Revenue from operations fell 6% from a year earlier to ₹2,259.5 crore.
The company’s operating performance, however, improved significantly. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 39% to ₹155 crore from ₹111.5 crore a year earlier.
The EBITDA margin — a measure of how much operating profit the company makes from every rupee of revenue — improved to 6.86% from 4.66%.
In other words, NBCC generated more operating profit from a smaller revenue base during the quarter.
NBCC announces interim dividend
The Navratna public sector company, which operates under the Ministry of Housing and Urban Affairs, also declared its first interim dividend for FY27 at ₹0.15 per share.
NBCC has fixed August 17 as the record date for determining shareholders eligible for the dividend. The payout will be made within the timeline prescribed under the Companies Act.
NBCC takes first step towards proposed REIT
Separately, NBCC’s board on August 11 gave in-principle approval to set up a wholly owned subsidiary that would act as a Special Purpose Vehicle (SPV) for activities related to a proposed Real Estate Investment Trust (REIT).
A REIT allows income-generating real estate assets to be pooled into an investment vehicle in which investors can buy units, somewhat like investing in a mutual fund.
The proposed subsidiary will require approvals from the Ministry of Housing and Urban Affairs and the Department of Investment and Public Asset Management (DIPAM).
Project management remains biggest business
Project Management Consultancy (PMC) remained NBCC’s largest business during the quarter, generating revenue of ₹2,155.7 crore. This was lower than ₹2,269.5 crore a year earlier.
Revenue from the company’s real estate business more than doubled to ₹53.9 crore from ₹22.4 crore.
Its Engineering, Procurement and Construction (EPC) business, however, saw revenue decline sharply to ₹35.9 crore from ₹98.3 crore a year earlier.
Unallocated segment revenue stood at ₹14 crore, compared with ₹2.3 crore in the year-ago quarter.
HSCC merger also underway
NBCC is separately moving ahead with the merger of its wholly owned subsidiary HSCC (India) Ltd. into the company.
NBCC’s board approved the merger scheme on July 14, with the company subsequently filing details of the proposed arrangement on July 18.
HSCC specialises in healthcare infrastructure consultancy and project management, including preparing detailed project reports for hospitals in India and overseas. Its clients have included organisations such as the World Bank and World Health Organization.
The merger is aimed at bringing NBCC’s healthcare and broader infrastructure consultancy operations under a single corporate structure.
NBCC shares ended 1.41% lower at ₹93.51 on August 11.
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