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NCC Ltd. witnessed a sharp rise in its stock price on March 26, 2025, surging over 6% following the announcement of two major advance work orders from Bharat Sanchar Nigam Limited (BSNL).
The public sector unit has secured contracts totaling ₹10,804.56 crore for telecom infrastructure projects in Uttarakhand, Madhya Pradesh, and the union territories of Dadra & Nagar Haveli and Daman & Diu.
Details of the Contracts
The orders pertain to the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network of BharatNet:
- Uttarakhand Telecom Circle: The contract for this region is valued at ₹2,647.12 crore.
- Madhya Pradesh, Dadra & Nagar Haveli, and Daman & Diu Telecom Circles: This contract is worth ₹8,157.44 crore.
Both projects have a scheduled completion period of three years, followed by an additional ten-year maintenance period.
Market Reaction and Stock Performance
The announcement of these large-scale contracts resulted in NCC Ltd.’s share price climbing over 6% during early trading hours.
The positive development comes as a boost for the company’s stock, which had seen a decline of around 16% over the past year and 33% in the past six months.
Analysts view these projects as a significant step for NCC Ltd., strengthening its presence in the telecom infrastructure sector and reinforcing investor confidence in the company’s growth trajectory.
Significance of the BharatNet Initiative
BharatNet is a crucial government-backed initiative aimed at expanding broadband connectivity in rural India.
By winning these contracts, NCC Ltd. is set to play a vital role in strengthening the country’s digital infrastructure, particularly in underserved regions.
With these substantial project wins, industry experts anticipate further positive momentum for NCC Ltd., making it a stock to watch in the coming months.
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