Shares of NCC Limited fell sharply on Thursday, February 19, 2026. The stock slipped nearly 10% during the day and touched around ₹135 on the NSE, its lowest level in the past one year. The sudden fall came after the National Highways Authority of India (NHAI) imposed a two-year ban on the company and one of its subsidiaries from participating in its tenders.
What Has Happened?
According to the company’s exchange filing, NHAI has debarred NCC and its step-down subsidiary, O B Infrastructure Limited, from taking part in any new tenders issued by the authority. The ban will remain in place for two years starting from February 17, 2026. In simple terms, this means NCC will not be able to bid for new highway projects from NHAI during this period.
Why Did NHAI Take This Step?
- The issue is connected to a past highway project in Uttar Pradesh that was executed under a Build-Operate-Transfer (BOT) model by the subsidiary.
- There were disputes related to delays and certain contractual matters. The matter went into arbitration, and the dispute is currently under legal review.
- After this, NHAI issued the debarment order.
- NCC has said it will take legal steps against the decision.
How Did the Market React?
Investors reacted quickly to the news. The stock came under heavy selling pressure and hit a fresh 52-week low. Since NHAI is one of the largest awarding authorities for road infrastructure projects in India, the development has raised concerns about future project opportunities from this segment.
However, the company has clarified that:
- Ongoing projects will continue as usual.
- Its existing order book remains unaffected for now.
More clarity is expected in the coming weeks as the company responds legally and provides further updates.
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