NCC wins ₹1,286 crore Telangana road construction contract

Infrastructure firm NCC Limited has secured a ₹1,286.03 crore contract to construct a key stretch of Radial Road-2 in Telangana.

The contract, awarded by Hyderabad Growth Corridor Limited, covers the construction of the link road from the Outer Ring Road near Budwel to Nacharam on National Highway 167N. The contract value excludes Goods and Services Tax, according to project disclosures.

NCC has been given a tight window to deliver the project, with a fixed construction timeline of 18 months from the date of commencement.

Strengthening the order book

The new road contract adds further momentum to NCC’s transport division, which remains the primary driver of its business. As of June 2026, the company’s total consolidated order book stood at ₹81,214 crore.

This latest win follows a string of successful bids. In late September 2026, the firm secured a ₹1,076.71 crore water supply project from the Government of Andhra Pradesh. Around the same time, it bagged two separate building and transport orders with a combined value of ₹500.22 crore.

Securing these steady regional infrastructure orders supports NCC's targets for the current financial year. The company is aiming for annual revenue growth of 8% to 10%, while attempting to hold its consolidated operating margins stable between 8.5% and 9%.

Growth in earnings

The contract win comes on the heels of strong financial results for the builder. In the first quarter of fiscal year 2027, NCC’s consolidated revenue from operations grew by more than 12% year-on-year to reach ₹5,812.48 crore, up from ₹5,178.99 crore in the same period last year.

Net profit for the same quarter rose to ₹216.4 crore, compared to ₹192.14 crore a year earlier. Margins also improved significantly, with EBITDA margins rising to 9.37% from 4.95% in the previous year’s first quarter, driven by better project execution.

What lies ahead

While the order strengthens the company's revenue outlook for the next few quarters, meeting the 18-month deadline will require rapid mobilisation. Regional infrastructure developers in India frequently face delays related to land acquisition, environmental clearances, and securing right-of-way permissions.

Analysts also watch commodity prices closely. Fluctuations in the cost of basic materials like cement, steel, and fuel could squeeze profitability, given that these regional road contracts are typically awarded on fixed-rate terms.