# 1. Financial Performance ## A. Key Figures * **Revenue:** **₹3,017 Cr** consolidated (+20%) · **₹2,225 Cr** standalone (+20%) * **PAT:** **₹173 Cr** standalone (+40%) · **₹157 Cr** consolidated (+25%) * **Other Income (H1):** **₹181 Cr** (including ₹44 Cr plot sale, ₹42 Cr dividends) * **Expenses Write-offs (H1):** **₹5 Cr** (vs. ₹102 Cr prior year) ## B. Revenue Growth * **Strong Consolidated Growth:** Robust 20% YoY revenue expansion on both standalone and consolidated bases, driven by execution momentum and PMC fee realization. * **Fee Visibility:** Full collection of **1% marketing fees** expected from next quarter, enhancing near-term revenue quality and predictability. * **Real Estate Recognition:** Recent revenue includes **₹26 Cr** from real estate sales, confirming risk-and-reward transfer; not presales. ## C. Profit Margins * **Divergent Margin Trends:** H1 EBITDA margin improved YoY despite QoQ softness, with temporary pressure from underperforming Amrapali projects now expected to reverse. * **High Incremental Margins:** Real estate segment offers **~5% EBITDA margin** on revenue (excluding other income), with potential for **30–40% PAT margins** in leasing models due to asset retention. * **Leverage in Cost Structure:** Bottom line poised for acceleration as revenue scales, supported by largely **fixed overheads** and reduced write-offs. ## D. Cash Flow * **Sustainable Other Income:** H1 other income of ₹181 Cr largely recurring or strategic, including interest, dividends, and a **one-time ₹44 Cr industrial plot sale**—boosting cash flow without operational impact. * **Cleaner P&L:** Sharp decline in write-offs to **₹5 Cr** from ₹102 Cr reflects improved asset quality and absence of large impairments this year. --- # 2. Order Book & Awards ## A. Key Figures * **Standalone Order Book:** **₹1,12,000 Cr** · **Consolidated Order Book:** **₹1,28,000 Cr** * **New Orders (Q2 FY26):** **₹6,800 Cr** consolidated · **H1 FY26 Total:** **₹10,000 Cr** * **Execution Target (FY26):** **₹12,500–13,000 Cr** · **Net Profit Guidance:** **₹800–900 Cr** ## B. Order Book Composition & Execution * **Redevelopment Dominance:** 60% of order book under redevelopment model, including **₹25,000 Cr** from MAHAPREIT and **₹40,000 Cr** from J&K/Bombay projects, both requiring seed funding. * **Funding Progress:** HUDCO sanctions secured for 3 MAHAPREIT packages, enabling execution momentum versus budgeted/PMC projects. * **Near-Term Revenue Visibility:** **₹44,000 Cr** in projects expected to be operational by March, up from **₹34,000 Cr** currently running. * **Execution Timeline:** Current order book supports revenue visibility over **3–4 years**, with full execution expected in **4–5 years**. ## C. Award Pipeline & Strategic Growth * **Robust Tender Pipeline:** **₹7,000 Cr** in projects pending; **₹4,000–5,000 Cr** in tenders expected this quarter, including a **₹2,200 Cr** project to be awarded next month. * **PSU & Government Pipeline:** Active talks on redevelopment of **HPCL (Bangalore, ~₹1,500 Cr)**, **MTNL/BSNL lands**, **HMT colony**, and **Delhi government colonies** with DDA/MCD involvement. * **Geographic Expansion:** Strategic MOUs signed with **Australian and UAE developers** to enter international markets; evaluating Mumbai PSU sites (National Bicycle, Balmer Lawrie). * **Long-Term Order Outlook:** Management projects order book could reach **₹60,000–70,000 Cr** over next 1–2 years, up from current **₹44,000 Cr** in active pipeline. --- # 3. Project Execution & Progress ## A. Key Figures * **Redevelopment Revenue:** **₹1,021 Cr** in H1 FY26 · **Amrapali Contribution:** **₹1,054 Cr** in H1 FY26 * **Running Projects:** **₹34,000 Cr** portfolio · **Pipeline Additions:** **₹6,000–7,000 Cr** under 7 GPRA * **Project Values:** **Netaji Nagar:** ₹1,450 Cr · **Sarojini Nagar:** ₹8,000 Cr · **Amrapali Phase 2:** ₹17,000 Cr (sales value) ## B. Redevelopment Status * **Core Revenue Driver:** Redevelopment and stalled project resolution delivered strong H1 revenue, led by near-complete execution at Netaji Nagar and Amrapali Phase 1. * **Next-Leg Growth:** Amrapali Phase 2 launch, with **₹17,000 Cr** in sales value, set to materially lift future top-line and profitability. * **Pipeline Depth:** Significant forward visibility with **₹2,000 Cr+** in redevelopment projects underway and additional pipeline in the same corridor. * **Sarojini Nagar Momentum:** Early progress on the ₹8,000 Cr redevelopment, with 2 packages complete and **₹5,000 Cr** of projects in pipeline for award. ## C. Key Project Timelines * **Execution Velocity:** Majority of ₹34,000 Cr project book to be completed in **under 2 years**, with redevelopment tranches taking 4–5 years. * **Near-Term Awards:** **Goa tender** in advanced stage with award expected in current quarter; **Rajasthan** consultants to be finalized imminently, enabling award this year. * **Phase 1 Wrap-Up:** 23 of 24 Amrapali Phase 1 projects completed; final **Adarsh Awas Yojana** unit on track for Q1 FY27 completion. * **7 GPRA Progress:** Type 2 complete, Types 4–6 advancing, with **1,000 units nearing completion** and project on schedule. * **Super-tech Catalyst:** Supreme Court hearing scheduled for **December 8**; decision expected soon, potentially unlocking revenue recognition from **FY27–28**. ## D. Construction Readiness * **Ghitorni Land:** ~21-acre project set for construction start by **end-FY26 or early Q1 FY27**, pending resolution of outstanding matters. --- # 4. Real Estate & Revenue Mix ## A. Key Figures * **Real Estate Revenue (H1):** **₹26 Cr** (sales) * **Consolidated Revenue Split:** **47% (₹61,000 Cr)** PMC · **53% (₹67,000 Cr)** redevelopment * **Owned Real Estate Book Value:** **₹958 Cr** * **Projected Project Revenues:** **₹7,000–8,000 Cr** (Ghitorni) · **₹2,200 Cr** (37D Gurgaon) · **₹9,000–10,000 Cr** (upcoming commercial launch) * **Lease Income Potential:** **₹20–24 Cr/year** (Bhubaneswar) · **₹30 Cr/year** (WTC, current) ## B. Sales vs Leasing * **Strategic Shift to Leasing:** Company pivoted from sales to leasing in Bhubaneswar due to strong IT-sector demand, forgoing **INR 200–250 Cr** in potential sales to capture recurring income. * **No Current Residential Sales in Delhi:** Nauroji Nagar fully sold; no new residential inventory available in the colony this quarter. * **Leasing Momentum:** Existing WTC lease generates **₹5 Cr/month**; future leasing at Ghitorni and other projects contingent on market returns. * **Amrapali Sales Launched:** New residential launch expected to drive positive results in second half of the year. ## C. Segment Contribution * **High-Margin Project Pipeline:** Ghitorni and 37D Gurgaon projects projected to deliver **combined PAT of ~₹5,000 Cr**, signaling major earnings contribution in H2. * **Redevelopment Dominates Revenue Mix:** Slightly more than half of consolidated revenue comes from redevelopment, despite PMC being the core subsidiary activity. * **Revenue Recognition Timing:** 37D revenue to be recognized upon handover; construction start expected by December/January. ## D. Asset Monetization * **Major Commercial Auction Ahead:** A **₹9,000 Cr** commercial project in Delhi to be auctioned in coming months, marking a key near-term monetization event. * **Q4 Launch Planned:** New commercial asset worth **₹9,000–10,000 Cr** to be launched in January, distinct from WTC leasing model. --- # 5. Funding & Capital Structure ## A. Key Figures * **HUDCO Loan Sanctions:** **₹14,000 Cr** for NBCC-managed projects (**₹11,000 Cr** for Naveen Nagpur Phase I, **₹3,000 Cr** for MAHAPREIT) * **Seed Funding:** **₹481 Cr** held (**₹465 Cr** for Amrapali, **₹16.5 Cr** for DTC) ## B. Loan Sanctions * **Client-Led Financing Model:** NBCC does not take on debt; loans are sanctioned to clients like MAHAPREIT and J&K, with work commencing soon, expected to **boost topline**. ## C. Seed Funding * **Targeted Project Liquidity:** Seed capital is strategically allocated, with the vast majority directed toward the Amrapali resolution project. ## D. Client Financing * **No NBFC Plans:** Company sees no need to establish an NBFC given strong access to HUDCO, its sister entity, which is effectively enabling project financing. --- # 6. Risks & Approvals ## A. Key Figures * **Project Exposure:** **₹40,000 Cr** in delayed state government projects (J&K, RICCO) ## B. Regulatory Delays * **Significant Approval Risks:** Major project delays in J&K and Kerala due to complex state-led redevelopment models and pending forest clearances, impacting a **₹40,000 Cr** pipeline. * **Catalyst Ahead:** Supreme Court decision on Super-tech projects expected 8th December could unlock new portfolio additions. * **Write-Off Discipline:** No repeat of last year’s ₹100 Cr write-off; current policy emphasizes ECL-based asset evaluation with cautious provisioning. ## C. Funding Uncertainty * **Provisioning Volatility:** Future write-offs remain contingent on asset quality reviews and ECL assessments, with management flagging potential increases based on evolving financial policies. --- # 7. Guidance & Outlook ## A. Key Figures * **Revenue Guidance:** **₹14,000–15,000 Cr** FY26 (consol) · **₹64–67 Cr** real estate FY26 · **₹100 Cr** real estate FY27 · **₹800 Cr** real estate FY28 * EBITDA Margin Guidance: 6–6.5% FY26 · double-digit expected FY27–28 ## B. Revenue Targets * **Civil Revenue Momentum:** FY26 civil revenue on track despite H1 shortfall, with **strong H2 seasonality** expected to drive peak realization in Q3–Q4. * **Real Estate Reset & Upside:** Downward revision in near-term real estate guidance reflects strategy shift, but **material revenue inflection expected from FY27**, led by Amrapali, RIICO, and new tenders worth **₹4,000–5,000 Cr**. * **Major Projects Pipeline:** **37D (Gurugram)** and **Ghitorni (Delhi)** set to become key value drivers, with **₹800 Cr** and **₹5,000 Cr** revenue potential respectively. ## C. Margin Projections * **Margin Trajectory:** Near-term EBITDA margins constrained at **4–5%**, but structural improvement expected as high-margin real estate projects ramp, enabling **double-digit EBITDA margin target by FY27–28**. ## D. Long-Term Goals * **Aggressive Scaling Path:** Management targets **₹18,000 Cr** revenue by FY27–28 and has set a bold **₹25,000 Cr top-line vision for FY28**, underpinned by project awards and redevelopment momentum.