NCC Share Price Surges 5% on Securing ₹2,129.60 Crore Infrastructure Order

NCC Limited has been awarded a significant infrastructure development contract worth ₹2,129.60 crore (excluding GST) by the Andhra Pradesh Capital Region Development Authority (APCRDA). The contract formalised through a Letter of Acceptance dated 19 March 2025, involves a wide range of development works in the Zone-12 villages of Amaravati Capital City.

The scope of the project includes the construction of roads, drainage systems, water supply infrastructure, sewage networks, utility ducts for power and ICT, reuse water pipelines, and avenue plantation. The order is classified as a “Major Order”, highlighting its strategic importance.

Project Timeline and Execution

The contract is set to be executed over a total period of five years. The first 3 years will be dedicated to construction, followed by a 2-year defect liability period (DLP) to address any post-construction issues. The project has been awarded on a lump sum percentage tender basis, meaning payments will be structured based on pre-determined cost estimates rather than direct itemised billing.

NCC’s Recent Order Wins and Financial Performance

This order follows NCC’s earlier contract win in February 2025, when the company secured a ₹218.82 crore transportation project from a state government. The transportation project is scheduled to be completed within 36 months.

Financially, NCC reported a 12.5% year-on-year (YoY) decline in net profit for Q3FY25, with earnings standing at ₹193.2 crore. Despite the dip in profitability, the company’s revenue from operations grew by 1.6%, reaching ₹5,344.5 crore compared to ₹5,260 crore in the corresponding quarter of the previous fiscal year.

However, at the operating level, EBITDA declined by 16.6%, falling from ₹504.4 crore in Q3FY24 to ₹420.9 crore in Q3FY25.

NCC Share Price Surge Despite YTD Decline

Following the announcement of this significant order win, NCC’s share price jumped nearly 2.88% to ₹202.39 as of 10:12 AM on March 20, 2025. Despite this rally, the stock has faced downward pressure in the broader market, registering a 24.5% decline in 2025 so far.

Conclusion

NCC’s latest order win marks a significant addition to its infrastructure portfolio, reinforcing its presence in large-scale urban development projects. While the company has witnessed fluctuations in profitability and stock performance, its recent contract acquisitions could contribute to long-term growth and operational stability.

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