NCL Industries shares closed flat at ₹171.35 on the National Stock Exchange on Tuesday, down ₹0.12 or 0.07%, as operational margin compression shadowed steady top-line expansion.
Net profit dropped to ₹20 crore for the quarter ended September 30, 2026. A year earlier, the building materials manufacturer delivered ₹21.4 crore. Revenue from operations climbed 9.6% year-on-year to ₹386 crore from ₹352 crore, driven by volume traction across core operations. But cost pressures bit into operational profitability.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) tumbled 36.1% to ₹37.2 crore against ₹58.2 crore in the corresponding quarter last year. Operating EBITDA margin shriveled to 9.6% from 16.5% — shedding 690 basis points in twelve months. The board of directors approved the unaudited standalone and consolidated financial results during its November 12 meeting, where statutory auditors issued unmodified limited review reports.
| Financial Metric | Q2 FY27 | Q2 FY26 | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹386.00 Cr | ₹352.00 Cr | +9.60% |
| EBITDA | ₹37.20 Cr | ₹58.20 Cr | -36.10% |
| EBITDA Margin (%) | 9.60% | 16.50% | -690 bps |
| Net Profit | ₹20.00 Cr | ₹21.40 Cr | -6.54% |
Alongside quarterly earnings, the board pushed forward a capital allocation drive to secure its power supply.
Directors cleared the execution of Phase 2 and Phase 3 of the company's 130 MW hybrid solar and wind power project located at Tuticorin in Tamil Nadu. The two newly approved phases account for the remaining 80 MW of planned capacity and require an estimated capital expenditure of ₹595.17 crore.
The company had previously sanctioned Phase 1 — covering 50 MW — at an estimated cost of ₹392 crore. With Tuesday's board greenlight, the cumulative capital outlay across the entire 130 MW project jumped to ₹987.17 crore. Management will fund the rollout through a mix of long-term debt and internal cash accruals.
Market Context: Industrial producers across southern manufacturing corridors continue to hedge against grid tariff inflation by locking in captive renewable generation. The Tuticorin plant is designed to supply power directly to NCL Industries' operating units, while surplus generation will be routed to national power exchanges and merchant customers under third-party power purchase agreements.
NCL Industries is also laying groundwork to push its manufacturing footprint into eastern India.
The board issued in-principle approval to approach the Odisha government to explore establishing a greenfield cement manufacturing plant. Under the mandate, executive teams will file administrative applications and seek industrial land allocations from state authorities.
The company emphasized that talks remain exploratory. NCL Industries has executed no definitive agreements, secured no formal land allocations, and committed no binding capital to acquire or lease acreage. Further capital deployment will depend on regulatory approvals, infrastructural connectivity clearances, and subsequent project viability evaluations.
Commercial commissioning for the full 130 MW Tuticorin energy complex is scheduled for February 2028, contingent on final grid connectivity pacts.