NCC shares recover after declining 10% post NHAI debarment for two years
Published on 19/02/2026 10:01 AM
NCC shares recover after declining 10% post NHAI debarment for two yearsNCC on Wednesday said that as per the order, the company and its step-down subsidiary OB Infrastructure Ltd. have been debarred from participating in any tender/bids issued by NHAI for two years, with effect from February 17, 2026.By Shloka Badkar February 19, 2026, 10:01:50 AM IST (Published)2 Min ReadShares of NCC Ltd. tanked on Thursday, February 19, after the company received an order of debarment from the National Highway Authority of India (NHAI).
NCC on Wednesday said that as per the order, the company and its step-down subsidiary OB Infrastructure Ltd. have been debarred from participating in any tender/bids issued by NHAI for two years, with effect from February 17, 2026.
The debarment was issued under the MoRTH policy in connection with the project executed by OBIL for the design, engineering, construction, development, finance, operating and maintenance of 220km to 255km of Orai-Bhognipur Section on NH-25 and 421km to 449km of the Bhognipur-Barah Section on NH-2 in Uttar Pradesh on BOT (annuity) basis, the company said.
OBIL had constructed and maintained the project as per the concession agreement dated April 27, 2006. The execution of the project had been delayed due to delay in handing over the land and various other breaches by NHAI, the company said. OBIL had initiated arbitration proceedings against NHAI and received favourable award on November, which the latter challenged before the Delhi Court. The same is now pending.
NCC said there are a few other disputes between OBIL and NHAI regarding the execution and maintenance of the project. OBIL initiated arbitration proceedings against NHAI regarding the disputes in September 2025. NHAI initiated the current debarment proceedings during the pendency of the arbitral proceedings, NCC said.
The company said it is reviewing the order and will take appropriate steps as per applicable law.
"OBIL is contending that the said debarment order has been issued after the completion of the concession period without providing the opportunity of being heard, in violation of principles of natural justice and shall challenge the same as per the law," NCC said in an exchange filing.
The company said there is no financial or operational impact on its existing orders and ongoing projects.
The impact, if any, on future tenders will depend on business opportunities arising during the debarment period. At present, no quantifiable financial impact can be ascertained.
NCC shares declined 9.9% to hit an intraday low of ₹135 per share. However, the stock later recovered from its lows and was trading 0.8% lower at ₹148.83 apiece around 9.45 am on Thursday. The stock has declined 24% in the past year.
Also Read: B L Kashyap shares jump 9% after ₹300 crore order win in Greater Noida
Continue ReadingTagsNCCNHAIshare market today