NECC Shares Surge 18% As India Ratings Affirms Credit Rating; Outlook Remains Steady

North Eastern Carrying Corporation Ltd (NECC) observed positive market sentiment on Thursday. The company shares increased by 17.99%, reaching an intraday high of Rs 24.01 from the previous close of Rs 20.35. Ultimately, the stock ended the day 6.54% higher on the NSE at Rs 21.68 with a market cap of Rs 216.80 Cr.

This rally came after North Eastern Carrying Corporation Limited (NECC) announced that India Ratings and Research (Ind-Ra) has affirmed and assigned credit ratings for its bank loan facilities aggregating to Rs 1,000 million. This includes an affirmation on existing bank loan facilities worth Rs 840 million and a fresh assignment of Rs 160 million.
On 18th October, the agency reaffirmed its ratings of IND A3+ for short-term facilities and IND BBB/Stable for long-term loans.

The rating is based on NECC's proven track record of more than 50 years in operation, its experienced promoters, and its varied and well-known clientele, which includes organizations like TATA Steel, Hindalco, GAIL, and APL Apollo Tubes.

Ind-Ra expects NECC's revenue and profitability to remain stable in FY26, with gradual improvement over the medium term.

In FY25, the company's revenue was Rs 3,287.25 million, and its EBITDA margin was 6.86% with an EBITDA of Rs 225 million. The working capital cycle is still stretched at 132 days because of extended receivables, even if NECC's credit metrics—such as its interest coverage ratio of 2.95x-remain steady. Ind-Ra said that consistent performance will be supported by NECC's asset-light approach, modest leverage (3.99x), and emphasis on operational efficiency.

However, the main obstacles are low margins, fierce competition in the fragmented logistics industry, and liquidity strain brought on by excessive working capital use. Because of NECC's well-established market position, skilled management, and continuous business diversification efforts, the outlook remains steady, as per Ind-Ra.

Established in 1968, North Eastern Carrying Corporation Limited (NECC) is a logistics and transportation firm with headquarters in Delhi, India, that offers a variety of freight and supply chain services in Bangladesh, Nepal, Bhutan, and India. It is a logistics company with ISO certification and IBA approval. In 2012, the firm went public on the Bombay Stock Exchange (BSE), and in 2016, it became public on the National Stock Exchange (NSE).