New Delhi: NBCC (India) Limited, the state-owned construction and project management major, has announced a notable strategic shift in its real estate business. Instead of focusing primarily on outright property sales, the company is now moving toward a leasing-led model aimed at generating stable and recurring income. This transition marks a meaningful change in how NBCC plans to monetise its real estate assets, while also reflecting evolving demand patterns in India’s commercial property market.
During its Q2 FY26 earnings conference call, the management explained that the Imperia project in Bhubaneswar, which was earlier planned for sale, will now be retained and leased out. This decision followed growing interest from information technology and allied service firms that prefer leased office spaces over outright purchases. As a result, the company expects the Bhubaneswar project to generate annual rental income of around ₹20-24 crore. thereby ensuring steady cash flows while retaining long-term ownership of the asset.
Earlier, NBCC had projected that real estate sales from the Imperia project could contribute close to ₹200 crore in revenue. However, as the strategy evolved, the company revised its guidance. It lowered expected real estate sales for FY26 to around ₹65-67 crore. Consequently, the focus has shifted away from one-time monetisation. Instead, NBCC is prioritising long-term and predictable rental income streams.
Moreover, the management highlighted that leasing offers greater financial stability than cyclical property sales. This advantage becomes more relevant during periods of market volatility. In addition, demand for commercial leasing continues to strengthen. Technology-driven businesses, in particular, are showing higher preference for leased office spaces. As demand patterns evolve, the company believes rental-led monetisation can better protect earnings.
At the same time, NBCC is evaluating similar leasing opportunities across other premium real estate assets. The Ghitorni project in Delhi is currently in the final stages of resolution. It may also partly follow a leasing model, depending on market conditions. Although detailed plans are still under review, management has confirmed its intent. Retaining portions of the project for rental income remains a key consideration.
Furthermore, the company already earns recurring rental income from its commercial holdings. These assets are located at the World Trade Centre (WTC), Nauroji Nagar. Office spaces leased to government institutions generate steady returns. Tenants include the Comptroller and Auditor General (CAG) and GST offices. Together, these leases contribute approximately ₹30 crore in annual rental income. This existing revenue stream has strengthened management’s confidence. It also supports the planned expansion of the leasing model across other suitable assets.
Importantly, this strategic pivot comes at a time when the company’s overall financial performance remains strong. In H1 FY26, it reported a 36% year-on-year growth in profit after tax, while maintaining a consolidated order book of over ₹1.28 lakh crore. According to management, recurring rental income will complement the core project management consultancy and redevelopment businesses. Thereby helping smooth earnings volatility over the long term.
Overall, industry observers see this move as part of a broader trend among public sector enterprises toward predictable, annuity-style revenue models. As leasing demand rises across major cities. NBCC appears well-positioned to set an example in PSU-led real estate development by prioritising sustainability and steady income over one-time asset sales.
