Market Performance
NCC shares tumbled sharply on Thursday, February 19, 2026, hitting a fresh 52-week low. The stock fell as much as 9.85% on the National Stock Exchange (NSE) to ₹135 per share. This marks the steepest intraday fall in over a year, reflecting investor concern over the recent NHAI action.
Even with this dip, NCC’s stock has seen some marginal recovery month-to-date after consecutive losses from November 2025 to January 2026, during which it shed roughly 34% of its value.
Main News
The sudden fall comes after the National Highways Authority of India (NHAI) issued a two-year debarment order against NCC Limited and its step-down subsidiary, OB Infrastructure Limited (OBIL).
- The order bars NCC and OBIL from participating in any NHAI tenders, bids, or RFPs.
- This includes roles as Concessionaire, Contractor, EPC Contractor, O&M Contractor, O&M Agency, or Consortium Member.
- The ban is effective from February 17, 2026, for a full two-year period.
The debarment relates to a highway project in Uttar Pradesh undertaken by OBIL under a 2006 BOT (Annuity) concession agreement. OBIL maintains that project delays were caused by NHAI failing to hand over land on time and other contractual breaches.
The company had initiated arbitration proceedings and received a favorable award in November 2024. NHAI, however, has challenged this award in the Delhi High Court. Additional disputes regarding the project are also under arbitration.
OBIL has highlighted that the debarment was imposed:
- While arbitration proceedings are ongoing
- After the concession period had ended
- Without allowing OBIL to be heard
The company intends to legally challenge the NHAI order.
Company Details
Despite the debarment, NCC clarified there is no immediate financial or operational impact on ongoing projects or existing orders. However, the effect on future tenders is uncertain at this stage.
Key financial highlights as of Q3 FY26:
- Order Book: ₹79,571 crore, with 22% in the transportation segment
- Revenue (Standalone): ₹4,082 crore, down 14% YoY
- EBITDA: ₹328 crore
- PAT: ₹82 crore, up 2% YoY
- Net Debt: ₹2,830 crore
The company’s order book grew 38% year-on-year in Q3 FY26, signaling strong underlying project execution despite revenue pressure.
Summary
NCC’s stock faced a sharp decline after NHAI’s two-year tender ban, largely linked to delays in a Uttar Pradesh highway project managed by its subsidiary OBIL. The company insists that ongoing projects remain unaffected, and legal recourse is underway to challenge the debarment.
For investors and market watchers, the NCC share price movement highlights the immediate impact of regulatory and contractual disputes, even when core operations remain stable. The stock now trades at its 52-week low of ₹135, reflecting market caution over near-term tender restrictions.
Source: Livemint
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