NBCC stock slips 2% as Nuvama trims target on soft Q3 - Should you BUY?

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NBCC share price fell 2 per cent on Tuesday to trade at Rs 97.81 apiece, after Nuvama reduced the target price on the heels of soft third-quarter financial results for FY2026. The brokerage noted that the slowdown in housing volumes has led to concerns about the pace of execution on the company’s ‘self-revenue generation’ projects.

The brokerage further added that, "While the book-to-bill at 9.8 times seems robust, 60 per cent of orders pertain to ‘self-revenue generating projects’ wherein the pace of real estate monetisation shall determine execution."

The brokerage also noted that NBCC has awarded Rs 2,700 crore of works in these projects so far in FY26 and has a tender pipeline of Rs 1,400 crore. Management expects to complete them in the next two years. While phase I of the Amrapali project is likely to be completed by the end of Q1FY27, the company has monetised 5,800 of the 8,200 units via a bulk deal in Phase II.

NBCC has been awarded the Supertech projects and will start work on the same in FY27E. The company is set to launch the Ghitorni (GDV of Rs 8,500 crore) and Gurugram sector-37D (Rs 2,300 crore) projects in FY27E, while the Dubai and Kochi projects are slated for launch by the end of FY26.

Maintains 'Buy' rating with a revised target price of Rs 139 (from Rs 146)
Reported a soft quarter
Slowdown in housing volumes has led to concerns about the pace of execution on the company's 'self-revenue generation' projects.
The Estimated Earnings Per Share for Fiscal Years 2026, 2027, and 2028 have been reduced by 7 per cent, 13 per cent, and 12 per cent, respectively.

NBCC, in its third-quarter results for the financial year 2026, reported a profit of Rs 192.9 crore, up 39.3 per cent compared to Rs 138.47 crore in Q3 FY25. Revenue for the quarter stood at Rs 3,022 crore, marking a 7.6 per cent increase over Rs 2,809 crore last year.

On the operational front, however, margins remained under pressure. EBITDA fell to Rs 113.54 crore, down 21 per cent from Rs 143.73 crore in the same period last year. The EBITDA margin contracted to 3.8 per cent versus 5.1 per cent in Q3 FY25.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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