Managing Director; Shri Saleem Ahmad, Director Projects, Dr. Suman Kumar, Director, Commercial; Shri Anjeev Kumar Jain, Director, Finance; Shri M.

Singhal, Executive Director, Finance; and Shri Balkishan Singla, Investor Relations.

We'll start with a brief opening remarks followed by Q&A.

Thanks, and over to you, sir.

NBCC (INDIA) LIMITED · MODERATOR:

August 08, 2025 Business awarded to the contractor.

In quarter 1, we have awarded INR1,700 crores of new tenders on consolidated level.

Redevelopment projects status: In quarter 1 FY 2026, GPRA Netaji Nagar projects, the first phase of the project valued INR1,450 crores has completed around 85%.

And two more projects in Netaji Nagar valuing INR2,000 crores have started giving contributions, which are awarded in quarter 4 financial year '24-'25.

And INR1,900 crores more in pipeline to award in Netaji Nagar.

Sarojini Nagar.

This is the large project and work has been going in nine packages, and now three more projects have started in contribution.

So total tally of the running project leads to INR8,000 crores.

Amrapali project.

For the Amrapali project Phase I, NBCC made significant progress.

We have successfully completed 19 projects out of 24 projects taken over, with four more projects slated to the completion in the next quarter and one remaining project expected to be finished by March next year.

In terms of units, we have completed 28,000 units, an addition of 7,000 units will be completed in next quarter.

And the remaining 2,000 units by March 2026.

In last quarter, we have shared that we have awarded Phase 2 of Amrapali projects valuing of around INR9,000 crores in different packages, but now these projects have started giving contribution and upcoming quarters, they will have a significant contribution in top line and bottom line.

In quarter 1, it has contributed around INR300 crores in top line.

In this phase, we have seven projects for bulk sale, comprising 8,200 units.

Out of these five projects with 4,600 units have already been sold.

The remaining two projects will be sold in the next quarter.

It is expected to provide strong funding for project execution.

Thank you.

Now the forum is open for the question-answer session.

Abhinav

Okay.

My second question is the EPC revenue fell by about 16% year-on-year.

This is due to the Maldives project nearing completion.

Are there any replacement projects lined up?

And similarly, real estate also saw some sharp fall in revenues and profit.

If you can throw some light on the segments as well as overall FY '26 revenue target?

NBCC (INDIA) LIMITED · MODERATOR:

August 08, 2025 So the rest of the two land parcels in Jaipur that we're going to start.

And of course, we are planning our Ghitorni land.

Regarding sale of real estate, Bhubaneswar, I think during this year, we're going to get, the complete inventory will be going to sold in Bhubaneswar as well as Lucknow.

Abhinav

Understood.

Sir, my last question is on EBITDA margins.

The margins improved 100 bps year- on-year on a stand-alone basis.

How much of this is sustainable?

I mean, is the company targeting 6%-plus margins for FY '26?

Moderator · Conference Operator

Thank you.

The next question is from the line of Anjali Bajaj from Naredi Investment.

Please go ahead.

Anjali Bajaj: · Okay. Okay, sir. And my second question is regarding the real estate segment, I see a significant

Thank you for giving me opportunity.

My question is regarding to, with the consolidated order book of the INR1,20,300 crores, what is the expected revenue recognisation time line for the significant portion of this order book?

And are there any specific large projects within this order book that are anticipated to contribute substantially to revenue in coming years?

Will this include the completion of flagship projects like Amrapali Phase 2, Supertech?

Or are there any challenges you may face?

Okay.

Okay, sir.

And my second question is regarding the real estate segment, I see a significant decline in both revenue and profits, could you provide more details on specific real estate project that impacted this decline?

And what are the company's strategy to revive the growth and profitability in the real estate segment for the remaining of the financial year '26?

Okay sir.

Thank you.

NBCC (INDIA) LIMITED · MODERATOR:

August 08, 2025

Moderator · Conference Operator

The next question is from the line of Venkatesh Subramanian from Logictree Consultants Private Limited.

Please go ahead.

Venkatesh Subramanian

Good morning, sir.

My question is for the next three years.

I think in your earlier calls you had said that FY ‘26 we would obviously do about INR14,000 odd crores.

Can you give us an idea for FY ‘27 and FY ‘28 what the revenue trajectory looks like?

Considering that we have a INR1,20,000 crores order book.

And I think you also indicated that our order book at some point of time should go towards INR2,00,000 crores.

Can you just give us some update on it sir?

Yes.

NBCC (INDIA) LIMITED · MODERATOR:

August 08, 2025

Moderator · Conference Operator

Thank you.

The next question is from the line of Divyam Doshi from Pragya Securities.

Please go ahead.

Divyam Doshi

Sir, my question was.

We have a very massive order work.

So when are we expecting to roughly finish the entire order work?

NBCC (INDIA) LIMITED · MODERATOR:

August 08, 2025

Divyam Doshi

Okay sir.

And my last question is…

Moderator · Conference Operator

Thank you.

The next question is from the line of Tanmay Phabrani from Nuvama.

Please go ahead.

Tanmay Phabrani

Hi sir.

Good morning.

Thank you for the opportunity.

My first question would be on the order book split between PMC and redevelopment?

So…

NBCC (INDIA) LIMITED · MODERATOR:

August 08, 2025 that overseas project.

Our Maldives project almost completed.

Next month, we were going to hand it over.

Recently, our Hon’ble Prime Minister inaugurated that building, during his visit to Maldives.

So that's a successfully completed.

First time in Maldives, we have constructed with Maivan Shuttering.

Before that, they used to do conventional method, now they are using the Maivan Shuttering.

2000 mass housing project successfully completed and recently our PM sir inaugurated that building.

Tanmay Phabrani

Got it.

Congratulations on the overseas project, sir.

Just the last question on the data aspect, sir.

What are the pre-sales that you are targeting for the full year and seed money and cash in our books as of now?

K.P. Mahadevaswamy

My Director Finance will answer.

Anjeev Kumar Jain

As Seed money is concerned as of June 2025, it is INR661 crores and some INR20 crore interest is also there and mainly seed money is related to the Amrapali project.

Moderator · Conference Operator

Actually, the current participant got disconnected.

We would move to the next question.

The next question comes from the line of Jainam Jain from ICICI Securities.

Please go ahead.

Jainam Jain

Thank you for the opportunity.

Sir, my first question is, what are the major challenges are we facing?

And how are we dealing with that?

K.P. Mahadevaswamy

Major challenges is basically arranging fund in redevelopment projects.

And of course, getting statutory approval clearances in redevelopment projects.

So, these 2 we are addressing.

Because earlier in a Amrapali arranging the fund was the major challenge.

So, we sold inventory through channel partners.

To overcome this challenge, what we did with them, we called bulk sales, so bulk sales, the builder had purchased the inventory and they are paying.

So that address we addressed.

Similarly, in 7 GPRA, the Tree-transplantation was a big challenge.

Now we got the clearance also a big relief.

Now we got the clearance also.

Some encroachment was there.

So that encroachment through court we have settled, some 300 families were shifted from here to other areas, we have given a compensation to them.

So, these are all the challenges we have faced and we have overcome using our strategy.

Jainam Jain

Okay.

Sir, we have guided for INR15,000 crores of projects awarded in the FY '26.

And in Q1, we were able to award only INR2,000 crores projects awarded.

Are we seeing any delay in project awarding?

K.P. Mahadevaswamy

Pardon me.

Are we?

Jainam Jain

Are we seeing any delay in project awarding?

K.P. Mahadevaswamy

No, no. Last year, we have major awarded in the history of NBCC.

We awarded more than INR20,000 crores.

So currently, our running project is more than INR32,000 crores.

That's why we execute easily INR14,000 crore to INR15,000 crores we're targeting for this year.

NBCC (INDIA) LIMITED · MODERATOR:

August 08, 2025

Jainam Jain

Okay, sir.

Sir, my next question is out of INR1.2 trillion of ordering book, what percentage are executable in FY '26 and FY '27?

K.P. Mahadevaswamy

INR32,000 crores.

Standalone INR32,000 crores, is there.

Running project.

Jainam Jain

Sir, my last question is, do we have any slow-moving projects in our order book?

K.P. Mahadevaswamy

We are in the discussion with PSU and various state governments.

We are expecting with various state governments redevelopment projects.

Jainam Jain

Okay, sir.

That answers my question.

Thank you so much and all the best.

Moderator · Conference Operator

The next question is from the line of Tanmay Phabrani from Nuvama.

Please go ahead.

Tanmay Phabrani

Sorry, sir, I got disconnected.

Just wanted to see the status update on the Supertech and Grittoni projects?

K.P. Mahadevaswamy

Regarding Grittoni projects, the appointment of consultant is in process.

And during this year, fag end of this year, next year, we are going to start this project.

Regarding Supertech, the matter is with Supreme Court.

As soon as it is finalized by Supreme Court, then we can take up these projects.

We have already appointed our consultant.

So, we're waiting the decision from Supreme Court.

Tanmay Phabrani

Got it.

Hopefully, you will get that sir.

And last...

K.P. Mahadevaswamy

You would have read the articles demanding even from Honourable Prime Minister and Honourable Chief Justice of India to give this work to NBCC, that is a good part.

Tanmay Phabrani

Yes absolutely, sir.

I just want the last update on the cash in our books as of now?

Anjeev Kumar Jain

Yes.

Cash in hand in our books is as on 30th June, 2025, is INR460 crores.

Tanmay Phabrani

INR460 crores?

Anjeev Kumar Jain

Yes.

Tanmay Phabrani

Yes, all right.

That is it from my side, sir.

Thank you and all the best.

Moderator · Conference Operator

The next question is from the line of Pankaj Kumar from Kotak Securities.

Pankaj Kumar

Yes, sir.

Thanks for taking my question.

Sir, question pertains to the PMC segment, we have seen a little flattish kind of growth, though we are targeting a full year revenue of around INR15,000 crores on consol basis.

And so, can you help us with the execution, what impacted?

K.P. Mahadevaswamy

First quarter, you might have seen other PMC Companies also.

In Northeast region and even Uttarakhand due to heavy rain, we could not do execution of work in that part.

And our Maldives work is going to complete.

So therein, we got some revenue from Maldives.

Anyhow, Amrapali already started and, the clearance part is over, we have awarded the contract, but the permission

NBCC (INDIA) LIMITED · MODERATOR:

August 08, 2025 and the drawings and all that also now over.

Now work is started in the current quarter and next quarter onwards going to definitely increase, 20% increase.

Pankaj Kumar

Okay.

And sir, on the stand-alone basis, earlier you indicated we are expecting about INR11,000 crores, so that's the right number?

K.P. Mahadevaswamy

Yes.

Pankaj Kumar

Okay.

And sir, on the 7GPRA project, what value of the contracts you have to be awarded and what we are planning to do in the coming year -- sorry, coming quarters?

K.P. Mahadevaswamy

Around INR4,000 crores work has to be awarded.

Two tenders are on preparation that are going to call by this month end only.

And 2 more tenders by this quarter end, hopefully, this quarter end.

So, INR4,000 crores work is ready to call-for-tender.

Pankaj Kumar

And sir, in terms of total tenders that we are targeting to award roughly INR15,000 crores of conservative basis.

So, you said that's our console number.

So, what is the number on stand- alone?

K.P. Mahadevaswamy

Stand-alone around INR12,000 to INR13,000, we can say.

Pankaj Kumar

And how this number will look like for next year on both consolidated and the stand-alone?

K.P. Mahadevaswamy

Next year, minimum INR20,000 crores to INR25,000, because we are expecting J&K project due to change in government, the approval has got delayed.

Now everything is on track.

Similarly, we're going to award this Goa Government project, consultant has already prepared the DPR.

So, we're going to call that tender for Goa Projects.

And for MAHAPREIT project, also we are arranging fund, wherein we need seed money.

Basically, MAHAPREIT is getting delayed due to sanction of seed money.

So today we have a meeting with MAHAPREIT.

The MD will be reaching here.

We're going to talk with HUDCO and other financial institutions.

Once the money is arranged definitely that is INR25,000 crores order.

So, we are going to award that also.

Pankaj Kumar

Okay.

And sir, my last question is on the margin.

So, in this quarter, we have seen despite a little lower execution, the PMC margin was higher.

So, any one-off in that?

K.P. Mahadevaswamy

So Amrapali and 7GPRA, the PMC margin, we are getting average 8%, plus some marketing percentage also we are getting.

In these 2 projects, we are getting 1% on sale components.

There, we are getting good profit margin.

That's why we're getting good margins.

Pankaj Kumar

Okay, sir.

Thank you.

All the best.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, this was the last question.

I now hand the conference over to the management for the closing comments.

Thank you, and over to you, sir.

NBCC (INDIA) LIMITED · MODERATOR:

August 08, 2025

K.P. Mahadevaswamy

Just to update you that redevelopment projects from state government and few CPSC negotiation and discussions are at an advanced stage.

We are sure that in our self-evaluation for MoU financial year '24-'25 in-line with detailed guidelines indicates the strong likelihood of achieving an excellent rating consistent with our performance in the year 2023-'24.

Some of the projects mentioned in my opening remarks, maybe large-scale, but their extract value is still assessing, as we are currently in the process of finalizing the detailed project reports.

A huge thank to all of you valued investors for your consistent support into NBCC.

We appreciate your trust and confidence in that.

Once again, thank you everyone.

Moderator · Conference Operator

Thank you.

On behalf of ICICI Securities, we conclude this conference.

For any further query or information, please reach out to Mr. Balkishan Singla, Investor Relations, NBCC.

Thank you for joining us and you may now disconnect your lines.

Questions and answers

Moderator · Conference Operator

Thank you very much.

The first question is from the line of Abhinav from ICICI Securities.

Please go ahead.

Abhinav

Thanks for the opportunity.

My first question is what is the target for awarding tenders in FY '26?