NBCC (India) Ltd Management Discussions

Economic Overview

Global Economy

In CY 2024, the global economy demonstrated resilience, registering a GDP expansion of 3.3%, despite navigating macro headwinds such as ongoing geopolitical tensions, steep inflation for a predominant part of the year, re-alignment of supply chains, shifting trade patterns and alterations in monetary policies. 1

With a measured pace, headline inflation was recorded at 5.7% in CY 2024, easing from 6.6% in the previous year, thereby, reflecting the consistent impact of fiscal restraints and declining commodity prices. 2

Major central banks, including the US Federal Reserve and the European Central Bank, began transitioning towards a more accommodative monetary stance, with initial interest rate cuts introduced in the second half of CY 2024. These shifts are anticipated to sustain through CY 2025, improving global liquidity and potentially stimulating capital expenditure in infrastructure and real estate developments.

Global construction activity remained resilient amidst de- escalating industrial production, bolstered by ongoing public investment in housing, transportation and urban infrastructure. The demand for energy-efficient buildings, sustainable urban development and infrastructure that endures, continued to gain momentum, particularly across emerging economies with rising urbanisation.

In advanced economies, real estate markets witnessed a recalibration, following the pandemic-era disruptions, with sharper focus on versatile developments, urban renewal and digital infrastructure integration. In Europe, improving consumer confidence and stabilising demand for commercial real estate aided with a modest recovery, while the US and parts of Asia-Pacific registered significant institutional flows into logistics, housing and renewable energy-linked assets.

With emerging markets at the centre of global growth, this momentum is being driven by demographic advantages, digital adoption and infrastructure-led expansion. The governments are prioritising Sustainable Development Goals (SDGs), thereby bolstering investments in affordable housing, green mobility and smart cities, which are expected to catalyse long-term construction demand.

Looking ahead, global GDP is projected to grow at a steady pace of 2.8% in CY 2025 and 3.0% in CY 2026. This outlook is supported by sustained consumer expenditure, targeted policy interventions, coupled with ongoing innovation strategies. Therefore, the global economy remains well- positioned to navigate macro-economic uncertainties and capitalise on structural growth opportunities.

Indian Economy

India has emerged as the worlds fourth-largest economy, with per capita income doubling since 2014, a testament to its sustained economic progress. Despite global headwinds, the way forward remains optimistic, due to ongoing domestic and foreign investments, robust manufacturing growth and improvement in trade and financial services.

India being a key driver of global growth, demonstrated economic resilience, recording a GDP growth of 6.5% in FY 2024-25. 3 Domestic demand remained robust, supported by stable private consumption and surging capital investments. The Reserve Bank of India (RBI) monitored inflation rates while supporting growth. Inflation eased to 3.3%, supported by stable food prices, improved supply chain efficiencies and proactive monetary interventions. 4 Fiscal measures prioritised infrastructure development, investment incentives, with financial sector reforms further strengthening economic resilience. Moreover, it played a crucial role in maintaining liquidity and contributing to economic activity.

Indias growth trajectory is expected to remain robust, improved by strong consumer demand, ongoing government focus on capital expenditure and sustained policy support. The Union Budget introduced meaningful income tax relief for salaried individuals, which is anticipated to bolster urban consumption and drive domestic demand. Easing retail inflation further reinforces macroeconomic stability, thereby enhancing the overall growth environment.

To sustain growth, the Monetary Policy Committee (MPC) introduced the repo rate cut of 100 bps to 5.5% including the 50-bps rate reduction in June, 2025, marking back-to-back decline in rates as the RBI shifts to an accommodative stance in response to easing inflation and global uncertainties. 5 These measures have, thereby, injected additional liquidity into the financial system, easing borrowing costs and are predicted to further improve credit availability and economic growth.

Amidst global uncertainties, India is set to become the third- largest by FY 2028 with GDP at an estimated $5 trillion, supported by potential enhancements in private investment and public infrastructure expenditure. 6 Strategic focus on manufacturing through Production Linked Incentive (PLI) schemes, infrastructural efforts and heightened FDI flows are bolstering Indias position in global value chains. With sound macro-economic fundamentals and a reform-oriented policy framework, India is therefore well-positioned to navigate global headwinds, sustaining its upward growth trajectory.

Industry Overview

Construction and Real Estate Industry

Global

The global construction industry is a key driver of economic growth, valued at $15.78 trillion in CY 2024 and projected at $20.44 trillion in CY 2029, with Compound Annual Growth Rate (CAGR) growth of 4.3%. 7 This expansion is primarily bolstered by rapid urbanisation, rising infrastructure investments and a substantial post-pandemic rebound in commercial and institutional developments.

Global Construction Market

With sustainability at the core of global construction, the sector is responsible for 37% of global energy and process related CO 2 emissions, based on the United Nations (UN) Global Status Report for Buildings and Construction. Consequently, countries are undertaking measures towards green infrastructure, energy-efficient buildings and net-zero construction practices. Public procurement policies, green codes and ESG-aligned investment flows are escalating the global transition to climate-resilient infrastructure.

With construction activities witnessing a resurgence, Asia- Pacific continues to be the leading regional market. India and China are rising as key demand drivers, with robust fundamentals such as demographic advantages, urban growth and infrastructure demands. The transition towards asset types that combine real estate and infrastructure, such as data centres, logistics parks and institutional buildings, has broadened the global investment landscape of the sector.

India

India being among the fastest-growing construction markets globally, is forecasted to augment from $300 billion in 2024 to $1 trillion by 2030 and further to $4.8 trillion by 2047, supported by government-led infrastructure expenditure, urban population growth and rising real estate demand. 8 The sector is undergoing a transition from conventional real estate development to integrated infrastructure projects such as smart cities, institutional buildings, data centres, mass transit systems and civic utilities. The government has sustained a sharp focus on infrastructure-led development as reflected in the Union Budget 2025-26, allocating a record Rs11.21 lakh crore for capital expenditure, prioritising robust public investment in transportation, housing, urban renewal and social infrastructure.

The urban population is expected to surpass 607.3 million by 2030, driving demand for housing, commercial spaces, public infrastructure and smart city solutions. Government initiatives focused on housing, transport, sanitation and digital connectivity are therefore stimulating construction activity across urban and peri-urban India. Affordable housing retains the significant policy support, with the government allocating Rs23,294 crore for Pradhan Mantri Awas Yojana (Urban) (PMAY-U) in the Union Budget 2025-26. 11 The commercial real estate market remains equally buoyant, witnessing heightening absorption of Grade A office space, particularly by Information Technology (IT), Banking, Financial Services and Insurance (BFSI) and Global Capability Centres. With green buildings becoming mainstream in India, they are aligned with Indias ESG milestones and the global transition towards net-zero emissions. India is projected to invest Rs143 lakh crore in infrastructure between FY 2023 and FY 2030, exceeding the two-fold surge since the previous decades investment. 12

Policy Support and Government Initiatives

• 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.

• Capacity Building in Urban Planning: The High- Level Committee on Urban Planning called for the hiring of over 20,000 urban planners by 2030, to address Indias planning capacity deficit and ensure sustainable urban expansion. 13

• The Pradhan Mantri Gram Sadak Yojana

(PMGSY-IV): The PMGSY-IV was initiated by the Indian Government with an outlay of H70,125 crores for the construction of 62,500 km of roads, thereby ensuring connectivity to eligible 25,000 unconnected habitations.

• Urban Affairs and Housing: The Housing for All is a major flagship programmes initiated by the Indian Government that aims to offer all-weather pucca houses to eligible beneficiaries in the urban areas of the country.

• 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 Enterprises (CPSE) under the Ministry of Housing and Urban Affairs (MoHUA). It is a project management and consultancy organisation with 64 years of expertise in delivering end-to- end project commissioning, with execution risks assigned to contractors. It is recognised as the preferred Central Public Sector Enterprise (CPSE) for government land redevelopment, the revival of stalled private real estate projects and the construction of buildings and hospitals. With over six decades of domain expertise since its inception in 1960, NBCC has evolved into a multi-faceted organisation, operating in India and beyond.

One of the Largest Construction Companies in India

The Company operates via three strategic segment, namely, Project Management Consultancy (PMC), Engineering Procurement and Construction (EPC) and Real Estate- catering to a diverse portfolio of government and institutional/ PSU clients. These segments have enhanced the Companys proficiency in delivering large-scale redevelopment projects, earning it a strong reputation as a trusted partner for government-led urban infrastructure initiatives.

In FY2024-25, the Company achieved its highest-ever inflow of H753 billion, representing a threefold increase year-on-year, with 76% contributed by consolidated land redevelopment and stressed private sector projects and the balance from consultancy orders. The order book as of March 2025 surpassed the H1 trillion mark for the first time, reaching H1,205 billion, driven by a 2.5-times growth in redevelopment projects. This has resulted in a robust book-to-visibility ratio of 10x. Redevelopment and stressed asset projects also carry higher margins, supported by increased fixed fees and marketing margins on real estate sales.

NBCCs consolidated order book was valued at Rs1,20,533 crore as of March 31, 2025, providing long-term revenue visibility. Operating through key subsidiaries such as Hospital Services Consultancy Services (HSCC) (India) Ltd, Hindustan Steelworks Construction Limited (HSCL) and NBCC Services Limited (NSL), further strengthens its execution capabilities across specialised domains such as healthcare infrastructure, steel plant development and facility management.

PMC continues to be the Companys primary revenue driver. NBCC executes a wide array of civil and infrastructure projects under the PMC model on a fixed agency fee basis. These include construction of hospitals, educational institutions, offices, residential complexes, border infrastructure, environmental sector projects like solid waste management systems, drainage networks and water supply schemes.

A hallmark of NBCCs PMC strategy is its distinctive self- revenue generation model for redevelopment projects, wherein the land is provided by the government. NBCC monetises part of the land through commercial exploitation, thereby funding the development of public infrastructure. This innovative model has, therefore, positioned NBCC as a leader in the sector of urban redevelopment, with landmark projects such as Netaji Nagar, Sarojini Nagar and Nauroji Nagar, New Moti Bagh, East Kidwai Nagar in Delhi.

Engineering, Procurement and Construction (EPC)

The EPC segment encompasses all stages of an infrastructure project from concept development, engineering design, procurement and construction to commission and handover. NBCCs EPC services include feasibility studies, preparation of Detailed Project Reports (DPRs), basic and detailed engineering, procurement planning, construction supervision and turnkey delivery.

NBCC has executed vital infrastructure projects such as chimneys, cooling towers, coal handling systems, runways, roads, water infrastructure and TV towers. Moreover, the vertical has expanded its scope to implement smart utility projects and industrial infrastructure. Additionally, NBCC is also implemented 2000 Social Housing Units in Maldives as a EPC contractor.

Real Estate

Profit Before Interest and Tax (PBIT ) (Standalone)

The Real Estate segment of NBCC has continued its growth momentum, supported by strong market sentiments and the confidence of investors and buyers. During FY 2024-25, revenue from the segment rose to Rs269.06 crore as against Rs144.93 crore in the previous year, reflecting a robust growth trajectory. With absorption of built-up inventory improving and demand for new developments on the rise, NBCC is actively leveraging its well-diversified land bank across the country to launch new residential and commercial projects.

Overseas Operations

NBCC ventured into international markets in 1977 and has consistently delivered projects in countries including Libya, Iraq, Yemen, Turkey, Nepal, Botswana, Niger and Mauritius. The Company has global footprints spanning Maldives, Mauritius, Seychelles, Dubai and Jeddah and is exploring further opportunities in Tashkent, Main land Dubai, United Arab Emirates (UAE) and several countries in Africa.

NBCC completed its largest overseas project in Hulhumale, Maldives, a $130 million housing development of 2,000 units financed by Exim Bank of India, strengthening its international track record.

Other Prominent Overseas Projects (Completed/Ongoing) Include:

Completed Projects

• Institute for Security and Law Enforcement Studies (ISLES) at Addu City, Maldives

• Indian Pavilion at the World Expo 2020, Dubai

• Social Housing Projects at Mare Tabac and Dagotiere, Mauraitius

• Construction of Indo Maldives Friendship Faculty of Hospitality and Tourism Studies at Male, Republic of Maldives

• New Supreme Court Building at Port Louis, Mauritius

• Mahatma Gandhi Convention Centre at Niger Ongoing Projects

• Chancery and Residential Buildings for High Commission of India in Seychelles

• Chancery and Residential Buildings Consulate General of India in Jeddah

• Police Academy, Forensic Science Laboratory, National Archives and National Library and civil services college at Mauritius

Company Outlook

NBCC is poised for strategic expansion, propelled by the governments sustained momentum of infrastructural developments and the Companys execution capabilities in terms of large-scale public sector projects. The Company is actively engaging with various ministries and public sector organisations to unlock potential in terms of redevelopment and land monetisation by targeting vacant or underutilised government land across India. NBCC, is engaged in the engineering, construction and maintenance of government buildings and other public infrastructure. Additionally, the Company is extending its international footprint by addressing the escalating demands in Africa, the Gulf Cooperation Council (GCC) and island economies. These include pipeline projects in Tashkent, Mainland Dubai, Iraq, Mauritius, UAE, where NBCCs credibility is reinforced by its position as an executing agency for Government of India funded initiatives. NBCC is strategically enhancing its internal systems by streamlining contracts, adopting digital tools to enhance project monitoring and integrating Environmental, Social and Governance (ESG) practices into its execution model to remain future-ready. With a diversified portfolio, credible execution history and alignment with national infrastructure objectives, NBCC is anticipated to harness emerging opportunities for value creation in the national and the global market.

NBCC is exploring to diversify its business manifolds in various new ventures viz. Energy Infrastructure, Tourism Infrastructure, Manpower Deployment, Research and Development, Training and Skill Development etc.

Moreover, the Company has entered a Memorandum of Understanding with the Centre for Development of Telematics (C-DOT) to construct Data Centre along with Residential and Non- Residential Buildings. Along with this, NBCC will serve as a Project Management Consultant which will include master planning and design to execution, supervision, obtaining statutory approvals.

NBCC also collaborated with RailTel Corporation of India in developing Data centre projects from concept to commissioning across India and overseas for a period of five years.

NBCC has entered into a MoU with the CII to set up a Multi Skill Training Institute (MSTI) and a Model Career Centre (MCC) in Ghitorni, Delhi. This partnership aims to equip Indias youth with industry-relevant skills, enhance their employability and contribute to economic growth.

STRENGTHS, WEAKNESS, OPPORTUNITIES AND THREATS

Key Strengths

Legacy of Trust and Institutional Excellence

• Historic Government-backed foundation: Established in 1960 as a Government of India civil engineering enterprise, NBCC has grown into a prestigious Navratna, Schedule-A CPSE, reflecting its enduring reputation, elevated governance standards and operational autonomy.

• Strong government relations: Over the decades, NBCC has cultivated deep-rooted partnerships with central and state government bodies, consistently earning confidence through reliability, high-quality delivery and timely execution.

Comprehensive and Diversified Service Portfolio - to provide concept to commissioning solutions

• NBCC operates across three synergistic verticals:

Project Management Consultancy (PMC).

Engineering, Procurement & Construction (EPC):

Real Estate Development

Innovative, Self-Sustaining Redevelopment Model

• NBCCs redevelopment business model creatively leverages government-provided land, develops a portion commercially and channels the proceeds to fund core redevelopment projects—facilitating scalable, debt-light growth.

Wide-Ranging Project Execution and Proven Track Record

• NBCC has executed a vast variety of building and other infrastructure projects across sectors—covering hospitals, educational institutions, offices, housing complexes, roads, sewerage, energy structures, border infrastructure and more. The company has also carried out numerous redevelopment initiatives.

• It also operates internationally, delivering projects in regions demonstrating geographical reach and versatility.

Strong Leadership and Skilled Workforce

• NBCC benefits from a seasoned management team equipped with deep industry knowledge and strategic insight. Supported by a cadre of skilled, experienced engineers, the company maintains high standards of project quality and operational excellence.

Weakness

• Revenue Dependence and Concentration: High reliance on a few segments and Geographic concentration limits business diversification

• Execution Risks: Statutory approval delays and payment issues from clients may stretch project timelines and defer revenue recognition.

Opportunities

Strategic Redevelopment of Government Land

NBCCs unique self-sustaining redevelopment model continues to offer significant opportunities through large-scale projects, particularly the redevelopment of Government colonies (GPRA) under urban renewal programmes.

NBCC is also actively advancing its redevelopment model by engaging with CPSEs and state governments, leveraging institutional land to create self-sustaining, revenue- generating projects.

Stressed Real Estate Resolution

The successful execution of stalled housing projects has reinforced NBCCs reliability, opening further opportunities in addressing stressed real estate assets across the country. International-level Convention Centres

Development of world-class convention centres across various states presents new growth avenues, enhancing NBCCs role in social and economic infrastructure.

Sectoral Diversification and Urbanisation-led Growth

NBCC is broadening its market by expanding into healthcare, defence-related construction, smart cities, renewable energy, data centres, logistics and tourism infrastructure. Its active role in flagship government programmes such as Affordable Housing and urban renewal further positions the Company to capitalise on long-term urbanisation and infrastructure growth.

Opportunity in Viksit Bharat Aligned with the national vision of Viksit Bharat, NBCC is well-placed to drive sustainable and innovative infrastructure development across redevelopment, healthcare, housing, smart cities and social infrastructure, shaping the framework of a developed India.

Threats

Reduced Nomination-Based Projects Restrictions under the General Financial Rules (GFR) 2016 have curtailed nomination-based project allocations to CPSEs, increasing reliance on competitive bidding.

Competitive Pressure and Margin Erosion

The PMC sector remains highly fragmented, with several CPSEs and non-core PSUs engaging in aggressive, low-fee bidding, thereby exerting sustained pressure on margins and pricing flexibility.

Regulatory and Compliance Risks

Frequent changes in environmental and financial regulations elevate compliance costs and risk project delays, impacting operational efficiency and profitability.

Execution Challenges

Limited availability of capable contractors with advanced technology and expertise in specialised infrastructure projects poses risks to timely and efficient project execution.

Financial Performance Income from Operations

The Company reported income from operations of Rs12,038.57 crore in FY 2024-25 on consolidated basis, reflecting growth over Rs10,406.79 crore in FY 2023-24. Strong project execution in PMC assignments, coupled with increased inventory sales in the Real Estate segment, has significantly contributed to the rise in revenue from operations during the financial year.

Profit Before Tax (PBT)

Consolidated PBT (after exceptional items) increased to f755.02 crore in FY 2024-25 on consolidated basis, up from Rs558.54 crore in FY 2023-24. The increase in revenue from operations has been a major contributing factor to the rise in Profit Before Tax (PBT) during the financial year.

Profit After Tax (PAT)

PAT for FY 2024-25 stood at Rs557.42 crore, higher than Rs414.38 crore in FY 2023-24 on consolidated basis, showing significant improvement. The increase in revenue from operations has been a key driver of the rise in Profit Before Tax (PBT), thereby resulting in an improved Profit After Tax (PAT) during the financial year.

Particulars	Consolidated		Standalone
	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24
Total income from operations (net)	12038.57	10406.79	8725.36	8026.73
Net profit/loss from ordinary activities before tax (before exceptional items)	850.98	742.11	725.72	640.06
Net profit/loss from ordinary activities before tax (after exceptional items)	755.02	558.54	629.76	456.49
Net profit/loss from ordinary activities after tax (after exceptional items)	557.42	414.38	476.11	344.36
Total comprehensive income after taxes and Non-Controlling Interest (NCI)	511.57	378.32	446.74	321.65
Paid-up equity share capital	270.00	180.00	270.00	180.00
Reserves (excluding revaluation reserve and NCI) as shown in audited balance sheet	2209.06	2045.62	2057.60	1959.00
Earnings Per Share (EPS) (from continuing and discontinuing operations) (of Rs 1/-each) (not annualised)
(A) Basic (in Rs)	2.00	1.49	1.76	1.28
(B) Diluted (in Rs)	2.00	1.49	1.76	1.28

Segment-wise Performance

Segment-wise Revenue from Operations (Consolidated)

PMC

PMC contributed Rs11,003.21 crore in revenue in FY 2024-25, compared to Rs9,697.19 crore in FY 2023-24. Strong project execution has resulted in improved performance in PMC projects during the financial year.

Real Estate

Revenue from the real estate segment increased to Rs253.75 crore in FY 2024-25, up from Rs144.93 crore in FY 2023-24, showing significant growth. Increased inventory sales in the Real Estate segment have contributed to the rise in revenue from operations during the financial year.

EPC

EPC revenue grew to 735.63 crore in FY 2024-25, compared to Rs553.02 crore in FY 2023-24.

(Rs in crore)

Particulars	Consolidated		Standalone
	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24
Segment revenue from Operations
PMC	11003.21	9697.19	7,820.54	7428.06
Real estate	253.75	144.93	269.06	144.94
Engineering, Procurement and Construction (EPC)	735.63	553.02	591.15	441.32
Unallocated	45.98	11.65	44.61	12.40
Total	12038.57	10406.79	8725.36	8026.73
Less: Inter segment revenue	-	-	-	-
Net sales/income From operations	12038.57	10406.79	8725.36	8026.73
Segment results: Profit Before Tax (PBT)
PMC	641.41	604.82	481.58	498.71
Real Estate	(9.82)	(156.22)	0.65	(156.21)
EPC	19.16	65.03	13.41	61.44
Unallocated	104.33	44.96	134.13	52.57
Less: Finance cost	0.06	0.05	0.01	0.02
Total PBT	755.02	558.54	629.76	456.49

Investments in Subsidiaries and Associates

At the end of FY 2024-25, NBCC had 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
Real Estate Development & Construction Corporation of Rajasthan Limited (REDCCOR)	Joint Venture Company	50

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

Related Party Disclosure

S No.	In the accounts of	Disclosures of amounts at the year end and the maximum amount of loans/advances/ investments outstanding during the year
1.	Holding Company	\u2022 Loans and advances in the nature of loans to subsidiaries by name and amount: NIL
		\u2022 Loans and advances in the nature of loans to associates by name and amount: NIL
		\u2022 Loans and advances in the nature of loans to firms/companies in which directors are interested by name and amount: NIL
2.	Subsidiary	Same disclosures as applicable to the parent Company in the accounts of subsidiary Company
3.	Holding Company	Investments by the loanee in the shares of parent Company and subsidiary Company, when the Company has made a loan or advance in the nature of loan: NA

Financial Ratios on Standalone basis

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous Financial Year) in key financial ratios, along-with detailed explanations are as follows:

Particulars	Details of Ratio	Description	FY 2024-25	FY 2023-24	% change	Reason behind the change
Trade Receivable Turnover (in times)	Revenue from operations / Average trade receivables	This ratio measures the efficiency of the Company in managing and collecting the debts and receivables. It signifies the level how frequently the Company realises its dues.	3.94	4.24	-7.08%	Variance not more than 25%
Inventory Turnover Ratio (in times)	Cost of goods sold / average Inventory	This ratio shows how well the Company manages its inventory levels and how frequently the Company replenishes its inventory. The Companys major revenue is derived from the PMC segment, where inventory levels are negligible. Accordingly, the inventory turnover ratio has improved.	7.06	5.55	27.21%	The Company\u2019s major revenue is derived from the PMC segment, where inventory levels are negligible. Accordingly, the inventory turnover ratio has improved.
Interest Coverage Ratio (ICR)	Earning for debt service/ debt service	The Company has no debt.	NA	NA	NA	The Company has no Debts.
Current ratio (in times)	Current assets / current liabilities	This ratio shows the Company\u2019s ability to pay short-term obligations or those due within one year	1.21	1.22	-0.82%	Variance not more than 25%
Debt-to- Equity (D/E) ratio	Total debt / shareholders\u2019 equity	The Company has no debt.	NA	NA	NA	The Company has no Debts.
Operating profit margin (before exceptional item) (%)	Profit before exceptional item and tax (excluding other income)/ total income from operation	This ratio shows how much profit the Company makes on sales/services, after paying directly attributable prime cost.	5.81%	5.47%	6.21%	Variance not more than 25%
Net profit ratio (%)	Net profit / revenue from operations	Net profit margin signifies the amount of net income/ profit is generated from its operating revenues.	5.46%	4.29%	27.27%	During FY 2024-25, the Companys revenue from operations increased, accompanied by an improvement in EBITDA margin, resulting in an increase in net profit.
Return on net worth (%)	Net profit / net worth (total equity)	Return on Net worth signifies the returns to the owners on their investment in the Company.	20.45%	16.10%	27.02%	During FY 2024-25, the Company witnessed an increase in revenue from operations along with an improvement in net profit, which collectively led to a rise in the Return on Net Worth.

Research and Development (R&D) for Sustainable Construction

At NBCC (India) Ltd, consistent R&D is the foundation for ensuring sustainable construction. The Companys commitment to innovation-led development is reinforced by its strategic investments in sustainable construction technologies, eco-friendly materials and design optimisation. The R&D Policy, 2013 adheres to the Department of Public Enterprises (DPE) guidelines, thereby, facilitating research- oriented internal operations while promoting collaborations with reputed academic institutions.

Key Focus Areas

1. Sustainable design and engineering.

2. Development of low-impact construction materials.

3. Adoption of advanced construction technologies.

4. Application of Information and Communications Technology (ICT) tools for efficient project execution and safety enhancement.

These initiatives align with the Companys ESG objectives, including minimising carbon footprint, conserving natural resources and enhancing the durability of developed assets.

A key highlight of NBCCs R&D efforts is the collaborative R&D Centre at Indian Institute of Technology (IIT) Roorkees Greater Noida campus, promoting research in superior performance concrete, self-healing materials, utilisation of agro-waste in construction and corrosion mitigation. In FY 2024-25, the Company allocated Rs15 crore towards R&D activities, supporting more than a dozen cutting-edge projects spanning premier institutions including IIT Roorkee, IIT Delhi, IIT Guwahati , National Institute of Technology (NIT), Birla Institute of Technology and Science (BITS) Pilani, Thapar University and School of Planning and Architecture (SPA) Delhi.

NBCC invests in innovative initiatives aimed at developing eco-friendly, heat-reflective bricks, environment-resilient infrastructure, nanomaterials from agricultural residue and water-efficient concrete technologies catalysed by robust in-house research. These are instrumental in enhancing operational efficiency by promoting cost-effective, sustainable solutions.

The Company prioritises green construction practices in its operations and has been recognised through the Green Rating for Integrated Habitat Assessment (GRIHA) or Leadership in Energy and Environmental Design (LEED) certification. Additionally, NBCC is enabling design optimisation by deploying digital design tools and simulation technologies to enhance safety, productivity and sustainability.

(Refer to page 50 of the Integrated Report for more details.)

Human Resource

NBCCs human resource philosophy prioritises the development of a resilient, empowered and future-ready workforce. In FY 2024-25, the Company reinforced its commitment to employee development, workplace wellbeing and diversifying of inclusive practices while streamlining internal systems and policies to enhance productivity and foster engagement.

With a focus on sustained improvement, NBCC ensured a stable, performance-oriented HR ecosystem through initiatives promoting talent management, capability enhancement, digital enablement, employee welfare and structured communication. The Company even made significant efforts for the wellbeing of Construction workers. These efforts have significantly enhanced operational efficiency, thereby bolstering stakeholder confidence. At the end of the financial year, the total number of employees were recorded to be 1172.

(Refer to page 58 of the Integrated Report for more details.)

Risks and Concerns

NBCC recognises the risk pertaining to construction, real estate and infrastructure development sectors. The Company follows a proactive, system-driven approach to risk management, supported by a clearly defined organisational framework. These frameworks enable systematic identification, assessment, mitigation and monitoring of a broad spectrum of risks including technical, commercial, organisational, regulatory and geopolitical factors. The Companys operates with a risk management policy in alignment with ISO 31000:2018 guidelines.

At the project level, risk coordinators including regional heads and function heads are responsible for maintaining monthly risk registers and implementing mitigation strategies while a two-tier committee functions at the enterprise level. The Risk Assessment Committee (RAC) comprising senior officials across departments identifies key risks and recommends mitigation measures on a quarterly basis. These are addressed by the Risk Management Committee (RMC) involving the directors and independent directors for supervision and strategic action.

The Company has bolstered its internal control systems, restructured contractual frameworks and ensured greater operational autonomy to mitigate disputes, manage execution risks and ensure seamless project delivery. Additionally, the employment of an Enterprise Resource Planning (ERP) dashboard facilitates real-time project-level risk assessment.

(Refer to page 24 of the Integrated Report for more details.)

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

The particulars of environment protection and conservation are detailed in the Business Responsibility and Sustainability Report while the technological conservation, energy conservation and foreign exchange conservation are detailed in the Directors Report.

Corporate Social Responsibility (CSR)

A detailed overview of the Companys CSR programmes and expenditures is incorporated in the Directors Report.

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.

Cautionary Statement

Statements made in the Management Discussion and Analysis Report describing the Companys objective, projections, estimates, expectations may be forward looking statements within the meaning of applicable laws and regulations, based on beliefs of the management of the Company. Such statements reflect the Companys current views with respect to the future events and are subject to risks and uncertainties.

Many factors could cause the actual result to be materially different from those projected in this report, including among others, changes in the general economic and business conditions affecting the segment in which the Company operates, changes in business strategy, changes in interest rates, inflation, deflation, foreign exchange rates fluctuation, competition in the industry, changes in governmental regulations, tax laws, statutes and other incidental factors.

The Company does not undertake any obligation to publicly update any forward-looking statement, whether as a result of new development, future events or otherwise.

	On Behalf of the Board of Directors
	Sd/-
	K.P. Mahadevaswamy
Date: August 7, 2025	Chairman and Managing Director
Place : New Delhi	(DIN: 10041435)