State-owned construction firm NBCC (India) Limited locked in six urban redevelopment deals across West Bengal, widening its municipal contracting pipeline even as operational earnings expanded sharply.
Net profit jumped 33.8% to ₹206 crore for the second quarter of FY27, up from ₹154 crore in the corresponding period last year, according to regulatory filings. Revenue from operations climbed 16.5% to ₹3,396 crore against ₹2,914 crore a year earlier.
The execution pace delivered operating leverage.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) more than doubled, leaping to ₹225.5 crore from ₹104.5 crore. Operating margins widened 300 basis points to 6.6% from 3.6% in the prior-year period.
The state-run project management consultancy signed the memoranda of understanding alongside the West Bengal Department of Urban Development and Municipal Affairs and municipal bodies. West Bengal Urban Development and Municipal Affairs Minister Agnimitra Paul and NBCC Chairman and Managing Director K.P. Mahadevaswamy oversaw the signing alongside state officials.
The pacts target high-density commercial and heritage belts. Under the agreement, NBCC will partner with the Kolkata Metropolitan Development Authority to overhaul the College Street publishing quarter and China Town in Tangra. Along the Hooghly river corridor, the builder will undertake riverfront development with the Chandernagore Municipal Corporation, alongside river ghat projects in Howrah and Nabadwip.
Other components include a feasibility study to redevelop government housing within the Bidhannagar Municipal Corporation area and the construction of public sanitation facilities through the State Urban Development Agency.
NBCC will execute all six mandates on a deposit-work basis. The state government will reimburse actual construction costs directly, while NBCC pockets an agency fee fixed at 5% of the total project expenditure, excluding goods and services tax. Specific project outlays will follow in subsequent project-level disclosures.
Market Context: The deposit-work model protects the public-sector contractor from land acquisition and real estate absorption risks. By taking a flat 5% agency fee on gross development cost, the builder generates fee-based cash flow without committing capital to balance-sheet debt.
| Metric | Q2 FY27 | Q2 FY26 | Change (YoY) |
|---|---|---|---|
| Revenue from Operations | ₹3,396 crore | ₹2,914 crore | +16.5% |
| Net Profit | ₹206 crore | ₹154 crore | +33.8% |
| EBITDA | ₹225.5 crore | ₹104.5 crore | +115.8% |
| EBITDA Margin | 6.6% |
Capital returns accompanied the earnings jump. The company's board declared a second interim dividend of ₹0.25 per equity share of ₹1 face value, representing a 25% payout. NBCC set November 11, 2026, as the record date to fix shareholder eligibility, with disbursements scheduled under statutory Companies Act deadlines.
Yet public market pricing remains subdued.
Shares of NBCC closed 0.40% lower at ₹80.30 on the National Stock Exchange on Thursday. The stock has shed 34.23% so far across 2026, wiping ₹41.80 off its share price since January amid broader contracting sector consolidation.
Order intake outside West Bengal continues to expand across regional administrative centers. NBCC recently secured ₹145 crore in project management assignments spanning five developments across Meghalaya, Jharkhand, and Odisha, adding to large-scale municipal redevelopment frameworks signed in Patna.
| 3.6% |
| +300 bps |
| Interim Dividend | ₹0.25 / share | — | 25% of face value |