NBCC Q3 Results: Net Profit Surges 38% to ₹19,660 Cr on Kochi Project Reversal

Mumbai:  NBCC (India) Limited reported a 38% year-on-year surge in standalone net profit at ₹19,660.26 crore for the December 2025 quarter, driven by reversal of ₹8,015.53 crore write-down related to its Kochi group housing project following a Supreme Court order.

The board had earlier declared a second interim dividend of ₹0.21 per share (face value ₹1 each) for FY26 in November 2025, which was paid on December 9, 2025.

Key Highlights of NBCC Q3 FY26 Results (Standalone):

Net Profit: Surged 38% to ₹19,660.26 crore, against ₹14,277.56 crore in Q3 FY25. The profit includes exceptional reversal of ₹8,015.53 crore related to Kochi project.

Revenue from Operations: Increased 2.8% to ₹2,08,753.75 crore, against ₹2,02,988.14 crore in the corresponding quarter last year.

Total Income: Rose to ₹2,10,057.08 crore from ₹2,05,930.61 crore YoY.

Exceptional Items: Net exceptional gain of ₹8,015.53 crore during Q3, primarily due to reversal of inventory write-down for Kochi project following Supreme Court's November 18, 2025 order.

Earnings Per Share (EPS): Stood at ₹0.73 for the quarter (not annualised), against ₹0.53 in Q3 FY25.

Also Read: ONGC Q3 Results: Net Profit Surges 23% to ₹11,946 Cr, Declares ₹6.25/Share Dividend

Nine-Month Performance (April-December 2025):

Net Profit: Jumped 41% to ₹58,010.71 crore, against ₹41,058.27 crore in 9M FY25.

Revenue from Operations: Grew 6% to ₹5,84,155.85 crore, against ₹5,51,172.56 crore.

EPS: ₹2.15 for 9M FY26 vs ₹1.52 in 9M FY25.

Segment Performance (Q3 FY26 Standalone):

Real Estate segment profit surged due to reversal of Kochi project write-down.

Major Project Updates:

Kochi Group Housing Project – ₹8,015 Cr Write-Down Reversed:

The company had constructed a group housing project at Kochi, Kerala, with total cost of ₹8,696.58 lakh. Sale of units was put on hold due to non-availability of Environmental Clearance (EC). Following Supreme Court order dated May 16, 2025, the company had written down inventory by ₹8,015.53 lakh in FY25.

On November 18, 2025, the Supreme Court recalled its earlier judgment and restored the original writ petitions. An independent valuer assessed Net Realisable Value at ₹9,499.21 lakh. Accordingly, the earlier write-down of ₹8,015.53 lakh has been reversed as exceptional item during Q3 FY26.

NBCC Green View, Gurugram – Structural Cracks Settlement Ongoing:

The company's residential project at Sector 37D, Gurugram exhibited structural cracks, leading to full evacuation. Cumulative provisions/write-offs till December 31, 2025 stand at ₹46,882.51 lakh.

During Q3 FY26:

• Spent ₹298.04 lakh towards buyback of flats/units and refund of advances

• Written down inventory by ₹193.30 lakh

• Incurred ₹10.29 lakh towards various fees (capitalised to land inventory)

• Land value attributable to unsold/buy-back units: ₹9,150.28 lakh

• Salvage value of construction portion: ₹1,537.74 lakh

A recovery suit of ₹75,000 lakh filed in Delhi High Court against Ramacivil India Construction. 24 litigations ongoing. Quantifiable claims of homebuyers/allottees and contractors at ₹6,623.63 lakh as contingent liability.

Alwar Project – Aravali Apartments:

E-auction conducted on November 11, 2025 resulted in firm sales commitment for ₹5,855 lakh on "As Is Where Is" basis. Provision of ₹1,256.44 lakh created up to September 30, 2025 has been reversed during Q3.

Naya Raipur Land – Lease Deed Pending:

Land bank includes ₹2,552.39 lakh towards group housing plot at Naya Raipur. Lease deed yet to be executed between owners association and NRDA. Construction yet to start.

Faridabad Land – Conveyance Deed Pending:

Land bank includes ₹13,178.41 lakh towards group housing plot at Faridabad. Execution of conveyance deed pending for want of Environment Clearance. Provision of ₹1,073.66 lakh created towards reduction in Net Realisable Value.

NBCC Plaza, Pushp Vihar – Project on Hold:

Company paid ₹3,021.78 lakh to L&DO for additional FAR. Project on hold as MCD demanding ₹3,224.45 lakh towards additional FAR charges. Complete provision of ₹954.43 lakh created.

Tax Related Developments:

DVAT Demand: ₹40,480.01 lakh demand set aside by Hon'ble Appellate Tribunal on November 10, 2022 and remanded for recalculation. No further order received. Contingent liability not ascertainable.

GST Demand: ₹9,072 lakh demand for FY 2017-18 set aside by Hon'ble High Court on December 9, 2025.

Consolidated Performance:

Consolidated Net Profit: ₹19,721.52 crore in Q3 FY26 vs ₹14,242.76 crore (▲38% YoY)

Consolidated Revenue from Operations: ₹3,02,239.36 crore vs ₹2,80,906.67 crore (▲7.6%)

Consolidated Profit attributable to owners: ₹19,299.55 crore vs ₹13,847.55 crore

Consolidated EPS: ₹0.71 vs ₹0.51

Subsidiaries & Joint Ventures:

The consolidated results include five subsidiaries and three joint ventures. Key subsidiaries:

• HSCC (India) Limited

• Hindustan Steelworks Construction Limited

• NBCC Services Limited

• NBCC DWC LLC (overseas)

• NBCC Overseas Real Estate LLC (overseas, w.e.f. April 23, 2025)

Joint Ventures include Real Estate Development & Construction Corporation of Rajasthan Limited, NBCC-Mahavir Hanuman Group, and NBCC-Ahinsa Builders.

Auditors' Emphasis Matters:

D K Chhajer & Co., statutory auditors, issued unmodified conclusion but drew attention to:

1. Naya Raipur land – lease deed pending

2. Faridabad land – conveyance deed pending, provision created

3. NBCC Plaza project – stuck due to dual FAR demand

4. Kochi project – reversal of write-down post Supreme Court order

5. Green View project – ongoing settlements, provisions, litigations

6. DVAT demand – remanded, contingent liability not ascertainableAdditional emphasis for subsidiary HSCC India:

• Trade receivables and client balances subject to confirmation

• Projects completed but not financially closed (₹14,988.16 lakh assets, ₹15,059.43 lakh fixed deposits pending refund)

• Noida plot extension fee provided (₹98.23 lakh)

Other Key Notes:

New Labour Codes: The company assessed financial impact of New Labour Codes effective November 21, 2025. Impact, though not material, has been recognised in Q3 results.

Dubai Branch: Incorporated a branch in Dubai (Mainland) on January 7, 2026 for project management services.

Rental Income Classification: Rental income from leasing activities now classified under Revenue from Operations (earlier under Other Income). Comparative figures regrouped.

Board Composition: The Board does not comprise requisite number of Independent Directors including Independent Woman Director as required under Regulation 17 of SEBI LODR Regulations.

Dividend:

The Board had declared second interim dividend of ₹0.21 per share (face value ₹1 each) for FY26 in its meeting held on November 13, 2025. The dividend was paid on December 9, 2025.

Management Commentary:

*"NBCC has delivered strong operational performance in Q3 FY26 with significant exceptional gain from reversal of Kochi project write-down following Supreme Court's favorable order. Our PMC segment continues to show steady growth, and we are making progress on resolution of stressed real estate projects including Green View and Alwar.*

The reversal of ₹8,015 crore provision for Kochi project reflects our commitment to transparent accounting and appropriate recognition of asset values as per judicial directions. We continue to engage with all stakeholders for resolution of pending matters," said an official spokesperson.

About NBCC (India) Limited:

NBCC (India) Limited is a Navratna Central Public Sector Enterprise under the Ministry of Housing and Urban Affairs, Government of India. The company is engaged in project management consultancy, real estate development, and engineering procurement construction services across India and internationally.

Stock Performance:

NBCC shares closed at ₹148.75 on NSE, up 1.2% from previous close.

Disclaimer: The information presented in this article is based on official filings made by NBCC (India) Limited with the Bombay Stock Exchange and National Stock Exchange, and the unaudited financial results for the quarter and nine months ended December 31, 2025.