NBCC India Ltd Management Discussions

Economic Overview

Global Economy

In CY 2025 the global GDP growth remained stable at around 3.5%1, despite ongoing geopolitical tensions, changing trade dynamics and periods of financial market volatility. Growth was supported by steady consumer demand, improving supply chain conditions, and continued investments in technology and digital infrastructure. Inflationary pressures moderated during the year, with global inflation recorded at 4.1% in CY 2025 and declining from 5.8% in CY 2024.2 Economic performance varied across regions. Advanced economies expanded by approximately 1.9% in CY 2025, while emerging market and developing economies grew at a stronger pace of about 4.5%, supported by robust domestic demand and sustained infrastructure investments. Among major economies, the United States maintained steady growth, supported by technology investment and supportive fiscal measures. The euro area recorded moderate growth of around 1.4% in CY 2025, with structural headwinds continuing to constrain economic activity. Emerging and Developing Asia remained a major contributor to global economic growth, recording regional growth of 5.6% in CY 2025.

Infrastructure and construction expenditure remained an important component of economic activity during CY 2025. Along with this, the global construction industry grew during the reporting year. Public expenditure on transportation networks, housing, energy infrastructure and urban development sustained project activity, while investment in manufacturing capacity and digital infrastructure added to construction demand. Asia-Pacific and other emerging markets accounted for a sizeable share of activity, backed by urbanisation and large public infrastructure programmes.

Note: the same content has been written in the global construction industry section, so removing it to remove repetition

Real estate markets operated against a gradually improving financing environment as inflation moderated and monetary conditions eased across several economies. Investment activity remained selective, with demand concentrated across housing, logistics, data centres and urban redevelopment. Government expenditure on affordable housing, public assets and city infrastructure also provided a pipeline of projects across markets where demographic growth and urbanisation are increasing requirements for built infrastructure. In addition to this, the US imposed tariffs across the global economy, resulting in significant disruptions to international trade and creating supply chain bottlenecks. Along with this, the Russia-Ukraine war continued to disrupt global trade by affecting supply chains. The conflict further intensified, and CY 2026 commenced with heightened geopolitical tensions arising from the Middle East crisis. The conflict in the region escalated significantly, restricting vessel movement and turning the waterway into a high-risk zone. The closure of the Strait has significant implications for global gas trade. Additionally, a powerful El Ni?o event also appears to be developing in the tropical Pacific Ocean. Early forecasts indicate that it can persist well into 2027, potentially altering global weather patterns and increasing the risk of economic disruption. However, the global economic outlook remains broadly stable despite persistent geopolitical uncertainties and adjustments in global trade patterns. Global GDP growth is projected to remain at around 3.0% in CY 2026 before moderating slightly to 3.4% in CY 2027. Continued investment in technology-led sectors, improving financial conditions and sustained infrastructure development across several economies are expected to support growth. Global inflation is projected to decline further to 3. 9% by CY 2027 as supply constraints continue to normalise and commodity prices stabilise. While risks related to geopolitical tensions, trade fragmentation and elevated public debt levels remain, the global economy is expected to maintain moderate growth momentum over the medium term.

On the supply side, real Gross Value Added (GVA) is estimated to grow by 7.9%, supported by strong performance in the services sector. Real estate and housing accounted for a sizeable share of domestic economic activity, with the ‘real estate and ownership of dwellings sector contributing around 7% of annual GVA, on average, over the past decade. Housing demand benefited from favourable affordability conditions and easing inflation, with average sales volumes staying above FY 2022–24 levels. Infrastructure development remained a key priority for the Government of India, providing impetus to construction, real estate and project management activity. Major initiatives included the expansion of national highways, development of high-speed rail corridors, investment in logistics infrastructure and large-scale urban development projects. Public investment in housing, urban infrastructure and redevelopment also contributed to construction demand, supported by rapid urbanisation and growing requirements for public and commercial infrastructure. These developments expanded the project pipeline for organisations engaged in infrastructure development, redevelopment and project management consultancy services. The Strait of Hormuz crisis, driven by escalating geopolitical tensions in the Middle East, had a direct and severe impact on Indias energy security. It resulted in significant upward pressure on the prices of oil and natural gas, including LNG and LPG, while also disrupting global energy flows and increasing cost pressures.

Considering Indias dependence on the region, the impact on the natural gas sector was significant. As Indias LNG imports being sourced from the Middle East, supply disruptions were substantial and procurement costs increased accordingly.

In response to these constraints, the Government of India directed the diversion of domestic natural gas and regasified LNG to priority sectors. This measure involved overriding existing gas sales agreements to maintain continuity of supply.

Additionally, during the reporting year, India faced the imposition of higher tariffs by the US during the reporting year. However, India remained engaged in discussions with the US on the matter. Looking ahead, Indias economic outlook remains favourable, supported by sustained public investment, increasing private sector participation and rapid urbanisation. Continued emphasis on infrastructure creation and industrial capacity expansion is expected to strengthen demand across infrastructure-linked industries. Supported by strong macroeconomic fundamentals and policy support, the construction and project management consultancy sector is likely to witness sustained growth opportunities in the coming years.

Industry Overview

Construction and Real Estate Industry

Global 6

The global construction market was valued at approximately $16.45 trillion in CY 2025, increasing from $15.78 trillion in CY 2024, reflecting steady growth across the sector. Growth was supported by sustained government spending on transportation infrastructure, energy transition projects and housing development, along with increasing investment in manufacturing facilities and digital infrastructure. Emerging economies, particularly in the Asia-Pacific region, continue to account for a significant share of global construction activity, driven by rapid urbanisation and large-scale infrastructure development programmes. These trends continue to generate opportunities for infrastructure development and project management companies engaged in major public sector and urban development projects, including organisations providing engineering consultancy and project execution services. Looking ahead, the global construction sector is expected to maintain a positive growth trajectory, supported by continued infrastructure investment, urbanisation and increasing demand for sustainable and energy-efficient infrastructure. Government initiatives focused on strengthening transportation networks, expanding renewable energy capacity and improving digital connectivity are expected to further support market growth. In addition, the growing need for resilient infrastructure, modern logistics networks and integrated urban development is likely to sustain construction activity worldwide. These structural drivers are expected to support continued demand for construction services, engineering expertise and project management capabilities across the global infrastructure sector.

India

Indias construction and infrastructure sector witnessed steady expansion during FY 2025–26, supported by sustained investments in infrastructure development and capacity creation. Investment activity remained strong, with Gross Fixed Capital Formation (GFCF) estimated to grow by 8.2%, reflecting continued investments in infrastructure assets, industrial capacity and large public projects. Financing availability also supported sectoral growth, with overall credit from all sources increasing by 13.8% year-on-year. Government expenditure continued to be a key driver of construction demand, with public capital expenditure reaching 11.0 lakh crore in FY

2025–26, focused on infrastructure creation, logistics networks and urban development across the country. Over the past year, Indias infrastructure construction sector has been driven by high public capital expenditure, a strategic shift towards efficiency and monetisation, and the rapid adoption of green and digital construction practices. The construction sector is now gradually moving from a phase of recovery to one of rapid execution. The industry is increasingly defined by three key pillars, digital transparency, multimodal efficiency and mandatory sustainability. The construction industry continues to remain a cornerstone of Indias economic progress, serving as both a strong growth driver and a reliable indicator of the countrys economic momentum.

The outlook for the sector remains positive, supported by sustained public infrastructure spending and increasing investment activity. Government capital expenditure is proposed to rise to 12.2 lakh crore in FY 2026 27, with continued focus on infrastructure expansion and timely execution of projects.7 In addition, rising demand for urban infrastructure, logistics facilities and public utilities is expected to support construction activity and strengthen project pipelines across sectors. The Union Budget 2026–27 provides a strong impetus to the infrastructure sector, positioning it as one of the seven strategic and frontier pillars supporting Indias long-term economic growth. The construction sector continues to stand at the forefront of this momentum and is expected to emerge as the worlds largest market in the coming years. At the same time, prolonged geopolitical tensions, global trade volatility and climate-related risks may moderate the

Policy Support and Government Initiatives

Pradhan Mantri Awas Yojana – Urban (PMAY-U) 2.0

The Government approved an additional 2.88 lakh houses under PMAY-U 2.0, taking total sanctions to 13.61 lakh units. The programme also includes the development of 12,800 rental housing projects. Notably, 96% of the houses have been allotted to women, reinforcing the programmes focus on inclusive urban housing and social empowerment.9

SmartCitiesMissionandUrbanInfrastructureDevelopment

The Government continues to drive urban transformation through the Smart Cities Mission, supporting projects such as urban mobility systems, smart utilities and public infrastructure. Covering 100 cities, the programme has undertaken 8,067 projects with a total investment of 1.64 lakh crore, of which around 94% have been completed, strengthening urban infrastructure and service delivery across cities.10

Pradhan Mantri Gram Sadak Yojana (PMGSY-IV)

The Government approved PMGSY-IV with an outlay of 70,125 crore for the construction of approximately 62,500 km of all weather roads, aimed at connecting nearly 25,000 previously unconnected habitations. The programme is expected to improve rural accessibility, enhance regional connectivity and support socio-economic development in rural areas.11

Housing for All – Urban

Affordable housing continues to remain a key policy priority under the Housing for All initiative. The programme focuses on the development of durable pucca houses equipped with essential services, thereby improving urban living conditions while supporting sustained demand within the housing and construction sectors.

National Infrastructure Pipeline (NIP)

Envisions a coordinated, long-term project pipeline with substantial budgetary backing that ensures timely execution across sectors of housing, transport, water supply and institutional infrastructure.

Simplifying Business and Real Estate Regulatory Authority (RERA) Implementation

Transparent regulatory mechanisms such as the Real Estate (Regulation and Development) Act (RERA) enhance accountability, buyer protection and investor confidence.

Regional Connectivity Scheme (RCS)-UDAN (Ude Desh ka Aam Nagrik)

The RCS-UDAN was conceptualised under the National Civil Aviation Policy (NCAP), with a 10-year objective of connecting tier 2 and tier 3 cities, hence improving regional tourism, healthcare access and trade in India.

Company Overview

NBCC (India) Limited is a Navratna Central Public Sector Enterprise (CPSE) functioning under the Ministry of Housing and Urban Affairs (MoHUA). Since its establishment in 1960, the Company has built extensive capabilities in project management and construction consultancy, supporting the development of large-scale infrastructure projects. Its operating model entrusts physical execution to contractors, thereby enabling efficient project delivery and risk management. Over the years, NBCC has played a significant role in government-led infrastructure and urban development initiatives. The Company has been actively involved in land redevelopment projects, the completion of stalled real estate developments and the construction of institutional and healthcare infrastructure.

NBCC operates through three principal business segments—Project Management Consultancy (PMC), Engineering, Procurement and Construction (EPC) and Real Estate. Through these segments, the Company provides services to government departments, public sector undertakings and institutional clients across India, along with a presence in select international markets. Its redevelopment and consultancy-led model enables the execution of large urban infrastructure projects while ensuring strong operational visibility. The projects undertaken during the reporting year are diversified across various sectors such as Urban Development, Housing Redevelopment, Industrial Township, Government Infrastructure, Institutional and Tourism/Wildlife. They reflect the Companys strong future revenue pipeline, enhanced business growth visibility, improved market position, and proven execution capability. The Company also focuses on cost control, timely procurement, regular monitoring of project progress, and adherencetoqualityandsafetystandards,whichhelpsinavoiding delays and cost overruns. In addition, NBCC continuously monitors market conditions and regulatory requirements and leverages its experience and project management systems to ensure timely completion and smooth delivery of projects. As of March 31, 2026, NBCCs consolidated order book stood at 1,27,820 crore, ensuring sustained revenue visibility for the years ahead. The Companys execution capabilities are further strengthened by its key subsidiaries, HSCC (India) Ltd., Hindustan Steelworks Construction Limited (HSCL) and NBCC Services Limited (NSL). These subsidiaries enable NBCC to undertake specialised projects across sectors such as healthcare infrastructure, steel plant construction and facility management.

The Project Management Consultancy (PMC) segment continuestobetheprincipalsourceoftheCompanysrevenue. Through this segment, NBCC renders project management services for a wide range of infrastructure developments, including hospitals, educational institutions, office buildings, residential complexes, border infrastructure, and projects related to environmental and water management, such as drainage and water supply systems.

To support the effective execution of self-financing projects and mitigate associated risks, the Company undertakes detailed planning prior to project commencement. This includes feasibility studies and evaluation of financial viability. In addition, projects are generally implemented in phases, which facilitates improved monitoring, control, and timely execution. A key feature of this segment is the redevelopment model, wherein projects are undertaken jointly by government authorities and NBCC. This model has enabled the Company to contribute to several major government redevelopment projects, including those at Nauroji Nagar, Netaji Nagar, Sarojini Nagar, and East Kidwai Nagar in Delhi.

NBCC maintains continuous engagement and coordination with clients throughout the project lifecycle and obtains feedback at various stages of execution. Regular review meetings, site visits, and progress discussions are conducted to understand client requirements and expectations. Client satisfaction is evaluated on parameters such as timely project completion, quality of work, adherence to specifications, and compliance with safety and regulatory requirements. Issues or suggestions received from clients are documented and addressed through appropriate corrective measures. The feedback process assists the Company in strengthening its PMC services, improving execution efficiency, and aligning project delivery with client expectations in ongoing as well as future assignments.

The Engineering, Procurement and Construction (EPC) segment encompasses the end-to-end execution of infrastructure projects. The Company undertakes activities across the entire project lifecycle, including feasibility assessments, preparation of detailed project reports, engineering and design, procurement management, construction oversight and turnkey project delivery. Through this segment, NBCC executes a range of infrastructure projects such as Social Housing Projects in Maldives, cooling towers, solar parks, roads, water infrastructure and transmission systems.

Overseas Operations

Since commencing its international operations in 1977, NBCC has executed projects across several countries, including Libya, Iraq, Yemen, Turkey, Nepal, Botswana, Niger, and Mauritius. Over the years, the Company has expanded and strengthened its international presence, with operations in Mauritius, Maldives, Seychelles, Dubai, and Jeddah. Alongside its ongoing international engagements, NBCC is also pursuing opportunities in Kuwait, Iraq, Oman, Fiji, and Australia. In addition, NBCC has incorporated its wholly owned subsidiary, NBCC Overseas Real Estate LLC, to undertake real estate development in mainland Dubai. The Company has also undertaken selected international projects, including the development of social housing units in the Maldives.

NBCCs expansion in international markets has been supported by its involvement in Engineering, Procurement and Construction (EPC), Project Management Consultancy (PMC), and real estate projects. The Company operates in markets that are witnessing growing demand for infrastructure development, urban redevelopment, institutional buildings, housing, and public infrastructure projects.

Company Outlook

NBCC continues to strengthen its focus on project management consultancy, redevelopment and infrastructure development. The Company is also advancing several major redevelopment assignments and undertaking initiatives aimed at accelerating project execution in the coming years. It is envisaged that vacant, underutilised, and unutilised land parcels of PSUs will be developed and redeveloped on a self-sustaining basis. This approach is aimed at meeting their current requirements as well as future expansion needs, while also supporting cash flow generation. Additionally, in April 2026, the Company has entered into an exclusive MoU with HUDCO to undertake asset monetisation initiatives in redevelopment projects. The collaboration is expected to enhance profitability and result in higher revenue surplus from such projects. Moreover, NBCC is well positioned to benefit from opportunities arising in urban redevelopment, public infrastructure development and government-led construction programmes. Ongoing projects, including the GPRA, Amrapali completion programme and large-scale redevelopment initiatives, are expected to support growth in the coming years. The Company is also seeking to expand its footprint through international engagements and selective overseas real estate development opportunities.

Financial Performance

Income from Operations

The Company reported consolidated income from operations of 12,888.61 crore in FY 2025 26, compared to 12,043.78 crore in FY 2024–25, reflecting a growth of 7.01%.

Profit Before Tax (PBT)

Consolidated PBT (after exceptional items) stood at 991.32 crore in FY 2025 26 as against 755.01 crore in FY 2024 25, registering an increase of 31.30%.

Profit After Tax (PAT)

On a consolidated basis, PAT increased by 33.19% in FY 2025 26 to 742.45 crore, compared with 557.42 crore in FY 2024 25.

	Consolidated		Standalone
Particulars	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Total Income from Operations (Net)	12,888.61	12,043.78	9755.31	8730.56
Net Profit/(Loss) from Ordinary Activities Before Tax (Before Exceptional Items)	911.16	850.97	832.97	725.72
Exceptional Items	(80.16)	95.96	(80.16)	95.96
Net Profit/(Loss) From Ordinary Activities Before Tax (After Exceptional Items)	991.32	755.01	913.13	629.76
Net Profit/(Loss) From Ordinary Activities After Tax (After Exceptional Items)	742.45	557.42	703.29	476.11
Total Comprehensive Income for the year	744.74	527.83	701.63	446.74
Paid-up Equity Share Capital	270.00	270.00	270.00	270.00
Reserves (Excluding Revaluation Reserve and NCI) as Shown in Audited Balance Sheet	2747.26	2209.06	2575.63	2057.60
Earnings Per Share (EPS) (From Continuing and
Discontinuing Operations) (of 1/- Each)
(A) Basic (in )	2.67	2.00	2.60	1.76
(B) Diluted (in )	2.67	2.00	2.60	1.76

Segment-wise Performance

Segment-wise Revenue from Operations (Consolidated)

• Project Management Consultancy (PMC)

In FY 2026, PMC contributed revenue of 12,375.10 crore, compared to 11,003.21 crore in FY 2025.

• Real Estate

In FY 2026, the segment contributed revenue of 100.09 crore, while in FY 2025 it stood at 258.96 crore

• Engineering Procurement & Construction (EPC)

In FY 2026, EPC generated revenue of 382.01 crore, as against 735.63 crore in FY 2025

	Consolidated		Standalone
Particulars	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Segment revenue from Operations
PMC	12,375.10	11003.21	9,392.89	7,820.54
Real Estate	100.09	258.96	100.10	274.26
Engineering, Procurement and Construction (EPC)	382.01	735.63	233.85	591.15
Unallocated	31.41	45.98	28.47	44.61
Total	12,888.61	12043.78	9,755.31	8730.56
Less: Inter-segment Revenue	-	-	-	-
Net Sales/Revenue from Operations	12,888.61	12043.78	9,755.31	8730.56
Segment Results: Profit Before Tax (PBT)
PMC	790.53	641.37	673.67	481.57
Real Estate	106.47	(9.83)	106.94	0.65
EPC	27.86	19.16	13.33	13.41
Unallocated	66.46	104.31	119.19	134.13
Total PBT	991.32	755.01	913.13	629.76

Investments in Subsidiaries and Associates

As of FY 2025-26, NBCC had the following subsidiaries and joint venture companies:

Name of the Company	Category	Investment (%)
NBCC Services Limited	Wholly Owned Subsidiary	100
HSCC (India) Limited	Wholly Owned Subsidiary	100
Hindustan Steelworks Construction Limited (HSCL)	Subsidiary	51
NBCC DWC LLC	Foreign Wholly Owned Subsidiary	100
NBCC Overseas Real Estate LLC	Foreign Wholly Owned Subsidiary	100
Real Estate Development and Construction Corporation of Rajasthan Limited (REDCCOR)	Joint Venture Company	50

Notes: Besides, there are Joint Ventures (AOPs) also i.e. NBCC-AB JV (50%), and NBCC-MHG JV (50%)

Related Party Disclosure

S. No.	In the Accounts of	Disclosures of Amounts at the Year-end and Maximum Amount of Loans/Advances/ Investments Outstanding During the Year
1.	Holding Company	Loans and advances in the nature of loans to subsidiaries, specifying the name and amount: NBCC Overseas Real Estate LLC - K 5,416.62 Lakh (Principal: 5,262.00 Lakh + Interest: 154.62 Lakh)
		Loans and advances in the nature of loans to associates, specifying the name and amount: Nil
		Loans and advances in the nature of loans to firms/companies in which directors are interested, specifying the name and amount: Nil
2.	Subsidiary	Disclosures similar to those applicable to the parent Company are to be made in the accounts of the subsidiary Company.
3.	Holding Company	Investments made by the loanee in the shares of the parent Company and its subsidiary, where the Company has provided a loan or advance in the nature of a loan: Nil

Financial Ratios on Standalone basis

Details of significant changes (i.e. changes of 25% or more compared to the immediately preceding financial year) in key financial ratios, along with detailed explanations, are provided below:

Particulars	Details of Ratio	Description	FY 2025- 26	FY 2024- 25	% Change	Reason for Change
Trade Receivable Turnover (in times)	Revenue from operations / Average trade receivables	This ratio measures the Companys efficiency in managing and collecting receivables. It indicates how frequently the Company realises its dues.	3.03	3.94	(23.10%)	Variance not more than 25%
Inventory Turnover Ratio (in times)	Cost of goods sold / Average inventory	This ratio reflects how efficiently the Company manages its inventory and the frequency of inventory replenishment. As the Company derives a majority of its revenue from the PMC segment, where inventory levels are negligible, the ratio has improved.	8.17	7.06	15.72%	Variance not more than 25%
Interest Coverage Ratio (ICR)	Earning for debt service/ Debt service	The Company does not have any outstanding debt; therefore, this ratio is not applicable.	NA	NA	NA	Company has no debts
Current Ratio (in times)	Current assets / Current liabilities	This ratio indicates the Companys ability to meet its short-term obligations due within one year.	1.21	1.22	(0.82%)
Debt-to- Equity (D/E) Ratio	Total debt / Shareholders equity	The Company does not have any outstanding debt; therefore, this ratio is not applicable.	NA	NA	NA	Company has no debts
Operating Profit Margin (before exceptional items) (%)	Profit before exceptional items and tax (excluding other income)/ Revenue from operations	This ratio indicates how much profit the Company makes on sales/services, after paying directly attributable prime cost	5.46%	5.87%	(6.98%)	Variance not more than 25%
Net Profit Ratio (%)	Net profit / Revenue from operations	This ratio represents the proportion of net profit margin generated from operating revenue.	7.21%	5.45%	32.29%	The increase is driven by improved revenue from operations and the reversal of exceptional loss provided in previous year
Return on Net Worth (%)	Net profit / Net worth (total equity)	Return on Net Worth measures the return generated on the shareholders investment in the Company.	24.71%	20.45%	20.83%	Due to improvement in Net Profit, the Return on Net Worth has increased

MoUs undertaken in FY 2025-26

NBCC signed Several MoUs in FY26, widening its opportunity pipeline across public infrastructure, redevelopment and international real estate. Domestic agreements with RailTel, NFDC, the Department of Posts, Meerut Development Authority (MDA), Delhi Development Authority (DDA) and NMRDA provide access to institutional assets and redevelopment mandates across multiple sectors. International technical strategic collaboration with Pantheon Elysee Real Estate Development LLC and Goldfields Australia Pty Ltd extend NBCCs reach into overseas markets and add new avenues for project acquisition.

(Refer to Page No. 22 of Integrated Annual Report 2025-26.)

Research and Development (R&D) for Sustainable Construction

At NBCC (India) Limited, Research and Development plays an important role in advancing sustainable construction practices. The Company focuses on promoting environmentally responsible construction through the adoption of sustainable materials, eco-friendly technologies and efficient design approaches.

The R&D division works towards enhancing the durability, efficiency and performance of infrastructure while reducing environmental impact through the adoption of advanced construction techniques. In addition to internally driven initiatives, the Company collaborates with reputed academic and research institutions to explore innovative solutions that support efficient and responsible infrastructure development.

(Refer Boards Report for more details.)

Human Resource

NBCCs human resource philosophy is focused on developing a capable, motivated and future-ready workforce. During the year, the Company further strengthened its focus on employee development, workplace wellbeing and the promotion of inclusive practices, while also continuing to refine internal systems and policies aimed at improving productivity and employee engagement.

The Companys Honorarium Policy encourages experienced employees to act as in-house faculty for internal training programmes. This enables the use of internal expertise to enhance technical, behavioural, managerial and leadership capabilities across the organisation, while also supporting the development of future leaders and the achievement of organisational objectives.

Through initiatives covering talent management, skill development, digital adoption, employee welfare and structured communication, NBCC continued to maintain a stable and performance-oriented HR environment. In addition, the Company has undertaken steps to align its training programmes with employees needs for acquiring new tools and technologies.

The organisation has placed emphasis on capacity building in areas such as Building Information Modelling (BIM), data-driven monitoring systems, and modern construction and project management practices. In this direction, structured training workshops, expert sessions and hands-on learning programmes are planned in collaboration with industry specialists and technology partners.

Employees across the organisation are encouraged to undertake certification courses and participate in digital learning platforms to enhance their technical and project execution capabilities. The Company has also implemented dedicated welfare measures for construction workers, thereby supporting improved operational efficiency and reinforcing stakeholder confidence.

Risk and Concern

NBCC recognises the risks inherent in the construction, real estate and infrastructure development sectors. To address these challenges, the Company follows a structured and proactive risk management approach supported by a well-defined organisational framework. This framework facilitates the systematic identification, evaluation, mitigation and monitoring of risks across technical, commercial, operational, regulatory and geopolitical dimensions.

The Companys risk management policy is aligned with the guidelines of ISO 31000:2018. At the project level, designated risk coordinators such as regional and functional heads maintain monthly risk registers and implement appropriate mitigation measures. At the enterprise level, NBCC has established a two-tier governance mechanism. The Risk Assessment Committee (RAC), comprising senior officials from different departments, reviews key risks and recommends mitigation measures on a quarterly basis. These recommendations are subsequently reviewed by the Risk Management Committee (RMC), which includes directors and independent directors and provides strategic oversight. In addition, the Company has strengthened its internal control systems, revised contractual frameworks and introduced greater operational flexibility to reduce disputes, manage execution-related risks and support efficient project delivery. The implementation of an Enterprise Resource Planning (ERP) dashboard further enables real-time monitoring and assessment of project-level risks.

(Refer to page 36 of the Integrated Report for more details.)

Environment Protection and Conservation, Technological Conservation, Renewable Energy Conservation and Foreign Exchange Conservation

The particulars relating to environmental protection and conservation are provided in the Business Responsibility and Sustainability Report, while details regarding technological initiatives, energy conservation and foreign exchange conservation are included in the Boards Report.

Corporate Social Responsibility (CSR)

NBCC considers its role in community development as an integral part of its operations. During the year under review, the Company touched approx 37 lakhs lives, intending to create a positive and lasting impact across its areas of operation. In FY 2026, CSR initiatives were primarily focused on healthcare, education, environment-related initiatives, community development, nutrition, and sports or cultural activities.

Healthcare

Sponsored AIIMS research project on CANB development for neurocognitive assessment in mental, neurological and behavioral disorders, with benefits expected to accrue to the public at a later stage.

Established physiotherapy unit at CARI, Bhubaneswar, Odisha, along with support extended to the Central Council for Research in Ayurvedic Sciences.

Procured AI-based Sigtuple AI 100 equipment for rapid anaemia diagnosis in Khora Colony, Ghaziabad, Uttar Pradesh.

Established comprehensive ophthalmology unit at IMDH, Mokokchung, Nagaland, where a large number of patients continue to avail treatment services.

Sponsored one ambulance at Hanley, Leh, benefiting approximately 2,000 people in the region.

Extended welfare support to sanitary workers engaged in biomining and sanitary landfill management projects in Delhi, benefiting around 400 workers.

Provided a multi-utility vehicle and laptops for transportation of nutrition items and conduct of programme activities in Raichur, Karnataka.

Education

Constructed multipurpose community hall with pre-school facility at CBI Colony, Vasant Vihar, New Delhi, supporting around 50 students.

Supported digitisation and renovation of Police Public Library at Raghubir Nagar Police Post, Khyala, New Delhi, benefiting nearly 1,000 users.

Sponsored skill development training for youth at TSDC Ghitorni through various agencies, benefiting 335 students.

Procured furniture and developed astronomy laboratory at UPS Akhbandpur, Sambhal, Uttar Pradesh, supporting 720 students.

Developed public library at Gram Panchayat Office, Sambhal, Uttar Pradesh, improving access to learning resources.

Constructed Brain-Computer Interface Laboratory at the upcoming Bhaktivedanta University, Vrindavan, Mathura, Uttar Pradesh.

Provided smart class equipment to Sevasadan Shikshan Sanstha schools and college, Nagpur, Maharashtra.

Renovated and established public libraries in Amreli, Gujarat, strengthening community learning infrastructure.

Sponsored Self-Reliant Studentship Programme on social innovation at Central University of Karnataka, promoting Atmanirbhar Bharat objectives.

Supported Entrepreneurship Development and Incubation Programme for Women Startup ventures at a major institute in Visakhapatnam.

Environment related initiatives

Installed solar high mast light at Sultanpur, Uttar Pradesh, supporting public lighting infrastructure in the area.

Installed solar street lights at Vadodara, Gujarat, enhancing community safety and visibility.

Installed rooftop solar panel system at Bhawalpur, Sambhal, Uttar Pradesh, benefiting around 720 people.

Community Development

Undertook development works including construction of public toilets, installation of water coolers and solar lights near village community centre in Odisha.

Constructed public toilets in MCD slum area at Jodhpur Mess, Pandara Road, New Delhi, improving sanitation facilities.

EstablishedmeditationandyogacentreatHujeeMawnaw Vihara Society Complex under CADC, Mizoram.

Renovated and upgraded shopping complex at BSF Campus Humhama FTR HQ, Kashmir, for public use.

Nutrition

Sponsored distribution of nutrition kits to underprivileged and TB-affected families in Anuppur, Madhya Pradesh, benefiting about 1,000 people.

Sports or cultural initiatives

Established one outdoor gym at Rohtak, Haryana, supporting community fitness activities.

Sponsored T-shirts for Kreeda Bharti to promote physical fitness and endurance sports among youth.

Disclosure of Accounting Treatment

The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs ("MCA") under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules 2015 as amended from time to time and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (Ind AS compliant Schedule III). The Company has uniformly applied the Accounting Policies during the year presented.

Internal Control Systems and their Adequacy

NBCC has in place adequate Internal Financial Controls with reference to financial reporting in compliance with the provisions of Section 134(5) (e) of the Companies Act, 2013 and such Internal Financial Controls over Financial Reporting were operating effectively. Internal Financial Controls over financial reporting are audited by statutory auditors and Internal Financial Controls are tested by external consultant on an annual basis. The controls have been designed to provide assurance with respect of maintenance of proper accounting records, ensuring the orderly and efficient conduct of its business including adherence to the Companys policies, safeguarding of its assets, prevention and detection of frauds and errors and ensuring reliability of financial and operational information. The internal control systems (including Internal Financial Controls over Financial Reporting) are reviewed on an ongoing basis and discussed at Audit Committee meetings. Necessary changes are carried out by the management to align with the changing business requirements In addition to the above, the Company has a well-defined delegation of financial powers to its various officers through its Sub-Delegation of Power book. The book is regularly updated as per needs of the Company as well as to bring further delegation. The Company has in-house Internal Audit and Technical Audit Departments commensurate with its size of operations. The internal audit programme, scope of audit and audit plan is approved from the Audit Committee. Internal audit is conducted through external audit firms and reports are deliberated with the management as well as the Audit Committee. The Statutory Auditors and Audit Committee of the Board regularly reviews significant audit findings covering operational, financial and other areas and provides guidance on internal controls.

Investor Relations

NBCC continued to strengthen its engagement with the investment community during FY 2025–26 through regular interactions with investors and analysts, supported by quarterly earnings calls, investor meetings, roadshows and timely disclosures. The Company also expanded its equity research coverage during the year, improving market visibility and access to information. These initiatives contributed to transparent communication with stakeholders and supported informed investor engagement.

Industrial Relations

NBCC (India) Ltd. maintained harmonious industrial relations across the organisation during the year. Regular engagement with employee representatives, timely resolution of concerns and periodic review of HR policies supported a positive work environment. Employee development programmes and open communication remained integral to the Companys people practices.

Cautionary Statement

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, outlook, plans or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, government policies, regulatory developments, market conditions, project execution timelines, input costs, interest rates, competition and other factors beyond the Companys control. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events.

	On Behalf of the Board of Directors
	Sd/-
	K. P. Mahadevaswamy
Date: August 11, 2026	Chairman and Managing Director
Place: New Delhi	DIN: 10041435