HCC Quarterly Results Q1 FY26

Hindustan Construction Company (HCC) has released its Q1 FY26 financial results, showing improvements in several key areas, even as challenges remain in others. The numbers reflect operational discipline, a strong order book, and strategic initiatives that may influence its trajectory in coming quarters.

• Turnover & Revenue: On a standalone basis, HCC reported a turnover of ₹1,069 crore in Q1 FY26, down about 15.5% year-on-year from ₹1,265.7 crore in Q1 FY25. HCC+1
• Net Profit (PAT): The standalone profit after tax was ₹38.6 crore, compared to ₹22.8 crore in Q1 FY25, marking a growth of ~69.6%. HCC
• EBITDA & Margins: The EBITDA margin (excluding other income) improved to 14.9% in Q1 FY26 from about 12.6% in Q1 FY25. HCC+2HCC+2
• Order Book & Pipeline: The company continues to hold a robust order backlog of ~₹11,188 crore. It is lowest bidder (L1) for orders worth ~₹6,079 crore, and it has a bid pipeline of approximately ₹40,000 crore. HCC+2ICICI Direct+2

• Project Progress: Several projects are progressing steadily:
  • The Anji Khad Cable-Stayed Bridge was inaugurated in early June 2025. HCC+1
  • In the Tehri Pumped Storage Plant, Units 5 and 6 (each 250 MW) have reached Commercial Operation Dates (CODs). HCC+1
  • For the Vishnugad-Pipalkoti Hydroelectric Project, tunnel boring machine (TBM) work has achieved ~6.5 km out of 12.1 km. HCC+1
  • Projects like the Agardanda Cable-Stayed Bridge, Bhivpuri PSP, and Indore Metro are in mobilization and execution phases. HCC+1
• Finance & Cash Flows: The company received ₹250 crore through a settlement under the Vivad Se Vishwas scheme, which provides some liquidity. HCC 

Though revenue has declined on some metrics, HCC appears focussed on strengthening its margins, order inflows, and project execution. Key strategic themes going forward include:

• Cost control & Margin Enhancement: Improved margin metrics suggest more disciplined cost management. Maintaining or improving these would be crucial.
• Order Conversion: Being L1 (lowest bidder) on several large projects and a strong bid pipeline point to future growth, provided many bids convert into confirmed orders (LOAs).
• Operational Execution: Efficiency in large projects, especially in challenging geographies like hydro and tunnel work, will significantly influence outcomes.
• Cash & Financial Discipline: Settlements, receivables, and possibly disposing or monetizing non-core assets may help. Also, managing debt and finance costs will be important.

On the back of an encouraging first quarter, Hindustan Construction Company (HCC) enters FY26 with renewed momentum, underpinned by improved profitability, robust execution, and prudent cost management. The company is well-positioned to drive double-digit growth in FY26, aiming for a full-year revenue milestone of ~₹2,000+ crore, with consistent expansion in margins.

Key Drivers of Growth

1. Operational Recovery & Profitability Rebound
   Q1 reported a net profit of ~₹50.73 crore versus a loss in the same period last year. Bajaj Broking
   Engineering & Construction remains the core revenue engine (~₹1,068.99 crore in Q1), while Infrastructure segment has moved into profit, reflecting improvement in project execution and cost control. Bajaj Broking
2. Revenue Growth & Order Book Execution
   While total income declined YoY (Q1 FY26 revenue ~₹1,118.66 crore vs ~₹1,835.72 crore in Q1 FY25), the shift in focus to executing higher-margin, high-value infrastructure/E&C projects is evident. Bajaj Broking
   Management is likely prioritising completion of existing large contracts, better cash flows, and reducing dependence on low margin business segments.
3. Margin Expansion Focus
   Margins are showing signs of improvement: Q1 EBITDA turned positive (₹73.32 crore) vs very modest / negative in the comparable period. Bajaj Broking
   Key levers: enhanced cost discipline, tighter control over overheads, better procurement, efficiencies in execution, and shift toward more profitable project segments (infra / large civil works).
4. Risk Mitigation & Resource Allocation
   • Cost inflation, input price volatility remain concerns; hedging / contracting with fixed costs where possible will help.
   • Working capital and receivables management will be critical, given infrastructure projects’ long cycles.
   • Selective bidding to avoid margin erosion; focus on projects / geographies with favourable regulatory & contract risk profiles.

HCC’s Q1 FY26 results show that while topline has taken pressures in some dimensions, the company is making gains in profitability, margin efficiency, and in building up its future order pipeline. For those observing infrastructure sector trends, HCC’s progress in project execution and its order book strength are worth watching. As with any infrastructure firm, execution risks, delays, and capital intensity remain central themes to monitor.