NCC Ltd, one of India’s top construction and infrastructure firms, saw its shares soar by 6.1% on Wednesday, March 26, reaching ₹217.40 per share on the NSE. This surge followed the announcement that the company had secured two significant orders from Bharat Sanchar Nigam Limited (BSNL), collectively valued at over ₹10,800 crore. The orders, related to BharatNet’s middle-mile network in the Uttarakhand and Madhya Pradesh Telecom Circles, are expected to be executed over the next three years.
Why Did NCC Shares Surge 6%?
NCC shares witnessed a remarkable 6% increase due to the company’s successful bid for two substantial projects from BSNL. These orders, valued at over ₹10,800 crore, have instilled investor confidence and boosted the company’s market value. The surge reflects market optimism regarding NCC’s ability to execute these high-value projects efficiently.
NCC Shares Surge 6% as PSU Bags Two Orders from BSNL Worth Over ₹10,800 Crore; All You Need to Know
NCC Ltd’s recent achievement of securing two orders from BSNL is a significant milestone. The orders include the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network under BharatNet in the Uttarakhand and Madhya Pradesh Telecom Circles. The combined order value exceeds ₹10,800 crore, making this a noteworthy event in the company’s growth trajectory.
A Closer Look at NCC’s New Orders from BSNL
What Are the Details of the Orders?
NCC announced in a stock exchange filing that it had received two advance work orders from BSNL on March 25, 2025. These orders are:
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Uttarakhand Telecom Circle: Order valued at ₹2,647.12 crore (excluding GST).
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Madhya Pradesh, DNH & DD Telecom Circles: Order valued at ₹8,157.44 crore (excluding GST).
The projects involve establishing and maintaining BharatNet’s middle-mile network, aimed at expanding high-speed broadband connectivity across rural India.
What Is BharatNet and Why Is It Important?
BharatNet is a flagship initiative of the Government of India aimed at providing high-speed internet connectivity to all rural and remote villages. The project enhances digital inclusion by extending internet services to underserved regions, bridging the digital divide.
Project Timelines and Execution Period
When Are the Projects Expected to Be Completed?
Both projects secured by NCC from BSNL are expected to be executed over a three-year period, with operations, maintenance, and upgradation continuing during this period. Given NCC’s track record of delivering large-scale infrastructure projects, stakeholders anticipate timely execution.
Significance of These Orders for NCC
Why Are These Orders Crucial for NCC?
These orders add to NCC’s growing portfolio, reinforcing its expertise in executing large-scale telecom infrastructure projects. The combined value of over ₹10,800 crore is expected to contribute significantly to NCC’s revenue in the coming quarters.
Financial Impact on NCC’s Performance
How Will These Orders Impact NCC’s Financials?
The addition of these high-value projects will likely enhance NCC’s order book, providing revenue visibility for the next three years. The successful execution of these projects could improve the company’s profitability, positively impacting future financial results.
NCC Q3FY25 Results: A Quick Recap
How Did NCC Perform in Q3FY25?
NCC reported a 12.5% drop in third-quarter profit, attributed to slower order execution. The company’s consolidated net profit fell to ₹193 crore in Q3FY25, compared to ₹221 crore in the same quarter last year.
Revenue Growth Analysis
Revenue from operations grew by a modest 1.61%, reaching ₹5,345 crore in Q3FY25. However, this growth was significantly lower than the 36.6% growth recorded in the previous year.
Challenges Faced by NCC
Why Did NCC Face Margin Pressure?
Analysts attribute the slowdown in revenue growth to weaker order books in the road engineering, procurement, and construction sectors. Margin pressures and project delays further contributed to the decline in profitability.
Stock Performance of NCC Ltd
How Have NCC Shares Performed Over Time?
Despite the recent surge, NCC shares have had a volatile performance over the past year:
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Last 12 Months: Shares slipped around 16%.
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Last 6 Months: Shares dropped by 33%.
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Last 5 Years: The stock witnessed a staggering jump of around 1,086%, reflecting long-term growth potential.
Investor Sentiment and Market Reaction
Why Did Investor Sentiment Improve?
The announcement of high-value orders from BSNL has sparked renewed investor interest in NCC. With increased revenue potential and positive market sentiment, the stock is expected to remain on an upward trajectory.
NCC’s Policy on Determination of Materiality
What Is NCC’s Policy on Materiality?
As per NCC’s ‘Policy on Determination of Materiality of Events and Information,’ orders/contracts valued at ₹1,000 crore and above are termed as major orders. The BSNL orders, collectively valued at over ₹10,800 crore, fall within this category.
NCC’s Diversified Portfolio and Project Expertise
What Sectors Does NCC Operate In?
NCC Ltd has a diversified portfolio that includes:
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Buildings and Infrastructure
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Transportation and Roads
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Water and Environment
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Electrical and Irrigation Projects
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Mining and Railways
This extensive expertise positions NCC well for future growth and project execution.
Future Growth Prospects for NCC
What Lies Ahead for NCC?
With a robust order book and growing demand for infrastructure projects, NCC’s future looks promising. The successful execution of the BSNL projects will further solidify its position in the infrastructure sector.
Potential Risks and Challenges
What Are the Risks Associated with These Projects?
While the BSNL orders add significant value, potential risks include:
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Execution Delays
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Rising Input Costs
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Regulatory Challenges
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Fluctuations in Market Demand
Government Initiatives Boosting NCC’s Growth
How Do Government Policies Support NCC?
Government initiatives like BharatNet and increased infrastructure spending are expected to provide continued opportunities for NCC, further driving growth.
Analysts’ Take on NCC’s Performance
What Do Analysts Say About NCC?
Analysts remain optimistic about NCC’s long-term growth, citing its strong order book and proven project execution capabilities. However, they caution about margin pressures and potential project delays.
NCC’s Competitors in the Infrastructure Space
Who Are NCC’s Key Competitors?
NCC faces competition from leading infrastructure players such as:
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Larsen & Toubro (L&T)
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Punj Lloyd
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IRB Infrastructure
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GMR Group
Impact of BSNL Orders on NCC’s Share Price
Will NCC Shares Continue to Surge?
With the positive momentum generated by the BSNL orders, NCC shares are likely to maintain upward movement, provided project execution remains on track.
NCC’s Long-Term Strategy and Vision
What Is NCC’s Strategic Focus?
NCC aims to strengthen its position in India’s infrastructure sector by securing high-value orders, maintaining project execution excellence, and exploring new growth opportunities.
Expert Opinions on NCC’s Growth Prospects
What Do Industry Experts Predict?
Industry experts foresee a positive growth trajectory for NCC, driven by its ability to secure and execute large-scale projects effectively.
FAQs
1. Why did NCC shares surge 6% recently?
NCC shares surged 6% after the company announced securing two high-value orders from BSNL worth over ₹10,800 crore.
2. What is the value of the orders secured by NCC from BSNL?
The total order value is approximately ₹10,804.56 crore, with ₹2,647.12 crore allocated for the Uttarakhand project and ₹8,157.44 crore for Madhya Pradesh, DNH & DD Telecom Circles.
3. What does NCC’s order from BSNL involve?
The orders involve designing, supplying, constructing, installing, upgrading, operating, and maintaining the middle-mile network of BharatNet.
4. How will these orders impact NCC’s financial performance?
The BSNL orders are expected to enhance NCC’s revenue and profitability over the next three years, contributing to a stronger financial outlook.
5. How has NCC’s stock performed in recent months?
NCC shares have dropped 16% in the last 12 months and 33% in the past six months but have gained over 1,086% in the last five years.
6. What are NCC’s future growth prospects?
With a strong order book and government initiatives like BharatNet, NCC is well-positioned for sustained growth in the infrastructure sector.
Conclusion
The NCC shares surge 6% after securing two massive orders from BSNL worth over ₹10,800 crore signals a positive outlook for the company. These orders not only bolster NCC’s order book but also enhance its growth potential over the next three years. While challenges such as margin pressures and project delays persist, the overall sentiment remains optimistic, with analysts forecasting sustained growth.
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