Shares of NCC Ltd dropped about 10% to hit a 52-week low after the National Highways Authority of India imposed a two-year ban on the company and its step-down subsidiary OB Infrastructure Ltd from participating in its tenders.
The restriction, effective from February 17, 2026, bars the company from bidding for NHAI projects in any capacity, including as EPC contractor, concessionaire or consortium partner. The move triggered heavy selling in the stock as investors grew concerned about the impact on future order inflows.
NCC said the action is related to disputes in certain BOT (annuity) road projects. The company added that project delays were mainly due to issues such as land availability and other contractual constraints, and it is reviewing the order for possible legal action.
The decline in the share price also comes amid weak recent quarterly earnings, further dampening investor sentiment. The stock is now trading well below its 52-week high, reflecting a cautious market outlook.
The company clarified that the ban will not affect its existing order book or ongoing works. However, NHAI is a key client for highway developers, and the inability to bid for fresh projects for two years is expected to weigh on growth visibility.
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