NCC Shares Rise 2.6% as Company Secures ₹2,090.5 Crore Bihar Reservoir Project

Mumbai, September 16, 2025 – The share of NCC Limited increased by as much as 2.64% at the start of trading on Tuesday. The rally came in after the company announced that it had received a new services contract from the Water Resources Department of Bihar worth ₹2,090.5 crore.

NCC Limited, founded in 1990 and beginning public trading in 2003, is a significant name in India’s infrastructure and construction industry. The company is a member of the Nifty Smallcap 50 index and has capabilities in urban infrastructure, irrigation, roads, and power. The current order adds to its credibility as a trusted partner for major Government-near projects.

Share Price Snapshot

The share price opened at ₹216.15, which is ₹4.05 (1.91%) higher than its previous close of ₹212.10. The stock opened at a higher price of ₹222.00 and has so far made an intraday high of ₹222.31 and an intraday low of ₹215.25. With a current market capitalization of ₹13,687.68 crore, the trading volume has exceeded 33 lakh shares with a turnover of ₹72.77 crore.

Major Order Win

The rally followed NCC’s announcement that it received a letter of award for the implementation of the Barnar Reservoir Scheme located in Jamui District, Bihar. The award is for the construction of a large reservoir, dam structures, irrigation channels, and ancillary works. The estimated value of the contract is ₹2,090.5 crore (excluding GST) and is expected to enhance NCC’s order book further.

Project Timeline and Scope

The contract outlines a 30-month construction period followed by 60 months of defect liability. The scope includes reservoir development, not only of the core infrastructure but also of irrigation support systems, which will add value by utilizing improved water management in the area. As NCC indicated, no related third parties are acting as part of the transaction, ensuring a clear and transparent transaction.

Outlook

Winning the Bihar project strengthens NCC’s growth prospects, which should boost investor confidence. While in terms of executing projects, the challenges remain in large-scale infrastructure works, the sizeable order inflow strengthens revenue visibility. It presents a compelling opportunity for medium-term investors.

REF: https://nsearchives.nseindia.com/corporate/NCC_15092025162724_Reg_30_Letter.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations