Shares of NCC Limited fell sharply by over 6% after the company disclosed that it has received a debarment order from the National Highways Authority of India (NHAI), restricting it from participating in new tenders floated by the authority for the next two years.
In an exchange filing, the infrastructure major stated that both NCC and its step-down subsidiary, O B Infrastructure, have been barred from bidding for any new tenders or contracts issued by NHAI. The debarment has come into effect from February 17, 2026, and will remain valid for a period of two years.
The order prevents NCC and its subsidiary from participating in future highway projects awarded by NHAI during the debarment period. As NHAI is one of the largest road project awarding authorities in India, the restriction is likely to weigh on investor sentiment and future order inflows from the highways segment.
Market participants reacted negatively to the development, triggering a sharp sell-off in the stock. The highways segment forms a significant part of India’s infrastructure push, and exclusion from NHAI tenders may limit fresh business opportunities for the company in this vertical over the next two years.
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