NCC Ltd Management Discussions

Economy and Industry structure Global Economy

The fiscal year 2024–25 marked a critical phase of stabilization and recalibration for the global economy, following successive years of post-pandemic volatility, energy market disruption, and synchronized monetary tightening across major economies. According to the International Monetary Funds World Economic Outlook (April 2025), global GDP growth moderated slightly to 3.3% in 2024, down from 3.5% in 2023, reflecting a convergence towards long-term structural norms amid a complex macro-financial environment.

Advanced Economies experienced mixed outcomes, with growth ranging between 0.1% and 2.8%, constrained by entrenched core inflation, a high-interest rate regime, and tepid external demand—particularly from China, whose real estate and manufacturing sectors remained under pressure. The United States demonstrated resilience on the back of consumer spending and industrial policy stimulus, while the Eurozone and Japan faced stiffer headwinds due to fiscal consolidation and energy transition adjustments.

In contrast, Emerging Markets and Developing Economies (EMDEs)—particularly in Asia—continued to anchor global momentum. Asian economies also attracted strong capital inflows amid shifting manufacturing and sourcing patterns, underscoring their increasing strategic relevance in global production networks.

Source: IMF (numbers are for calendar year i.e., January to December; E=Estimates)

Commodities and Inflationary Outlook: Commodity markets underwent significant correction during the year. Prices of key industrial metals i.e., steel, aluminium, and copper registered a year-on-year decline of 8% - 12%. According to World Bank global economic data Crude oil averaged USD 80 per barrel, moderated by OPEC+ production policies and geopolitical balancing acts in the Middle East.

While global inflation showed signs of moderation, easing to 4.7%, core components such as housing, energy transition inputs, and agri-commodities kept headline inflation above central bank targets in most jurisdictions. This sustained inflationary backdrop compelled monetary authorities—particularly in the U.S. and EU—to maintain a tight policy stance, although emerging signals suggest potential easing in late FY 2025.

Source: IMF (numbers are for calendar year i.e., January to December; E=Estimates)

Key Global Macroeconomic Indicators 2023–2025: The major Global Macroeconomic indicators are given below:

Indicator	2023	2024	2025 (Estimates)
World GDP Growth (%)	3.0	3.2	2.8
Avg. Advanced	4.6	2.6	2.5
Economy Inflation (%)
Fed Funds Rate (%)	5.25	4.5	4.25-4.5
Brent Crude (Avg USD/ bbl)	92	80	66
Steel Prices (Global YoY Change)	-3%	-8%	Stable to slight rise in India; global prices expected to decline

Source: IMF, EIA (U.S. Energy Information Administration), and Metals Consulting International (MCI)

The infrastructure and construction sectors globally navigated a complex but opportunity-rich environment shaped by three structural dynamics:

1. Input Cost Normalization: Declining input costs—especially in steel and petroleum derivatives—offered margin relief for EPC firms. This enhanced bid competitiveness and improved working capital cycles for contractors engaged in major infrastructure projects.

2. Acceleration of Green Infrastructure Financing: ESG-linked investments gained significant traction, with over USD 1.2 trillion in green bonds issued globally in 2024.

This capital influx catalyzed project execution in renewable energy, sustainable mobility, and climate-resilient urban infrastructure.

3. Reconfiguration of Supply Chains: In response to geopolitical fragmentation and supply risk concerns, global construction conglomerates and project owners continued diversifying supplier bases.

Indian Economy

Indias macroeconomic performance in FY 2024–25 further reinforced its status as the fastest-growing major economy in the world, recording a real GDP growth of 6.5% as per RBI. This growth unfolded despite an uncertain global environment, marked by geopolitical tensions, supply chain realignments, and monetary tightening across advanced economies. Indias resilience was shaped by a combination of controlled inflation, sustained domestic consumption, steady employment generation, and a policy ecosystem anchored in execution-led governance. The year was notable for the Government of Indias continued fiscal thrust on capital expenditure, aimed at crowding in private investment and addressing infrastructure bottlenecks. Indias expanding economic base, deepening financial markets, goal to bring down logistics costs from 14-16% of GDP to single digit, and improved ease of doing business have collectively strengthened investor confidence, placing the country on a structurally sound growth trajectory toward a potential $5 trillion economy by FY 2029–30.

Union Budget 2024–25: A Unified Infrastructure and Growth Agenda

The Union Budget for FY 2024–25 carried forward the governments vision of building a structurally robust and future-ready Indian economy. The Budget balanced fiscal prudence with a sustained commitment to infrastructure-led growth and inclusive development. At its core was a capital expenditure outlay of 11.11 lakh crore, representing approximately 3.4% of GDP. This marks the fourth consecutive year of significant enhancement in capital spending, highlighting the governments belief in infrastructure as the foundation of long-term economic competitiveness.

Key Budget Highlights (FY 2024–25)	Amount
	( Lakh Crore)
Capital Expenditure	11.11
Fiscal Deficit Target (% of GDP)	5.1
Total Receipts (excluding borrowings)	30.80
Total Expenditure	47.66
Net Tax Revenues	26.02

Source: Union Budget 2024–25, Ministry of Finance, GOI

One of the salient features of the Budget was the continuation of 50-year interest-free loans to states, with a provision of 1.5 lakh crore for FY 2024-25. This loan is to support the states in their resource allocation for infrastructure development and incentivising them for faster implementation of reforms. The governments fiscal strategy is marked by a calibrated path of consolidation, with the fiscal deficit targeted at 5.1% of GDP for FY 2024–25. Total receipts excluding borrowings are budgeted at 30.80 lakh crore, while total expenditure is estimated at 47.66 lakh crore. Net tax revenues are projected at 26.02 lakh crore, supported by robust direct and indirect tax buoyancy. These fiscal parameters reflect a deliberate balance between growth-supportive expenditure and long-term macroeconomic stability.

Sectoral and Policy Highlights

The policy architecture of both the FY 2024–25 and previous budgets has revolved around nine thematic priorities, including infrastructure development, manufacturing & services, energy security, urban development, innovation, employment & skilling, next generation reforms etc. In the infrastructure domain, the governments flagship projects—PM Gati Shakti, Bharatmala, Sagarmala, and National Rail Plan—continued to receive institutional and financial support, with renewed emphasis on multimodal logistics, digital infrastructure layers, and last-mile connectivity.

The government reiterated its commitment to the "Make in India" and "Atmanirbhar Bharat" vision through the continuation of the Production Linked Incentive (PLI) schemes and enhanced support for manufacturing ecosystems. Public funding is being directed toward technology platforms and design innovation to strengthen domestic value chains across electronics, green energy, defence, and construction materials.

Urban development gained new momentum through the next phase of metro rail expansion, transit-oriented development, and affordable housing. The Pradhan Mantri Awas Yojana (PMAY) continued to play a transformative role, with the cumulative target of three crore rural and urban homes reaffirmed. Despite progress, challenges such as land acquisition delays, inter-agency coordination, and timely environmental clearances persist. Addressing these bottlenecks remains critical to fully realizing the benefits of ongoing reforms.

Monetary and Financial Sector Developments

Monetary policy in FY 2024–25 remained focused on price stability and growth revival. The Reserve Bank of India maintained the repo rate at 6.5% through most of the fiscal year before reducing it to 6.25% in February 2025, reflecting improving inflation dynamics and a softening global interest rate environment. Retail inflation averaged 4.5% during the year, within the RBIs tolerance band, helping sustain consumption and maintain purchasing power parity.

Financial flows to infrastructure grew robustly, with credit expansion of 18.7% year-on-year, led by public sector banks and infrastructure-focused NBFCs. The use of blended finance structures, sovereign guarantees, and Infrastructure Investment Trusts (InvITs) enabled wider capital participation. The central banks liquidity operations were designed to maintain systemic stability while facilitating long-duration financing for infrastructure assets.

Looking ahead, the RBIs monetary guidance suggests a further reduction in the repo rate to 6.0% if inflation trends continue a downward path. The GDP growth projection for FY 2025–26 is retained at around ~6.2%-6.7%, reflecting cautious optimism in a global context of fragmentation and flux.

Construction and Infrastructure Sector Performance

The construction and infrastructure sector sustained a high growth trajectory during FY 2024–25, with construction sector Gross Value Added (GVA) rising by 8.6%. However, the sector navigated through temporary headwinds including election-related code of conduct restrictions, which led to delayed project awards in some regions. Additionally, the extended and erratic monsoon season posed operational challenges in several parts of the country, resulting in intermittent delays and increased site management costs.

Despite these challenges, the governments strong infrastructure thrust ensured continued momentum, and the outlook post-election is expected to strengthen further as new policy directives and budget allocations translate into on-ground activity.

Strategic Reforms and Sustainability

The infrastructure sector is increasingly being shaped by strategic reforms and sustainability imperatives. The PM Gati Shakti initiative—through digital planning and coordination across ministries in logistics corridors, energy projects, and industrial parks. Policy support for ESG-compliant infrastructure was visible through expanded viability gap funding for clean mobility, water supply, sanitation, and climate-adaptive urban assets. The government also initiated new frameworks for battery storage, green hydrogen, and circular construction practices, aligning with Indias broader net-zero emission commitments by 2070 and the goal of achieving 500 GW of non-fossil fuel energy capacity by 2030.

Private sector innovation in construction, including modular buildings, AI-led design, and drone-based project tracking, is receiving a boost from targeted R&D incentives. The governments allocation of 20,000 crore for private sector-driven innovation is expected to yield long-term dividends for the infrastructure and construction value chain.

Reflecting these trends, the construction sector remains a leading contributor to Indias economic output, providing employment, capital formation, and physical assets that underpin national development.

Key Domestic Indicators

Indicator	FY 2025-26
GDP Growth (%)	6.2-6.7
Capital Expenditure ( lakh Cr)	11.21
CPI Inflation (%)	4.0

(Source: Ministry of Statistics and Programme Implementation; RBI)

The Union Budget 2024–25 articulates a coherent and forward-looking strategy that integrates increased capital expenditure, disciplined fiscal management, and a vision for a sustainable, innovation-led infrastructure economy.

Industry Structure

Indias construction and infrastructure sector stands at the forefront of national growth, acting as both an economic engine and a development enabler. As one of the fastest-expanding industries globally, the sector is projected to become the third-largest construction market by 2025, with its size estimated to reach 25.31 lakh crore, growing further to 39.10 lakh crore by 2029 at a CAGR of approximately 8.8% (Sources: PIB, NITI Aayog, Business Wire). This momentum is driven by substantial public capital expenditure, rising urban demand, and transformative policy initiatives aimed at modernizing the countrys physical and social infrastructure.

Sources: PIB, NITI Aayog, Business Wire

The Indian infrastructure ecosystem is undergoing a dynamic transformation, shaped by evolving business models, collaborative frameworks, and use of technology. Indias infrastructure sector is evolving with increased policy making focus, regulatory reforms, and a rise in governments investments. The industry is increasingly leveraging public-private partnerships (PPPs) and policy-driven initiatives to execute large-scale, capital-intensive projects. Private sector players now complement government initiatives, especially in sectors such as urban mobility, renewable energy, smart logistics, and climate-resilient infrastructure. These developments have elevated the role of integrated service providers who can offer end-to-end capabilities—ranging from design and engineering to execution and long-term maintenance—making operational scale, digital readiness, and financial resilience key differentiators in winning and delivering complex infrastructure mandates.

The industry spans a broad spectrum of segments, including residential, commercial, industrial, and institutional buildings, alongsidecriticalinfrastructuresectorssuchasroadsandhighways, railways, urban transit, ports, water supply and sanitation, power generation, transmission and distribution, irrigation, and mining. This diversity reflects the scale and complexity of construction activities required to support Indias rapid urbanization, industrial expansion, and economic development goals.

Indias rapid pace of urbanization continues to drive demand across these verticals. With nearly half of the population expected to reside in urban areas by 2046 (Sources: Census of India, NITI Aayog), the need for modernized housing, transport networks, water and sanitation systems, and digital infrastructure is surging. Simultaneously, rising industrialization and logistics expansion are accelerating the development of industrial corridors, multimodal connectivity, and warehousing hubs—linking infrastructure development directly to manufacturing competitiveness and regional economic growth.

Technology and sustainability are becoming core pillars of sectoral evolution. The increasing adoption of digital project management tools, Building Information Modelling (BIM), AI-driven construction monitoring, and environmentally responsible design is improving execution efficiency, minimizing waste, and enhancing compliance with ESG standards. These shifts align with Indias commitments under the National Action Plan on Climate Change and are pushing the industry toward a low-carbon, innovation-driven future.

At the same time, structural challenges remain. The industry continues to be fragmented dominated by local, regional and national players. The industry faces procedural delays in land acquisition and clearances, price volatility in key raw materials like steel and cement, and an ongoing gap in skilled manpower. However, regulatory reforms, digitization of approvals, and workforce skilling initiatives are gradually improving sectoral resilience and ease of doing business.

Key Infrastructure Metrics – 2025

Indicator	Value	Source
Projected Market Size (2025)	25.31 lakh crore	NITI Aayog / Business Wire
Projected Market Size (2029)	39.10 lakh crore	NITI Aayog
Urban Population Share (2047)	50%	Census of India / NITI Aayog
Road Construction Pace (2024)	29 km/day	Ministry of Road Transport and Highways (MoRTH)
National Highways Length (2024)	1.46 lakh km	Ministry of Road Transport and Highways (MoRTH)
Renewable Energy Capacity (2024)	209+ GW	Ministry of New and Renewable Energy (MNRE)
Construction Sector Employment	7 crore people	National Sample Survey Office (NSSO) / NITI Aayog

Against this backdrop, NCC Limited continues to evolve as a trusted infrastructure partner, distinguished by its technical depth, financial discipline, digital adoption, and unwavering focus on quality and safety. With a diversified project portfolio and a strong execution record, the Company is well-equipped to harness emerging opportunities and contribute meaningfully to Indias infrastructure growth story.

Opportunities in Indian Infrastructure & Construction

The Government of India has initiated several schemes for improving the infrastructure across all the sectors. The details of these schemes are indicated below:

1. National Infrastructure Pipeline (NIP)

The National Infrastructure Pipeline, launched in 2019, remains the cornerstone of Indias infrastructure expansion strategy. As of May 2025, the NIP encompasses over 13,100 projects with a committed investment outlay of approximately 165 lakh crore. These projects are distributed across sectors with a clear focus on enhancing connectivity, energy security, urban infrastructure, and water resources.

S. No. Particulars	No. of Projects	Value ( Lakh Crore)	Share (%)
1 Roads & Highways	6,552	45.6	27.7%
2 Railways	878	20.8	12.7%
3 Electricity Generation	393	21.0	12.7%
4 Real Estate	634	17.9	10.9%
5 Irrigation	626	12.6	7.7%
6 Urban Pub Transport	223	8.0	4.9%
7 Trans & Distribution	397	8.1	4.9%
8 Water & Wastewater	1,033	6.4	3.9%
9 Oil & Gas	246	5.8	3.5%
10 Telecommunications	36	3.0	1.8%
11 Healthcare	557	2.2	1.3%
12 Energy Storage	97	2.4	1.4%
13 Education	714	2.3	1.4%
14 Aviation & Avi Infra	145	1.8	1.1%
15 Shipping	91	1.2	0.8%
16 Coal	101	1.2	0.8%
17 Inland Waterways	71	1.1	0.7%
18 Others	315	2.9	1.8%
Total	13,109	164.5	100.0%

Source: National Infrastructure Pipeline, India Investment Grid (IIG), May 2025

Project implementation status reflects a healthy momentum with approximately 46% of projects under active execution, 21% completed, and the remaining 33% in various stages of tendering and development. The funding matrix is balanced, with 39% contributions from the Central Government, 40% from State Governments, and 21% from the private sector, underscoring a collaborative approach to infrastructure creation.

2. PM Gati Shakti – National Master Plan

The PM Gati Shakti initiative epitomizes the governments commitment to integrated and accelerated infrastructure development. By digitally converging 16 ministries onto a single platform, the program facilitates seamless coordination, real-time GIS-based project mapping, and expedited clearances, particularly Right of Way (RoW) approvals. This integrated planning framework significantly enhances project execution efficiency and logistics connectivity.

3. Urban Infrastructure Development: Smart Cities Mission & AMRUT 2.0

The Governments continued focus on urban transformation is evident through flagship programs such as the Smart Cities Mission and AMRUT 2.0, with a combined investment exceeding 7.5 lakh crore. These initiatives prioritize the development of smart roads, advanced stormwater drainage systems, intelligent command and control centers, sustainable water supply and sewage treatment facilities, and affordable housing projects.

4. Jal Jeevan Mission (JJM) - Rural Water Infrastructure

The Jal Jeevan Mission embodies the governments commitment to universal rural water supply, with an allocation of 3.6 lakh crore aimed at providing Functional Household Tap Connection (FHTC) to every rural household by 2024. However, it is extended till 2028 with enhanced outlay. This mission encompasses the construction of water treatment plants, overhead service reservoirs, extensive pipeline networks, and SCADA-enabled pumping stations. As per Department of Drinking Water & Sanitation Ministry of Jal Shakti, total rural households identified for this are 19,36,55,344 and as of 12^th May 2025 tap connections have been provided to 15,59,37,902 households.

Tap Water Supply in households

Source: Jal Jeevan Mission

5. Bharatmala Pariyojana

The Bharatmala Phase-I, approved in 2017, remains the primary focus until 2027–28, with 26,425 km awarded and 19,826 km constructed. The program emphasizes 26,000 km of economic corridors; 8,000 km of inter-corridors; and 7,500 km of feeder routes, alongside 28 ring roads and upgrades at 191 congestion points. Funding relies on petrol/ diesel cess (2.37 lakh crore allocated) and toll monetization, with Phase-Is original scope of 34,800 km now extended beyond 2025 due to land acquisition and cost escalation challenges. The 2025–2030 phase will prioritize multimodal logistics parks (35 locations) and high-speed corridors (6,669 km awarded, 4,610 km built) (Sources: PIB, MoRTH).

6. Railway Infrastructure Expansion

The National Rail Plan 2030 targets 45% freight share through 58 super-critical projects (3,750 km) and 68 critical projects (6,913 km). Key initiatives include 100% electrification by 2026, and station modernization (1,300+ stations) under the Amrit Bharat scheme. The plan allocates 39,663 crore for super-critical routes and 75,736 crore for critical routes, focusing on multi-tracking and dedicated freight corridors. (Sources: PIB, Invest India)

7. Renewable Energy and Transmission Infrastructure

Indias commitment to achieving 500 GW of non-fossil fuel energy capacity by 2030 is supported by substantial investments in renewable energy generation and associated transmission infrastructure. The Union Government has introduced dedicated policies and financial allocations to promote pumped storage hydropower projects, green energy corridors, and smart grid systems.

NCCs Strategic Positioning

NCC Limited stands uniquely poised to harness the momentum of Indias infrastructure surge. The companys diversified and scalable EPC order book, pan-India execution capabilities, and deep domain expertise across buildings, water, power transmission & distribution, and transportation infrastructure (including metro and expressway projects) position it as a preferred partner in nation-building.

By combining engineering excellence with agile project mobilization and a strong focus on quality and sustainability, NCC is not merely a participant but a leader in Indias next wave of infrastructure creation. The companys strategic alignment with government priorities and its commitment to innovation and operational efficiency ensure robust growth and value creation in the years ahead.

Segment Overview

NCC Limited operates a robust and diversified Engineering, Procurement, and Construction (EPC) business model, strategically segmented into seven core verticals. This segmentation aligns closely with Indias national infrastructure development roadmap, leveraging sustained public and private capital inflows. Such diversification enables the company to effectively mitigate execution risks while capitalizing on growth opportunities. The companys deep domain expertise and pan-India presence position it as a preferred partner for government bodies and private sector clients alike.

Buildings

The buildings segment remains NCC Limiteds largest and most dynamic division, reflecting Indias rapidly evolving infrastructure landscape. FY2025 witnessed robust growth driven by sustained demand across residential, commercial, institutional, and industrial infrastructure categories. This growth was supported by a strategic shift from conventional construction towards smart, energy-efficient, and integrated public assets.

The Indian governments strong capital expenditure focus, along with a resurgence in private sector investments in urban - real estate, significantly propelled activity in this segment. Key growth areas included logistics parks and warehousing, fuelled by the expanding e-commerce and FMCG sectors. Demand for plug-and-play industrial facilities surged, especially in industrial corridors such as the Delhi-Mumbai Industrial Corridor (DMIC). Data centre construction also emerged as a significant new vertical, particularly in Mumbai, Hyderabad, and Chennai.

Indias strategic emphasis on expanding critical institutional infrastructure—such as premier educational campuses (IITs, IIMs, NITs), airports and terminals, government offices, healthcare facilities including AIIMS and ESIC hospitals, affordable housing, and urban infrastructure—has generated a substantial pipeline of projects. Flagship government schemes like the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), Pradhan Mantri Awas Yojana (PMAY), and the regional air connectivity initiative UDAN have played a key role in improving accessibility, quality, and sustainability of public infrastructure.

A notable trend in FY2025 was the increasing adoption of Green Building Certifications such as IGBC and GRIHA across residential and commercial developments. The integration of solar rooftops, rainwater harvesting, and smart lighting systems reflects a growing commitment to sustainability. Government initiatives promoting energy-efficient public buildings have further accelerated this trend. The Union Housing and Urban Affairs Ministrys budget for FY2026 was raised by 18% to Rs. 96,777 crores, with major allocations for urban development, housing, and street vendor support.

Capabilities: NCCs pan-India footprint and strong relationships with Central Public Works Department (CPWD), Ministry of Housing and Urban Affairs (MoHUA), and state PSUs like Maharashtra State Road Development Corporation Limited (MSRDC), Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) underpin its leadership in delivering complex EPC and Design-Build projects. The companys in-house teams for engineering design, structural, MEP, and green building design ensure comprehensive execution excellence.

Transportation

Transportation segment remains a key contributor to Indias infrastructure growth, actively supporting the countrys ongoing efforts to expand and modernize its transportation network. With a strong emphasis on enhancing national connectivity and optimizing the movement of goods and people, the segment is well-aligned with Indias broader goals of building a more efficient and integrated transport system. Key government initiatives like Bharatmala Pariyojana and the PM Gati Shakti National Master Plan are driving the development of highways, expressways, and urban transit systems, while promoting integration across roads, railways, metros, and ports to enhance supply chain efficiency.

States are also advancing new expressway corridors to strengthen regional links and trade routes. Modernization efforts in tolling and traffic management are improving operational efficiency and commuter experience. Rapid metro network expansion supports sustainable urban growth. Supported by strong public and private investment, these initiatives are positioning Indias transportation infrastructure as a vital driver of economic growth and competitiveness.

Key National Programs & Investment Targets:

Program / Policy	Focus Area	Investment Target	Timeline
Bharatmala Pariyojana	65,000 km highway network	10.63 lakh crore	FY2018–28
NHAI Toll Modernization	ETC, FASTag, Intelligent Traffic Management	15,000 crore	FY2024–26
Gati Shakti – Road/Metro Sync	Multimodal project planning and connectivity	1.5 lakh crore (across modes)	FY2022–30
State Expressway Corridors	Bundelkhand, Purvanchal, Chennai–Salem,	2 lakh crore+	FY2023–28
	Konkan, Nagpur-Goa

Sources: Ministry of Road Transport and Highways (MoRTH), National Highways Authority of India (NHAI), Ministry of Housing and Urban Affairs (MoHUA)

Capabilities: Companys expertise spans across expressways, metro rail systems, and elevated corridors with advanced execution techniques such as precast segment launching. The company is experienced in executing turnkey projects across multiple states.

Water & Environment

Water infrastructure remains a critical national priority for India, as the country continues to address longstanding challenges related to intermittent water supply and water quality in both rural and urban areas. Ensuring reliable access to clean and safe water is essential for public health, economic development, and overall quality of life. To tackle these issues, the Government of India has significantly increased its focus and investment in water infrastructure through flagship programs such as the Jal Jeevan Mission (JJM), AMRUT 2.0, and the Swachh Bharat Mission (Urban). These initiatives aim to provide universal household tap connections, improve urban water supply and sanitation, and promote sustainable water management practices. The flagship scheme of Jal Jeevan Mission (JJM), which had ended in FY2024 has been further extended till FY 2028 with generous budgetary support. With a combined budget allocation exceeding multiple lakh crore over the coming years, these programs are driving large-scale infrastructure development, enhancing water availability, and improving sanitation standards across the country, thereby supporting Indias broader goals of health, hygiene, and sustainable growth.

Government Investment Programs:

Scheme / Program	Scope	Budget Allocation	Target Year
Jal Jeevan Mission (JJM)	Tap water to all rural households	3.6+ lakh crore	FY2028
AMRUT 2.0	Universal urban water supply & sewage coverage	2.8 lakh crore	FY2027
Namami Gange 2.0	Pollution abatement in Ganga basin	3,500 crore	FY2026
Swachh Bharat (Urban)	Solid and liquid waste management in urban local bodies	5,000 crore	FY2026
World Bank/ADB Assistance	Rural piped water and sanitation co-funded programs	$380 crore (approx.)	FY2025–28

Sources: Ministry of Jal Shakti, Ministry of Housing and Urban Affairs, National Mission for Clean Ganga (NMCG)

Capabilities: NCC is involved in the execution of several piped water supply projects to provide Functional Household Tap Connection (FHTC) on turnkey basis. In addition, the company also has expertise in executing Wastewater Treatment Plant (WTPs), Sewerage Treatment Plants (STPs) using advanced engineering, design technologies.

Electrical (Transmission & Distribution)

Indias clean energy transition and electrification goals have accelerated expansion of transmission and distribution (T&D) infrastructure. The central government is implementing two key initiatives to strengthen the energy system, integrate RE sources and reduce losses: Green Energy Corridor (GEC) at the transmission level and the Revamped Distribution Sector Scheme (RDSS) at the distribution level.

Together, these initiatives are driving critical infrastructure upgrades that align with Indias vision for a sustainable, resilient, and efficient power sector. The National Electricity Plan (NEP) 2023-2032 outlines ambitious targets as listed below:

Parameter	Details
Plan Period	2023–2032
Peak Demand Target (2032)	458 GW
Total Investment Outlay	9.15 lakh crore
Transmission Network Expansion	4.85 lakh ckm (2024) to 6.48 lakh ckm (2032)
Transformation Capacity	1,251 GVA (2024) to 2,342 GVA (2032)
HVDC Lines Addition	9 new lines (33.25 GW capacity)
Inter-Regional Transfer Capacity	119 GW (current) to 168 GW (2032)
Transmission Voltage Level	220 kV and above
Focus Areas	Renewable energy integration, grid reliability, and smart grid modernization.

Source: PIB Release on National Electricity Plan

National Demand Drivers:

Scheme / Initiative	Focus Area	Investment Target	Target Year
Revamped Distribution Sector Scheme (RDSS)	Reduce AT&C losses, smart meters, grid automation	3.03 lakh crore	FY2026
Green Energy Corridors Phase-III	Renewable evacuation infrastructure (solar, wind)	56,000 crore	FY2030
National Smart Grid Mission	Real-time grid monitoring, AMI, reliability	2,500 crore	Ongoing

Sources: Ministry of Power, Power Finance Corporation, RDSS Portal

Capabilities: NCC offers end-to-end EPC services including design, procurement, installation, and testing of substations, overhead lines, and smart grid components. The company has expertise in GIS-based substations, SCADA integration thus ensuring rapid mobilization and compliance with stringent QHSE standards.

Irrigation

Irrigation infrastructure plays a crucial role in sustaining Indias agricultural productivity and supporting the livelihoods of millions of rural households. In the face of increasing climate variability and growing water scarcity, the government has placed a strong emphasis on ensuring equitable water distribution and enhancing the efficiency of irrigation systems. Through flagship programs such as the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), the government aims to expand irrigation coverage, improve water use efficiency, and promote sustainable agricultural practices. Additionally, projects supported by the National Bank for Agriculture and Rural Development (NABARD) focus on the development and modernization of command areas, strengthening water management at the grassroots level. These combined efforts are designed to optimize water resources, increase crop yields, and improve the resilience of farming communities against climate-related challenges, thereby contributing to Indias broader goals of food security and rural development.

National Programs & Investments:

Program / Scheme	Focus Area	Investment	Target Year
PM Krishi Sinchayee Yojana (PMKSY) + States sponsored packages	Accelerated Irrigation Benefit Program (AIBP), watershed, micro-irrigation	93,000+ crore	FY2026
NABARD Infrastructure Support	Rural water and canal infrastructure	30,000+ crore	Ongoing
State Bond-Funded CAD Projects	Telangana, Maharashtra, Gujarat	60,000+ crore	FY2027

Sources: PMKSY Dashboard, NABARD Reports, Ministry of Jal Shakti

Capabilities:

NCC excels in executing complex irrigation projects like Dams & Reservoirs, Tunnels, Barrages, Spillways and Aqueducts, canal modernization, and command area watercourse construction, deploying advanced automation and surge protection systems.

Mining

Indias increasing demand for domestic coal and critical minerals has accelerated the need for efficient and environmentally compliant mining operations. To meet this need, public sector undertakings (PSUs) and thermal power generators are engaging private EPC contractors under the Mine Developer and Operator (MDO) model — a structure where a contractor handles everything from land preparation, excavation till transport to client site and environmental compliance. India achieved a historic milestone by surpassing one billion tonnes (BT) of coal production in FY 2024-25. With the fifth-largest coal reserves and as the second-largest consumer, coal remains crucial, contributing 55% to the national energy mix and fuelling over 74% of total power generation.

Capabilities:

NCC offers integrated mining and civil expertise, delivering mine development, overburden removal, haulage, roads, site drainage, and water management as a single comprehensive package. The company has access to a specialized equipment fleet, including high-tonnage dumpers, excavators, surface miners and dozers, supported by in-house operators and mechanical staff to ensure efficient project execution.

Railways

Indias railway infrastructure is undergoing a comprehensive modernization push, with a focus on doubling routes, electrification, signalling upgrades, and the redevelopment of stations into world-class transport hubs. With over 2.52 lakh crore allocated in the Union Budget 2025–26 to Indian Railways — the largest capex for any sector — this segment offers high-growth potential.

Indian Railways aims for full network electrification, faster freight transit, and enhanced commuter experience through PPP-based station redevelopment, track capacity augmentation, doubling Dedicated Freight Corridor operations, and improved integration with logistics hubs and ports. These initiatives collectively focus on modernizing infrastructure, boosting freight efficiency, and upgrading passenger amenities.

Capabilities

NCC possesses significant experience in executing railways projects from design to execution incorporating all critical components. The company has expertise in Electrification,

Signalling & Telecommunication (S&T) works, while adhering to high-voltage safety standards and utilizing RDSO-approved systems.

NCC Limiteds diversified segment portfolio is well-positioned to capitalize on Indias ambitious infrastructure development agenda. The Companys integration of cutting-edge technology, adherence to stringent quality and safety standards, and deep government partnerships underpin its ability to deliver large-scale, mission-critical projects across building, transportation, water, electrical, irrigation, mining and railway sectors. With the governments sustained capital infusion and policy support, NCC is poised for robust growth and enhanced stakeholder value creation in the coming decade.

Outlook

Infrastructure development continues to be a key driver of Indias economic growth. The Union Budget 2025–26 has allocated 11.21 lakh crore (3.1% of GDP) for infrastructure, with a total effective outlay of 19.8 lakh crore (5.5% of GDP). This is supported by the proven multiplier effect of infrastructure spending, estimated to boost GDP by 2.4 times.

Outlays for Major Schemes: Union Budget 2025-26

The outlays for major schemes of the union government and by various agencies for FY2026 are given below: -

S. No. Description	Budget Outlays ( Crore)
1 Railways	2,52,000
2 NHAI	1,70,266
3 Road Works (MoRTH)	1,16,292
4 JJM (Rural)	67,000
5 PM Awas Yojna (Grameen)	54,832
6 PM Awas Yojna (Urban) & 2.0	23,294
7 Metro Rail	31,239
8 RDSS	16,021
9 Construction Works (Defence)	11,452
10 AMRUT & Smart Cities	10,000
11 PM Krishi Sinchai Yojna	8,260
12 Swachh Bharat (Gramin)	7,192
13 Border Roads Dev Board	7,135
14 National Health Mission	7,000
15 Swachh Bharat Mission	5,000

Source: Ministry of Finance, Government of India

Nuclear Energy Mission

Development of about 100 GW of nuclear energy by 2047 is planned for achieving the energy transition. Further, a Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of 20,000 crore will be set up and at least five indigenously developed SMRs will be operationalized by 2033. (Source: Union Budget 2025–26)

Asset Monetization Plan 2025-30

The Asset Monetization Plan 2025-30 (announced in union budget 2025-26) will be launched to plough back 10 lakh crore in new projects, to leverage the existing public infrastructure assets and create non-tax revenue to reinvest in new infrastructure projects. The sector-wise monetisation targets are: -

Source: PIB

Skilling for Infrastructure Growth

The government has launched a 60,000 crore initiative over five years to upgrade 1,000 Industrial Training Institutes (ITIs) and establish five National Centres of Excellence (NCOEs). This centrally sponsored scheme, co-funded by the Centre, states, industry, and supported by the Asian Development Bank and World Bank, aims to add industry-relevant courses and build advanced training facilities. It targets skilling 20 lakh youth and training 50,000 instructors, bridging the gap between industry needs and workforce skills. A key feature is an industry-led Special Purpose Vehicle (SPV) to manage ITI upgrades, ensuring alignment with market demands. This initiative complements schemes like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and supports the Viksit Bharat 2047 vision (Source: PIB).

Despite challenges like input cost fluctuations and geopolitical risks, Indias infrastructure sector is resilient and growing. Stable governance, continued public investment, and improved institutional mechanisms are expected to keep the momentum strong. In this context, NCC Limited remains focused on sustainable growth, operational excellence, and long-term value creation. The company is committed to playing a key role in advancing Indias infrastructure and contributing to the nations broader economic and strategic goals.

OPERATIONAL PERFORMANCE - Consolidated a. Revenue from Operations: The Group reported a Revenue from Operations of 22199.36 crores during the year 2024-25 as against 20844.96 crores in the previous year, resulting in an increase of 6%. b. EBIDTA: The Group reported an EBIDTA of 1918.07 crores as against 1768.88 crores in the previous year. The increase is primarily on account of increase in Turnover during the year. There is an increase in EBIDTA margin from 8.49% to 8.64% during the year 2024-25. c. Net profit: The Group reported Net Profit attributable to Shareholders of the Company of 819.88 crores as against

710.69 crores in the previous year and reported growth of 15%. The modest increase is due to increase in volume of operations.

OPERATIONAL AND FINANCIAL PERFORMANCE - Standalone

a. Revenue from Operations: The Company has reported a Revenue from Operations of 19205.30 crores during the year 2024-25 as against 18314.41 crores in the previous year, resulting in an increase of 5%.

b. Other Income: Other income comprises of Interest on loans & advances, Interest on Bank Margin Money deposits, interest on income tax refund, Profit on Sale of Property, Plant and Equipment, Investment Property(net) and miscellaneous income. The other income of the company for the year was 187.01 crores as against 124.10 crores of the previous year.

c. Direct cost: The direct cost for the year under review works out to 85.17% of the turnover as against 85.86% in the previous year.

d. Overheads: Overheads comprising salaries and administrative expenses, is 1102.78 crores for the year under review as against 941.85 crores in the previous year. The increase of 17%, in absolute terms amounts to 160.93 crores over the previous year and there is an increase as a percentage of Turnover from 5.14% to 5.74% in overheads cost.

e. Finance cost: The Finance cost during the year has increased to 652.70 crores from 595.11 crores of the previous year. The increase is mainly on account of the increase in average utilization of borrowings and volume of utilization of BGs & LCs.

f. Depreciation: The Companys depreciation for the year has increased from 209.21 crores to 212.92 crores.

g. Tax Expense: The tax expense of the company for the year 2024-25 is 267.27 crores as against 279.87 crores of previous year.

h. EBITDA: The Company has reported an EBITDA of

1745.60 crores as against 1648.12 crores in the previous year. The increase is primarily on account of increase in Turnover during the year. EBITDA margin reported at 9.09% as against 9.00% of the previous year.

i. Net profit: The Company has reported a Net Profit of 761.09 crores as against 631.48 crores in the previous year and reported a growth of 21%. The Increase is mainly due to increase in volume of operations.

j. Total Comprehensive Income: The Company has reported a total Comprehensive Income of 762.22 crores as against 628.94 crores in the previous year.

k. Dividend: The Board of Directors have recommended a dividend of 2.20/- per share (110%) for the year under review and the dividend works out to 138.13 crores as against 138.13 crores in the previous year.

l. Return on Equity: The Company has reported return on equity at 10.68% for the year under review as against 9.62% reported in the year 2023-24. The increase is primarily on account of increase in margins of operations.

Equity & Liabilities:

a. Net worth: The Companys net worth increased from 6812.69 crores to 7436.78 crores. The increase of 624.09 crores is primarily on account of internal generation of profits.

b. Borrowings (Long-Term & Short-Term): During the year under review the borrowings increased by 479.01 crores from 1005.03 crores to 1484.04 crores.

Assets: a. Property, Plant & Equipment (PPE): The Companys PPE (gross block plus Capital WIP) increased by 245.16 crores (net) in 2024-25 from 2673.00 crores to 2918.16 crores. The increase in PPE is mainly for new projects received during the year 2024-25.

b. Investments: The net investments increased by 31.87 crores, from 1033.35 crores to 1065.22 crores during the year 2024-25.

c. Inventories: The Companys inventories stand at 1391.99 crores as against 1433.78 crores of the previous year.

d. Trade Receivables (Current & Non-Current): The Companys trade receivables increased by 306.66 crores in 2024-25 from 2791.06 crores to 3097.72 crores.

e. Loans (Current & Non-Current): Loans comprise loans given to group companies, other corporates and employees. Loans increased from 368.75 crores to 467.75 crores during the year under review.

Cash Flow:

During the year the Company reported Net cash inflows from operating activities of 815.78 crores as against 1299.40 crores, Net cash used in investing activities 218.83 crores as against 332.51 crores and Net cash used in financing activities 311.14 crores as against 705.80 crores in the previous year.

Key Financial Ratios

S. No Ratio	FY 2024-25	FY 2023-24	% of change	Reasons for change in the ratio by more than 25%
i) Current Ratio	1.31	1.31	0%	-
ii) Debt-Equity Ratio	0.20	0.15	-33%	Change due to high utilization of borrowings due to low collections from customers
iii) Interest Coverage Ratio	6.01	6.59	-9%	-
iv) Inventory Turnover Ratio	13.59	14.58	-7%	-
v) Trade Receivables Turnover Ratio	6.52	6.39	2%	-
vi) Operating Profit Margin (%)	9.09%	9.00%	1%	-
vii) Net profit ratio	3.96%	3.45%	15%	-
viii) Return on Net Worth	10.68%	9.62%	11%	-

Order Inflow and Order Book

During the year the Company received orders of 32888 crores as against 27283 crores received in the previous year 2023-24. The group order book stands at 71568 crores as at the end of the year registering a growth of 18% over the previous year.

Division-wise Order Book mix as of 31.03.2025

INTERNAL CONTROL SYSTEM:

The Company has adequate system of Internal Controls to help Management review the effectiveness of the Financial and Operating Controls and assurance about adherence to Companys laid down Systems and Procedures. As per the provisions of the Companies Act, 2013, Internal Controls and documentation are in place for all activities. Both Internal Auditors and Statutory Auditors have verified the Internal Financial Controls (IFC) at entity level and operations level and satisfied about control design and operating effectiveness. The evaluation included documentation review, inquiry, inspection, testing and other procedures. The controls are reviewed at regular intervals to ensure that transactions are properly authorized, correctly reported and assets are safeguarded. The Audit Committee periodically reviews the findings and recommendations of the Auditors and takes corrective action as deemed necessary. The Company is adopting digital solutions on an ongoing basis to further strengthen the internal control mechanism commensurate with the Companys growth.

RISKS AND CONCERNS:

The Company has an integrated and structured Enterprise Risk Management process to manage risks with the ultimate objective of maximizing stakeholders value. The risk management system at the Company has the following key features:

• Risk Management Committee review

• Appropriate policies, procedures and limits

• Comprehensive and timely identification, measurement, mitigation, controlling, monitoring and reporting of risks

• Appropriate Management Information Systems (MIS) at the business level

• Comprehensive internal controls as required for business operations and governing laws and regulations Some of the key risks that the Company faces along with their mitigation strategies adopted are listed below: Political Risks: The Company has operations in multiple locations in multiple states and is consequently subject to various geopolitical risks. Appropriate mitigation strategies are in place to address the same.

Competition Risks: There has been an increase in the number of operators in the niche segment that the Company functions in. However, the Companys competitive advantage is derived from experienced workforce, quality and timely delivery, strong track record, technical expertise, financial strength, brand equity and regular engagement with Clients and representatives.

Operational Risks: To suit the project requirements, due care is exercised in the selection of sub-contractors, vendors, key technical and non-technical employees, insurance coverages, financial tie-ups, timely obtaining of Right of Way, designs and drawings etc. Identification of associated risks and initiation of mitigation measures are helping the Company to address the operational risks.

Market Risks: Securing orders is always a big challenge for Construction Companies and the same depends upon potential in various States and Departments. In order to mitigate the market risks and to ensure continuous order booking, the Company is operating multi-segments such as Buildings & Housing, Transportation, Water, Railways, Electrical, Irrigation and Mining. The Company strategically participates in bids using its multi-segmental experiences.

Working Capital Risks: Project delays, cost overruns and consequent delays in receipt of payments from the Clients lead to an increase in working capital requirement. There is a process of close monitoring and follow-up with the Clients for timely approvals and payments for better working capital management.

Contract & Claims: In the competitive environment, to address the foreseeable litigations and claims, the Company maintains a robust documentation and follow up mechanism with Clients, sub-contractors and vendors to address related claims, disputes etc. To mitigate the possible risks due to the differences and disputes with the Clients, sub-contractors and vendors, the Company uses its in house capabilities in handling Contracts & Claims.

Cyber Security Risks: With increasing use of IT in business areas and as systems get interconnected, cyber security becomes an important challenge for the organization in order to protect its information and systems so as to maintain confidentiality, data integrity and to prevent loss of data. The Company has implemented a cyber-security framework to identify, detect and prevent such risks. The Company has been focusing on systematic communication of possible cyber risks and the remedial measures to be followed through awareness programs for all the employees concerned.

Talent Risks: The large volume of projects by both the Central and State Governments of India has increased the demand for key skill sets and as such, talent risks are likely to persist. Through continuous trainings, institution of rewards and recognition, the Company is able to attract and retain the talent pool.

Financial Risks: Financial risk management is governed by the Risk Management Framework and Policy approved by the Company under the guidance of the Board. To mitigate financial risks, we maintain robust budgeting and forecasting processes, rigorous project cost tracking, and diversify both our Client & Supplier base to reduce exposure to market volatility. Regular financial scenario planning and risk assessments also help ensure stability and informed decision- making across all operations.

Supply Chain Risks:These risks have risen due to the volatile geopolitical environment and in the long-term, persistence of these challenges may result in adverse outcomes. The Company has long-term tie ups with the suppliers and strategic arrangements for uninterrupted supplies.

Climate Change: Climate change increases the impact and likelihood of some physical risks, which could lead to execution disruption and losses. Some of the major challenges are: a. Heavy and unforeseen rains poses a significant risk to project schedules b. Climate change poses an additional burden in terms of higher contingencies and insurance costs c. Availability of adequate water due to changing rainfall patterns To mitigate such risks, we conduct assessments both at the bidding stage and also during the project execution. Other proactive measures include participating in tenders for projects with green energy choices, rescheduling work-rest cycle taking into account extreme weather patterns, enhancing site drainage and safety protocols etc.

The Company has implemented ISO 14001 to guide effective environmental management systems and ISO 45001 to enhance occupational health and safety, ensuring our workforce is protected during extreme climate-related events.

HUMAN RESOURCES

At NCC, the biggest asset is our employees. We have always aspired to be an organisation, and a workplace committed to helping its people gain varied experiences, accomplish challenging assignments, learn continuously and build their careers while delivering for stakeholders. Our philosophy of building leaders from within continues to guide our actions towards identifying, developing, and nurturing talent. With greater emphasis on futuristic thinking, digital mindset and commitment to nation building, we have made significant shifts towards developing our people for the future. The Company provides an environment that helps individuals to showcase their talents and rewards performance and results. This challenging workplace has helped NCC attract, develop, and retain talent, and we have done this successfully for over four decades. The total human capital base of the company as of 31^st March 2025 stood at 31,408 (employees and workers both permanent and non-permanent) consisting of people from diverse backgrounds, educational qualifications and a wealth of experience from across the Industry.

Learning & Development

The L&D interventions at NCC are designed to provide employees continuous learning opportunities to enhance their conceptual and practical skills. These initiatives enable employees to upgrade existing skills and acquire new skills relevant for their Job Role. Our comprehensive learning offerings include in-person classroom sessions, virtual sessions as well as on- the- job-training workshops through both internal and external experts. Employees are also sponsored to attend external training programmes for specialized needs. Extensive technical induction training is provided to new campus hires to become productive and contribute at site immediately after deployment. These long-term induction programmes are hands-on in-person programmes and include Site visits and Panel reviews. Additionally, Our E-learning platform provides 100+ self-learning courses on mobile and PC, covering areas of Leadership, Management, Technology, Safety & Compliance. During the Financial Year 2024-25, a total of 396 training programs were organized at various project sites, HO and external venues.

Employee Engagement

We believe that our employees are partners in our progress. The structure of our working lives encourages innovation, knowledge sharing and collaboration for long-term success. Our core values: Openness and Trust; Integrity and Reliability; Teamwork and Collaboration; Commitment; Creativity are our guiding principles and define our identity. Our employees are encouraged to share ideas, work together, and understand that it is the collective strength of a team that makes us successful. The well-being of the employees at all project locations is a central concern. NCC Limited has always focused on various employee engagement initiatives for the benefit of employees and their families.