Ladies and gentlemen, good day and welcome to NBCC's Q1 FY 2025-2026 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 touch-tone 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.
Yeah.
Good morning. On behalf of ICICI Securities, we welcome you all to the Q1 FY 2026 earnings call of NBCC Limited. Today, we have with us the management, Shri K.P. Mahadevaswamy , Chairman and Managing Director, Shri Saleem Ahmad, Director of Projects, Dr. Suman Kumar, Director of Commercials, Shri Anjeev Kumar Jain, Director of Finance, Shri M.B. Singhal, Executive Director of 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.
Good morning, everyone. A warm welcome to all of you in today's earnings call for first quarter ended on 30th June 2025. For quarter one, on standalone operation and execution, we have achieved a total operating income of INR 1,655 crores and INR 2,391 crores on consolidated, reflecting an increase of 12% YoY on consolidated basis. And our standalone PAT stands at INR 114 crores, marking a significant 32% YoY growth. Additionally, our consolidated PAT stands at INR 135 crores, making 26% YoY growth. Order book: NBCC standalone order book is standing INR 105,000 crores and consolidated order book INR 120,000 crores. Business secured: NBCC has secured INR 2,400 crores on consolidated basis in quarter one, following major project secured in quarter one by NBCC. Permanent campus of JNV in various districts: INR 518 crores. Redevelopment project of MDA : Meerut INR 297 crores. UCO Bank Head Office, New Town, Kolkata: INR 172 crores. Central University of Haryana, Mahendragarh: INR 167 crores.
Interior works at World Trade Center in New Delhi: INR 152 crores. Township project by NEEPCO Shillong Meghalaya: INR 131 crores. Our subsidiary HSCL got two new government medical colleges and hospitals at Parbhani and Sangli Maharashtra. Other MoU signings: MoU signed with RailTel to develop data center projects in India and overseas for a period of five years. MoU with National Film Development Corporation, that is NFDC, for redevelopment of iconic Siri Fort Auditorium complex in New Delhi. MoU signed between NBCC and Department of Posts to redevelop prime government land parcels across India into self-sustainable commercial and residential lots. Business awarded to the contractors: In quarter one, we have awarded 1,703 new tenders on consolidated level. Redevelopment projects: In quarter one, financial 2026 in GPRA Netaji Nagar project, the first stage of the project valued INR 14,500 crores is around 85% completed.
Two more projects in Netaji Nagar valued INR 2,000 crores have started giving contributions, which are awarded in quarter four financial year 2024-2025, and INR 1,900 crores more in pipeline to award in Netaji Nagar. Sarojini Nagar: This is the large project, and work has been going on nine packages, and now three more projects have started giving contributions. So total tally of the running project leads to INR 8,000 crores. Amrapali project: For the Amrapali project phase 1, NBCC made significant progress. We have successfully completed 19 projects out of 24 projects taken over, with four more projects slated to be completed 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 additional 7,000 units will be completed in next quarter, and remaining 2,000 units by March 2026.
In last quarter, we have shared that we have awarded phase 2 of Amrapali project, valuing of INR 9,000 crores of work in different packages. Now these projects have started giving contributions, and upcoming quarters, they will have significant contributions in top line and bottom line. In quarter one, we have contributed around INR 300 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 bulk sold. The remaining two projects will be sold in the next quarter. This is expected to provide strong funding for the project execution. Thank you. Now the forum is open for the question-answer session.
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Abhinav from ICICI Securities. Please go ahead.
Yeah. Good morning, sir. Thanks for the opportunity. My first question is, what is the target for awarding tenders in FY 2026?
Tenders awarding? Around INR 15,000 crores.
Okay. My second question is, the EPC revenue fell by about 16% YoY. 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 profits. If you can throw some light on these segments as well as overall FY 2026 revenue target.
EPC contract we are trying. Yes, definitely, we are going to get some more EPC projects which are in pipeline. Regarding real estate, we are going to start our 37D tendering process. So that will go into within a week's time. We are trying for our Jaipur. We have three land parcels. One tender already we are awarded, and approval is in process. So the rest of the two land parcels in Jaipur, that we are going to start. Of course, we are planning our Ghitorni land. So that will also going to take place. Regarding sale of real estate, Bhubaneswar, I think during this year, we are going to get the complete inventory will be going to sold in Bhubaneswar as well as Lucknow.
Understood. So my last question is on EBITDA margins. The margins improved 100 basis points year-on-year on standalone basis. How much of this is sustainable? I mean, is the company targeting 6%+ margins for FY 2026?
Definitely. EBITDA will be more than 6%-6.5%. We are targeting 6%-6.5%.
Thank you, sir. That was helpful. Thanks a lot.
Thank you.
Thank you. The next question is from the line of Anjali Bajaj from Naredi Investment. Please go ahead.
Hello. Good morning, sir. Thank you for giving me the opportunity. My question is regarding to with the consolidated order book of the INR 120,300 crores. What is the expected revenue recognition timeline 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? Did this include the completion of flagship projects like Amrapali phase two, Supertech? Are there any challenges you may face?
The top line current year we are expecting around INR 14,000 crores-INR 15,000 crores, and Amrapali Phase 1 is going to complete by March. Phase 2, of course, after seven packages we have started, and the work is in full swing, and the sale part also we have completed for four projects. There's two projects in the pipeline. So once the sale is over, then the major challenge is in Amrapali generating fund. These projects are self-sustainable projects. We are the government budget funding is not coming. So that's why the timeline is a little bit more we are considering three-to-four years, so otherwise, for PMC project, we will complete by within two years.
Okay. Okay, sir. And my second question is regarding to real estate segment experiencing a significant decline in both revenue and profits. Could you provide more details on specific real estate projects that impacted this decline? And what are the company's strategies to revive the growth and profitability in the real estate segment for the remaining of the Financial Year 2026?
Real estate, we have two inventories currently. In two projects, we have an inventory. One is in Lucknow, and one is Bhubaneswar. So Bhubaneswar, hopefully, during this quarter or next quarter, we are going to finalize. The sale part will be completed in the Bhubaneswar. And of course, Lucknow also in progress. Some major clients, they are in negotiation going on with the major clients. Around INR 325 crores-INR 350 crores pending value we are expecting during this year in the real estate.
Okay. Okay, sir. Okay, sir. Thank you.
Thank you.
Thank you. The next question is from the line of Venkatesh Subramanian from Logic Tree Consultants Private Limited. Please go ahead.
Good morning, sir. My question is for the next three years. I think in your earlier calls, you had said that FY 2026, we would obviously do about INR 14,000 crores. Can you give us an idea for FY 2027 and FY 2028 what the revenue trajectory looks like, considering that we have a INR 1,020,000 crores order book? And I think you also indicated that our order book at some point of time should go towards INR 2,000,000 crores. Can you just give us some update on it, sir?
This year INR 14,000 crores-INR 15,000 crores. Next year, there will be INR 18,000 crores-INR 19,000 crores. And 2027, 2028, around INR 25,000 crores. And the order book we are expecting. Currently, the negotiation is going on with various state governments for their redevelopment. Along with some major PSUs, they have huge land parcels. So the discussion is going on. Once it is finalized, we will definitely let you know. Recently, we got redevelopment projects with the Department of Post. There are huge land parcels across India. We have signed an MoU that value has to be at that time. So once the estimated is submitted, DPR prepared, so we will come to know that. So during this year, minimum business we are expecting around INR 20,000 crores-INR 25,000 crores. But it will be more than that because various state government we have discussion in final stage. One is Rajasthan State Government.
Another one is Chhattisgarh, Jharkhand. So we are talking with them because they have huge land parcels or old depleted townships. So they don't have money to reconstruct. So they use a better model than PPP model because in PPP, anybody, any builder comes, they are expecting some profit margin. In this case, we are taking our PSU and whatever profit is there, that will pass on to clients. Just like World Trade Center, we have generated more than INR 14,000 crores in just 25 acres of land. So similar model, this model can transfer to various state governments and even for PSUs also. A lot of PSUs are incurring huge loss or they are paying interest. But they have huge land potential. So that we are going to redevelop. This is our main target also.
Okay. So is it fair to assume, sir, over the remaining part of the year, we will start hearing more MoUs, more order flows starting to getting executed, basically, or in terms of getting the orders?
Yes, definitely. Definitely. I think next two, three years, our output will be more than INR 2 lakhs.
Okay. Then the other question is, if we are assuming something like INR 18,000 crores-INR 25,000 crores top line, I understand that based on PMC and other things, the EBITDA margin works out to 6%. But you had also indicated that we will, at some point in the next two years, you will do a sale of real estate property or a land or something, which will give additional income. So broadly, we were factoring in about INR 1,800 crores-2,000 INR crores of profits because we get 6% from PMC and the real estate. Something that you mentioned, can you give us an update on that, sir?
Definitely. In the year 2027-2028, the bottom line will be around INR 2,000 crores. So top line is INR 25,000 crores. Around our PAT will be somewhere 7%-8%. It may cross also because our overheads are fixed. Our overheads are our salaries. Once it is fixed, it will break even at INR 5,000 crores, INR 5,500 crores. More than that, whatever we are doing, it will come to our bottom line.
Okay. Okay. Any update on the Delhi colonies redevelopment, sir? You were talking to the Delhi government.
Yes. Yes. Yes. Already, discussion is going on, so I don't want to discuss presently. So, we have a discussion with MCD. MCD is having huge land parcel. Even Delhi Development Authority also. We did the one Karkardooma project. Now, the phase 2 work we are going to get. Already, MoU is there, so we are going to start phase 2 also. They have some old colony. It is in dilapidated condition. That also they wanted to do in redevelopment, so discussion is going on. And any moment, we can get this order. We are going to receive this order shortly.
Okay, sir. Sure. Thanks. I'll join the queue. Thank you very much.
Thank you. The next question is from the line of Divyam Doshi from Pragya Securities . Please go ahead.
Hello.
Please go ahead.
Sir, my question was, we have a very massive order book. So when are we expecting to roughly finish the entire order book?
Four to five years. We can say in redevelopment, we need at least four to five years because in redevelopment, not many issues are there. One is approval. The other one is vacation of the quarters. So redevelopment model will be four to five years. Whereas in PMC project, we are completing less than two years also.
Okay. And sir, my second question was, can you give us a geographical distribution of where the major projects in the company are?
Presently, the major orders are in Delhi and NCR only. Amrapali, we have around INR 8,900 crores-INR 10,000 crores. And in 7 GPRA Colony, Delhi, we have around INR 15,000 crores order. And Maharashtra, recently we got MAHAPREIT, INR 25,000 crores. J&K Satellite, Bemina Satellite redevelopment, that is around INR 15,000 crores. So across India, we have future projects. Currently, we have the projects, running projects, I can say in Delhi and NCR. And even [market] also, we are getting some orders, water supply and sanitation and all India hospital work and all. So recently, we got some 10 schools in Eklavya Model Residential School in Chhattisgarh. So that tendering is going on. So we got recently south also Bangalore. Earlier, we don't have any work in Bangalore. Recently, we got Rajiv Gandhi Health Mission work. So we are securing all over India. We are focusing on all over India. Goa in advanced phase.
Redevelopment of Goa projects. Already consultant appointed is over. GPRA is on final stage. We are going to call tender either this quarter or definitely next quarter.
Okay, sir. And my last question is .
We are going to.
Are you expecting a top line of between INR 20,000 crores-INR 25,000 crores in that FY 2027-2028 year? So what are you expecting the EBITDA margin to be in that timeline?
EBITDA 8%-9%.
Okay. Okay, sir. Thank you so much.
Thank you.
Thank you. The next question is from the line of Tanmay Phabrani from Nuvama. Please go ahead.
Hi sir. Good morning. Thank you for the opportunity. My first question would be on the order book split between PMC and redevelopment?
PMC around 90-92%. So PMC.
And redevelopment is?
40-60%.
Okay.
In the segment-wise, 43% PMC, 57% redevelopment in parallel basis. Whereas consolidated level, 51% PMC, 49% redevelopment.
Got it. Got it, sir. Sir, the next question would be on the guidance for order intake and order awarded for FY 2026.
From 2026, we are going to award around INR 15,000 crores. We are targeting to award INR 15,000 crores minimum. This is minimum conservative figure. So, we are expecting minimum INR 20,000 crores business development during this year.
Great. Great, sir. And sir, any status updates? And we wanted to know about the top 10 projects right now which are in the order book along with the value of those projects.
One is 7 GPRA Colony. That is redevelopment of 7 GPRA Colony, Netaji Nagar, Nauroji Nagar, Sarojini Nagar. Of course, Nauroji Nagar completed, and 100% we have sold the commercial space. So the rest of the thing is Amrapali. Second one is Amrapali. Third one is J&K, MAHAPREIT. Some Orissa Cuttack. Orissa also, we are doing good business. Recently, we are awarded Central University Cuttack for a lot of work also awarded to the contractors, and we are doing good job. DTC, Delhi Transport Corporation work due to lack of timing committee. The work awarded one year back, but we could not start. Now the timing committee has formed and approval is in process, and DVC in Kolkata and Durgapur, Damodar Valley colony, we are doing residential colonies. That is our major projects.
Got it.
One more thing. We have successfully completed that overseas project our Maldives project almost completed. Next month, we are going to hand it over. Recently, our Prime Minister inaugurated that building during his visit to Maldives. So that we have successfully completed. First time in Maldives, we are constructed with Mivan Shuttering. Before that, they used to do conventional method. Now they are using the Mivan Shuttering. 2,000-unit housing project successfully completed. And recently, PM sir inaugurated that building.
Got it. Congratulations on the overseas project, sir. Just the last question on the data aspect, sir. What are the pre-sales that we are targeting for the full year and seed money and cash in our books as of now?
My Director Finance will answer.
Sir, seed money is not signed as of June 2025. It is INR 661 crores. And some INR 20 crores interest is also there. And mostly seed money is related to the Amrapali project.
Hello?
Hello?
Actually, the current partition 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.
Thank you for the opportunity. Sir, my first question is, what are the major regulatory challenges that we are facing and how are we dealing with them?
Major challenges are basically arranging funds in redevelopment projects, and of course getting tax-free approval clearance in redevelopment projects. These two we are addressing because earlier in Amrapali the arranging the fund was the major challenge. We sold inventory through channel partner. To overcome this challenge, what we did this time, we called bulk sale. Bulk sale, the builder has purchased the inventory and they are paying. That we addressed. Similarly, in 7 GPRA the tree-trans plantation was a big challenge. Now we got the clearance also. Some encroachment was there. That encroachment through court we have settled. Around 300 families we have shifted from here to other areas. We have given the compensation to them. These are all the challenges we have faced and we overcome by using our strategy.
Okay. Sir, we are guided for INR 20,000 crores of order inflow in this FY 2026. And in Q1, we were able to bag only INR 2,000 crores of order inflow. Are we seeing any delay in project awarding?
Pardon me? Are you?
Are we seeing any delay in project awarding?
No, no. We are doing it. Last year, the highest awarded in the history of NBCC, we awarded more than INR 18,000 crores-INR 20,000 crores. So currently, our running budget is more than INR 32,000 crores. So that's why we are going to execute easily INR 14,000 crores-INR 15,000 crores we are targeting for this year.
Okay, sir.
Let's go into the upcoming one.
Okay, sir. Sir, my next question is, out of INR 1.2 trillion of order book, what percentage is executable in FY 2026 and FY 2027?
We are going to execute INR 32,000 crores. Standalone, INR 32,000 crores is the running project.
[audio distortion]
Sir, my last question is, do we have any slow-moving project in our order book?
We are in discussion with going on with MCD and various state governments. At any moment, slow-moving project. We are expecting with various state government redevelopment projects.
Okay, sir. That answers my question. Thank you so much, sir. All the best.
Thank you. Before we take the next question, we would like to remind participants to press star and one to ask a question. The next question is from the line of Tanmay Phabrani from Nuvama. Please go ahead.
Sorry, sir. I got disconnected. Just wanted to see a status update on the Supertech and Amrapali projects.
Regarding Ghitorni project, so the appointment of consultant is in process. And during this year, second half of this year, next year, we are going to start this project. Regarding Supertech, the matter is sub-judice, which is with the Supreme Court. As soon as it is finalized by the Supreme Court, then we can take up this project. We have already appointed our consultant. Consultants are both. So we are awaiting the decision from the Supreme Court.
Got it. Got it. Hopefully, you get that, sir. And lastly,
we have read the articles. All the members with their demands, even Amrapali, Prime Minister and Chief Justice of India could be referred to NBCC. That is a good point.
Yes. Absolutely, sir. Just want the last update on the cash in our books as of now.
Sir, the first cash in hand in our books is as of June 2025. It is INR 460 crores.
INR 460 crores?
Yeah.
All right. That is it from my side, sir. Thank you and all the best.
Thank you.
Thank you. A reminder to the participants, you may press star and one to ask a question. The next question is from the line of Pankaj Kumar from Kotak Securities. Please go ahead.
Yeah. 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 the full year revenue of around INR 15,000 crores on consolidated. And so can you help us with the execution? What impacted?
First quarter, you might have seen other peers also. In Northeast, actually, this time, Northeast region and even Uttarakhand, due to heavy rain, we could not do execution work in that part. And our Maldives work is going to complete. So therefore, we got some less revenue from Maldives. Anyhow, Amrapali already started and 7 GPRA also. The clearance part is over. We have awarded the contract. But the permission and the drawings and all, that also now over. Now work is started. In this current quarter and next quarter, we will go to definitely increase 20% increase.
Sir, on the standalone basis, earlier you indicated we are expecting around INR 11,000 crores revenue. That's the right number?
Yes. Yes.
Sir, on the 7 GPRA project, what value of the contracts have to be awarded and what we are planning to do in the coming year? Sorry, coming quarter.
Around INR 4,000 crores work has to be awarded. Two tenders are in the preparation. We are going to call by this month end only. And two more tenders by this quarter end. Hopefully, this quarter end. So INR 4,000 crores work is ready to call of tender.
And sir, in terms of total tenders that we are targeting to award, roughly INR 15,000 crores on conservative basis, that's our consol number. So what is the number on the standalone?
Standalone, around INR 12,000 crores-INR 30,000 crores we can pay.
How this number will look like for next year on both consol and standalone?
Next year has been minimum INR 20,000 crores to INR 25,000 crores. Because we are expecting J&K, due to changing government, the approval is got delayed. Now everything is fast track. Similarly, we are going to get the order from we are going to award to Goa Government. The consultant has already prepared the DPR. So we are going to call the tenders from Goa. So MAHAPREIT. MAHAPREIT also, we are arranging fund. Wherein we need seed money. Actually, basically, MAHAPREIT is getting delayed due to sanction of seed money. So today, we have a meeting with MAHAPREIT. MD will be reaching here. We are going to talk with HUDCO and all other financial institutions. Once the money is arranged, definitely that is INR 25,000 crores order. So we are going to award that also.
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?
Amrapali and 7 GPRA, the PMC margin, we are getting 8%. Plus some marketing percentage also we are getting. In these two projects, we are getting 1% on sale components. Wherein we are getting good profit margin. That's why we are getting good margin.
Okay, sir. Okay, sir. Thank you. Thanks. All the best.
Thank you. Thank you.
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.
Just to update you that the redevelopment projects from state governments and a few CPSEs, negotiations and discussions started in advanced stages. We are pleased to report that our self-evaluation for MoU, financial year 2024-25, in line with DPE guidelines, indicates a 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 may be large-scale MoUs, but their exact value is still assessing as we are currently in the process of finalizing the detailed project reports. A huge thanks to all of you, valued investors, for your consistent support to NBCC. We appreciate your trust and confidence in us. Once again, thank you, everyone.
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.