Why NCC Share Price is Rising

The construction sector in India is growing rapidly. Increased government spending on infrastructure and rising urbanization are key drivers.

The sector has seen strong demand across roads, railways, airports, and real estate. Many large-scale projects are being executed across the country. This growth has benefited companies via strong order inflows and revenue visibility.

NCC is one of the leading players in India's construction and infrastructure sector. It's involved in projects related to roads, buildings, irrigation, and urban development.

The company plays a crucial role in India's ongoing infrastructure push, contributing to major national and state-level projects. Its steady business growth, diversified profile, and execution capabilities have positioned it as a key player in the industry.

NCC's share price is in focus as it has rallied recently. Over the past five days, NCC share price has surged 7.1%.

Let's take a look at the key reasons behind it.

Strong Order Inflow

NCC's stock rally is fueled by strong order inflows, with the company securing multiple contracts in recent months.

On 20 March 2025, NCC announced a Rs 21.3 billion (bn) order from the Andhra Pradesh Capital Region Development Authority (APCRDA). The project involves construction of roads, drains, water supply, sewage, utility ducts for power and ICT, reuse water lines, and avenue plantation.

It was awarded on a lumpsum contract (percentage tender) basis and is expected to be completed over a three-year construction period, followed by a two-year defect liability period.

Also, NCC secured multiple orders in February 2025, including a Rs 2.2 bn project in the transportation division of a state government. These contract wins highlight NCC's strong execution capabilities and growing demand for its services.

With a steady pipeline of new projects, investor confidence has surged, driving the stock price higher. As infrastructure development in India accelerates, NCC is well-positioned to capitalise on emerging opportunities, making it a key player in the sector's growth.

What Next?

NCC is poised for strong growth, backed by a robust order book, improved execution pace, and a healthy pipeline of new projects.

As of December 2024, NCC's order book stands at Rs 555.5 bn, covering key segments like buildings, transportation, water, electrical, irrigation, and mining.

The buildings division holds Rs 210.8 bn, accounting for 38% of the total order book, while the transportation division has Rs 108 bn, making up 19%. The company is actively bidding for projects worth Rs 2.4 trillion (tn), indicating strong future growth prospects.

For FY25, NCC has revised its revenue growth guidance to 5%, down from the earlier 15%, due to election-related slowdowns and delayed payments from clients. However, execution is expected to improve in FY26 as payments pick up and newly secured orders get executed.

The company is aiming for double-digit revenue growth in FY26, supported by order inflows and a faster execution cycle.

Margins are expected to remain stable, with an EBITDA guidance of 9.2% for FY25. The company expects to improve margins in Q4 FY25, targeting 9.5% EBITDA, benefiting from higher revenue in the last quarter of the financial year.

Debt levels have increased to Rs 24.1 bn, primarily due to delays in payment cycles. However, NCC anticipates a reduction in debt by FY26 as client payments improve. Its debt-to-equity ratio of 0.3 remains comfortable.

Looking ahead, NCC is focusing on securing expressway, water supply, and smart meter projects. The Ken-Betwa River interlinking project is expected to begin execution in Q1 FY26, contributing to revenue growth.

Additionally, the company remains confident about securing more government-backed infrastructure projects, given the increase in capital expenditure to Rs 19.8 tn in FY26.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

How NCC Share Price has Performed Recently

In the past five days, NCC share price has rallied 8.3%. In the last month, it is up 4.3%.

In the last six months, its share price has nosedived 36.1%. Additionally, in the last one year, its share price is down 7.8%.

The stock touched its 52-week high of Rs 364.5 on 31 July 2024 and a 52-week low of Rs 169.9 on 3 March 2025.

About NCC

NCC Limited is one of India's largest listed construction companies by revenue. It operates in buildings, transportation, water and environment, electrical (T&D), irrigation, mining, and railways.

Headquartered in Hyderabad, it has offices in nine cities, including Delhi, Mumbai, and Bengaluru.

The company has taken on large-scale infrastructure projects across the country, handling urban development, roads, power transmission, and railway works. With over four decades in the industry, it has built expertise in executing complex projects.

NCC has completed a wide range of projects, securing its place in the sector. It continues to focus on expanding its portfolio and securing high-value contracts.

To know more about the company, NCC company fact sheet and quarterly results.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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