NCC shares fall 10.63% on weak Q3 results, Centrum downgrades outlook 

Shares of NCC Limited plunged 10.63 per cent to ₹212.30 on the NSE at 11.37 AM on Thursday after the company posted weak Q3FY25 results and Centrum Broking lowered its revenue guidance.

The company’s revenue for the quarter ended December 31, 2024, declined 1.6 per cent year-on-year (YoY) to ₹4,670 crore, missing Centrum’s estimate by 10.5 per cent. EBITDA dropped 15 per cent YoY to ₹410 crore, while margins fell to 8.8 per cent from 10.1 per cent in Q3FY24. Net profit stood at ₹185 crore, marking a 12.9 per cent YoY decline. Centrum cited delayed payments from clients and post-election spending slowdown as key reasons for NCC’s weak performance.

The Hyderabad-based construction major also revised its revenue growth forecast for FY25 downward from 15 per cent to 5 per cent. Margin guidance has been cut to 9.25 per cent from the earlier 9.5-10 per cent. Despite securing orders worth ₹8,440 crore in Q3FY25, the company’s order book declined 3 per cent YoY to ₹55,550 crore.

Centrum Broking maintained a “REDUCE” rating on NCC and slashed its target price to ₹247 from ₹310, citing execution concerns and slower project awards, especially in Maharashtra, where NCC has significant exposure. The state’s recent elections have delayed key projects like smart meters, the Goregaon-Mulund Link Road, and MSRDC developments.

While the company expects to meet its order inflow target of ₹20,000-22,000 crore in FY25, analysts remain cautious about near-term growth. Shares of NCC have fallen 8.6 per cent in the past month, underperforming the NIFTY Midcap 100 index.