NBCC secures six West Bengal urban projects

NBCC (India) Limited has signed six MoUs with the West Bengal government for urban redevelopment and infrastructure projects. The projects cover College Street redevelopment, China Town in Tangra, Chandannagar riverfront development and river ghats in Howrah and Nabadwip. The company will also conduct a feasibility study for government housing redevelopment in the BMC area and construct public toilets across urban locations through the State Urban Development Agency. The projects will be executed on a deposit work basis, with NBCC receiving actual project costs plus agency charges of 5%, excluding GST. Individual project values are yet to be disclosed. The latest developments come alongside strong Q2 FY27 results. Net profit increased 33.8% YoY to ₹206 crore, while revenue grew 16.5% to ₹3,396 crore. EBITDA more than doubled to ₹225.5 crore, taking margins to 6.6% from 3.6% a year ago. The company also declared a second interim dividend of ₹0.25 per share, with November 11, 2026, as the record date. My view: The improvement in EBITDA and margins is more significant than the revenue growth alone, as it indicates better operating profitability. The six MoUs also expand NBCC's project pipeline, particularly in urban redevelopment and public infrastructure. However, these agreements should not be treated as confirmed revenue visibility yet. The actual project sizes, execution timelines and conversion into awarded work will determine their financial contribution. The 5% agency fee provides an additional income stream, but the scale of the benefit depends on total execution value. NBCC shares closed at ₹80.30, down 0.40%, and have declined 34.23% in 2026. I would watch for project cost disclosures, fresh order inflows and sustained margin improvement before turning constructive on the stock. Stance: Monitor for execution progress and earnings consistency before taking a fresh view. NBCC