CLSA has maintained its ‘Outperform’ rating on NCC Ltd, setting a target price of ₹315, even as the company reported a softer-than-expected performance for Q1FY26.
According to the brokerage, execution declined 7% YoY, and PAT fell 5% YoY, largely due to an early monsoon in Mumbai and a slower-than-anticipated pickup in water projects in Uttar Pradesh. Despite the Q1 miss, CLSA remains optimistic about the second half of FY26, where execution is expected to pick up meaningfully.
The brokerage noted that NCC’s order backlog grew 33% YoY, which supports future visibility. The company has maintained its full-year guidance, signalling confidence in margin and execution improvement in the coming quarters.
CLSA has trimmed its FY26–28 earnings estimates by 2%–5%, but highlighted that NCC remains the most liquid play in India’s water infrastructure sector, with 17% of its FY25 backlog stemming from water-related projects.
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