NCL Buildtek Limited is an unlisted building-materials company from Hyderabad. Its 40th Annual Report, covering FY2025-26, shows a year where sales went up but profit went the other way. The cover of the report says “Driven by Growth”, yet the Managing Director’s letter says the immediate priority is to restore profitability.
This article walks through what the numbers show: where the company makes its money, which divisions slipped, what happened with a German joint venture, and what management says it will do next. All figures are standalone and taken from the source material.
The headline numbers
Net revenue from operations rose 6.6% to ₹431 crore. Gross revenue rose to about ₹503 crore from ₹471 crore.
Profit did not follow. EBITDA, which is operating profit before interest, tax, depreciation and amortisation, fell 27.5%, from ₹36.7 crore to ₹26.6 crore. Profit before tax (PBT) excluding exceptional items dropped 88.9%, from ₹12.3 crore to ₹1.4 crore. Earnings per share, also excluding exceptional items, came in at ₹0.70, against ₹7.42 a year earlier.
Profit after tax for the full year was ₹85 lakh. The company has ₹451 crore of assets and ₹228 crore of equity.
What NCL Buildtek does
The company is the building-materials arm of the Hyderabad-based NCL Group, the same promoter family behind the listed cement company NCL Industries. It has operated since 1986, was earlier called NCL Alltek & Seccolor, and remains unlisted.
It reports three segments:
- Windoors: colour-coated GI profiles (CCGI), uPVC and aluminium windows and doors, ABS doors, and steel doors since FY25. This is about half the business.
- Walls: AAC (aerated fly-ash) blocks.
- Coatings: wall putty, paints, textures and tile adhesives.
Its plants are in Telangana (Mattampalli, Ratnapuri, Gundlapochampally), Andhra Pradesh (Kondapalli, Amudalapadu) and Rajasthan (Keshwana). Paid-up equity is 1,15,69,700 shares of ₹10 each, and the Kalidindi family holds the bulk of them.
On listing, the FY26 Directors’ Report says the Board has deferred its plans until a more suitable time. Management does not currently see a need to raise funds through a public issue, and members will be told if that changes.
Six years of sales and profit
The company publishes a six-year record of net turnover and profit after tax. Here it is, in ₹ lakh:
| Year | Net turnover | Profit after tax |
| FY21 | 26,489 | (700) |
| FY22 | 40,748 | 696 |
| FY23 | 45,035 | 1,345 |
| FY24 | 43,549 | 1,593 |
| FY25 | 40,420 | 6,846* |
| FY26 | 43,098 | 85 |
*FY25 includes a one-time gain on the sale of the company’s stake in NCL Veka Pvt Ltd.
After the jump in FY22, turnover has stayed in a band of roughly ₹404 crore to ₹450 crore.
The FY25 profit needs care. The ₹68.5 crore figure includes a ₹69.96 crore exceptional gain from selling the Veka stake. Without it, FY25 profit after tax was roughly ₹8.6 crore. Some data platforms still show the higher figure, and it will not repeat.
Segment performance
Segment data shows where the problem sits. Revenue by segment, in ₹ crore:
| Segment | FY23 | FY24 | FY25 | FY26 |
| Windoors | 223.79 | 213.31 | 202.61 | 220.45 |
| Walls (AAC blocks) | 125.01 | 126.55 | 102.75 | 100.66 |
| Coatings | 101.55 | 95.63 | 98.85 | 109.88 |
| Total | 450.35 | 435.49 | 404.20 | 430.98 |
Segment results before finance cost, in ₹ crore:
| Segment | FY23 | FY24 | FY25 | FY26 |
| Windoors | 20.01 | 18.45 | 13.22 | 0.60 |
| Walls (AAC blocks) | 2.04 | 7.55 | 1.27 | 0.60 |
| Coatings | 13.42 | 12.40 | 10.48 | 11.58 |
| Unallocable | (0.64) | – | – | – |
| Total segment result | 34.83 | 38.40 | 24.96 | 12.78 |
| Less: finance cost | 16.62 | 15.37 | 12.67 | 11.40 |
| PBT from ordinary activities | 18.21 | 23.03 | 12.29 | 1.37 |
These results are before finance cost and before exceptional items. FY26 also carries ₹0.27 lakh of unallocated expense.
Profit as a share of revenue tells the same story:
| Segment | FY23 | FY24 | FY25 | FY26 |
| Windoors | 8.9% | 8.7% | 6.5% | 0.27% |
| Walls | 1.6% | 6.0% | 1.2% | 0.60% |
| Coatings | 13.2% | 13.0% | 10.6% | 10.5% |
Windoors and Walls now earn close to nothing on their sales. Coatings, the smallest segment, produces nearly all the segment profit.
Why Windoors stopped earning
A shrinking main product
In his letter, Managing Director Bh. Subba Raju says the CCGI business has declined by approximately ₹75 crore since FY23, as the market shifted from CCGI to uPVC. The Blocks business declined by approximately ₹25 crore over the same period, amid intense competition from local and unorganised players.
That is about ₹100 crore of lost revenue. Total revenue moved only from ₹450 crore to ₹431 crore, so other products filled much of the gap: aluminium, uPVC, steel doors and tile adhesives.
Pricing that didn’t cover costs
The MD says a significant portion of the FY26 uPVC business was priced in a way that did not reflect the underlying cost structure and required margins. It helped revenue and volume but hurt divisional profit.
The Directors’ Report says the same thing in its Schedule V disclosure. The company needs shareholder approval to pay managerial remuneration because profits were inadequate. The stated reason is that profits were inadequate despite higher revenue, mainly because of pricing pressure in Windoors from aggressive project-segment pricing and intense competition.
| Windoors | FY24 | FY25 | FY26 |
| Segment revenue (₹ cr) | 213.31 | 202.61 | 220.45 |
| Segment result (₹ cr) | 18.45 | 13.22 | 0.60 |
| Segment assets (₹ cr) | 200.41 | 298.71 | 286.27 |
| Return on segment assets | 9.2% | 4.4% | 0.21% |
Windoors revenue rose ₹17.8 crore over FY25, while its segment profit fell ₹12.6 crore. The division carries ₹86 crore more in assets than in FY24. In FY24 its assets produced ₹18.5 crore, while in FY26 a larger asset base produced ₹60 lakh.
For comparison, FY26 return on segment assets was 19.2% for Coatings, 0.65% for Walls and 0.21% for Windoors.
The exit from the VEKA joint venture
NCL Buildtek held 23.70% of NCL Veka Pvt Ltd, a joint venture with VEKA AG of Germany. The joint venture was the source of the company’s uPVC profiles.
The FY24 Directors’ Report describes a dispute. NCL Buildtek issued an Exit Notice under the shareholders’ agreement. VEKA AG replied with a Call Notice to buy NCL Buildtek’s 62,31,799 shares at ₹138.78 each. The Board thought the price was low and counter-offered to buy out VEKA at 90% of the call price. VEKA contested this on technical grounds, and the matter went to arbitration with the award reserved.
The FY24 report set out both possible outcomes. If VEKA’s claim was upheld, NCL Buildtek would sell its 62,31,799 shares for ₹86.48 crore. If the counter-claim was upheld, it would acquire 1,31,50,001 shares for ₹164.26 crore and take control of the joint venture.
The FY26 report shows which way it went. In FY25 the company sold exactly 62,31,799 shares, with a carrying value of ₹11.31 crore, for ₹86.49 crore. That produced the ₹69.96 crore exceptional gain behind FY25’s headline profit.
There was a consequence a year later. The MD’s letter says VEKA decided to cease supplying the company, so its uPVC profile supply arrangements changed. Alternate sourcing is in place, but orders already in the pipeline will be executed at lower-than-desired margins. The Directors’ Report presents the new arrangement as a positive, saying an alternate extruder diversifies supply risk, reduces concentration and improves negotiating leverage.
Walls and Coatings
Walls
Two years ago Walls looked like a success. The FY24 MD’s letter reported that EBITDA in the Flyash Blocks division rose 64%, from ₹8.7 crore to ₹14.2 crore, helped by better raw-material utilisation and R&D. Segment profit reached ₹7.55 crore that year.
In FY26 the segment earned ₹60 lakh on ₹100.7 crore of revenue, with ₹92.3 crore of assets tied up.
Coatings
Coatings revenue ran ₹101.6 crore, ₹95.6 crore, ₹98.9 crore and ₹109.9 crore from FY23 to FY26. Profit ran ₹13.4 crore, ₹12.4 crore, ₹10.5 crore and ₹11.6 crore. Margins stayed between 10.5% and 13.2% throughout.
Coatings grew revenue in FY26, held its margin, and earns about 19% on its segment assets. It holds ₹60 crore of the company’s ₹451 crore total assets. Capacity is being relocated within Rajasthan from Chopanki to Keshwana to serve the North market, and a fabrication facility has been commissioned there.
Interest costs and cash flow
Total segment profit in FY26 was ₹12.78 crore, against finance cost of ₹11.40 crore. Lenders took roughly 89% of what the three businesses earned.
Debt levels themselves are modest. Net debt is ₹18.53 crore against total equity of ₹227.78 crore, a gearing ratio of 8.13%. A year earlier the company was net cash, at negative ₹17.18 crore, largely because of the VEKA proceeds. Gross borrowings are about ₹98 crore.
Interest cost has come down steadily, from ₹16.6 crore in FY23 to ₹15.4 crore, ₹12.7 crore and then ₹11.4 crore in FY26. That is a fall of 31% over three years, while segment profit fell 63% over the same period.
Cash from operations dropped from ₹33.3 crore in FY25 to ₹8.7 crore in FY26. Over the same year the company spent ₹18.3 crore on capital expenditure and paid ₹4.6 crore in dividends.
Dividend
The dividend for FY26 is ₹3.00 per share: an interim of ₹1.50 paid in March 2026, plus a proposed final of ₹1.50. The source puts the total outgo at ₹4.63 crore, the same per-share total as FY25, against profit after tax of ₹0.85 crore. The payout therefore comes from reserves, not from the year’s earnings.
New products and expansion
- Steel doors: the flagship FY25 initiative. First full-year gross turnover was about ₹11 crore. The line is not yet profitable and is running at about 25% capacity, with utilisation expected to improve in coming months.
- Aluminium: output rose about 40% in FY26, and more capacity is being added.
- Coatings in the North: the Chopanki to Keshwana relocation is nearing completion.
- NCL Paints Private Limited: a wholly owned subsidiary incorporated on 23 May 2026. It has not yet started operations.
What management plans to do
The report is direct about the problem. The fixes listed are enhanced pricing controls, centralised quotation management, stronger cost monitoring, rationalising low-margin business, improving collections, better allocation of capital and management resources, and strengthened leadership in Windoors.
Nearly every item on that list is about repairing margins rather than adding sales.
Things to check when comparing figures
The source flags three places where numbers can mislead:
- FY25 profit after tax. The reported standalone figure is ₹68.46 crore. The underlying figure is roughly ₹8.6 crore, and the gap is the VEKA gain.
- FY24 EPS. The audited P&L shows ₹13.71 excluding exceptional items and ₹13.76 including them. The MD’s letter uses ₹13.76. To compare with FY25’s ₹7.42 and FY26’s ₹0.70, which exclude exceptionals, use ₹13.71.
- FY26 PBT. The MD’s letter says PBT fell “from ₹12.3 crore to ₹2.2 crore”. The audited statements show ₹1.37 crore excluding exceptional items, or ₹2.21 crore including a ₹0.84 crore exceptional gain. The ₹1.37 crore figure is the like-for-like one.
Frequently asked questions
Is NCL Buildtek planning an IPO?
Not at present. The Directors’ Report says the company has deferred its listing plans until a more suitable time.
Why did profit fall if revenue grew?
Mostly because of Windoors. Its revenue rose ₹17.8 crore, but its segment profit fell from ₹13.22 crore to ₹0.60 crore. The company points to uPVC business priced below its cost structure, along with the loss of VEKA as a profile supplier.
Is the balance sheet a concern?
Net debt is ₹18.53 crore against ₹227.78 crore of equity, a gearing ratio of 8.13%. The pressure comes from coverage: finance cost is ₹11.40 crore against segment profit of ₹12.78 crore, and operating cash flow fell to ₹8.7 crore.
Does it pay a dividend?
Yes, ₹3.00 per share for FY26, the same total as FY25.
This article is for information only and is not investment advice. Unlisted share prices are indicative and unlisted investments carry substantial risk, including illiquidity and possible loss of capital.