NBCC

looks solid in revenue growth… until you check its unrealised income🔍

has received work order worth around Rs 498.30 crore (Excl. GST) from Damodar Valley Corporation for construction of Integrated Township at Chandrapura Thermal Power Station, Chandrapura, Jharkhand. The said work is in the normal course of business of the Company. NBCC is one of the few public sector companies engaged in the business of project management consultancy services for civil construction projects (PMC), civil infrastructure for power sector and real estate development. But here's a catch. Ever wondered why the market is not discounting a good company like NBCC to a higher value? The reasons lies in its unbilled revenues/ unbilled overhang. NBCC’s unrealised/unbilled revenue ballooning to ₹7,737 crore and write-offs allegedly jumping from ₹3,000 crore from FY24 to ₹25,000 crore to FY25, signal stress in project recovery and overly aggressive revenue recognition. For now, the Centre is only supporting NBCC through continued project allocations and policy backing for redevelopment work. But such a huge gap between work done, cash received, and write-offs is a major red flag on earnings quality, working capital, and execution discipline.