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1. At a Glance
Hindustan Construction Company was incorporated in 1926 and builds dams, tunnels and power projects. Consolidated revenue for the quarter was ₹993 crore, against ₹1,091 crore a year earlier. Consolidated profit after tax was ₹51.1 crore, against ₹50.7 crore in the same quarter. Revenue fell about 9% while profit edged up 0.7%. The two lines moved in opposite directions and very nearly cancelled each other out, which is a tidy trick for a business that builds dams.
Operating profit for the quarter was ₹105 crore, against ₹179 crore in the three months to June 2025. Management attributes the narrower margin to front-loaded costs on projects still in mobilisation. Roughly ₹8,000 crore of orders were won in the past fifteen months. Management says costs are being incurred on those projects while revenue has not yet arrived. It has reaffirmed a target of 13% to 14% EBITDA margin by year-end. EBITDA is operating profit measured before interest, tax and charges for ageing assets.
The balance sheet has been rearranged more than the profit and loss account. Borrowings fell to ₹1,019 crore in the year to March 2026, from ₹2,223 crore two years earlier. Net worth moved from negative ₹168 crore to positive ₹2,127 crore across the same span. Cash from operations came in at ₹892 crore in the latest year, against ₹134 crore before it. The order backlog stood at ₹12,976 crore as at 30 June 2026.
The market pays ₹38.40 for every ₹1 of yearly profit. Market value is ₹5,192 crore. Promoters hold 16.18% of the company and have pledged 82.4% of that holding.
2. Introduction
HCC was incorporated in 1926 by Walchand Hirachand and is the flagship of the HCC Group. Its business is engineering and construction. It builds dams, tunnels, bridges and hydro power stations. It also builds nuclear and thermal power plants, expressways, roads and marine works. Water supply schemes, irrigation systems and industrial buildings complete the list. The company reports a single operating segment, Engineering and Construction, which is a compact way to describe a hundred years of digging.
The last three years have been dominated by work on the capital structure. Under a resolution plan agreed with lenders, certain debt obligations were transferred to Prolific Resolution Private Limited. Prolific issued non-convertible debentures totalling ₹2,854.40 crore to those lenders. Non-convertible debentures are tradable loans that never turn into shares. In December 2025 the corporate guarantee on that debt was cut to ₹570.88 crore from the whole amount outstanding. That is about 20% of principal, and it reduced exposure by roughly ₹3,364 crore.
A rights issue of up to ₹999.99 crore closed in the same month. It was subscribed twice over, with applications of about ₹2,008 crore. On 23 December 2025 the company allotted 79,99,91,900 shares, taking paid-up capital to ₹261.95 crore. Infomerics, a credit-rating agency, says ₹1,950 crore was raised in total through the rights issue and a QIP over two years. A QIP is a sale of new shares to large institutions only.
On 31 March 2026 HCC signed a Deed of Assignment with its wholly owned subsidiary, HCC Contract Solutions. It transferred the economic and beneficial interest in arbitration awards of about ₹1,979.09 crore. Liabilities of the same amount were transferred with them.
In May 2026 the board approved raising up to ₹800 crore. It also approved increasing authorised share capital to ₹400 crore. The hundredth annual general meeting was called for 18 August 2026 to approve that. Infomerics reaffirmed its IVR BBB- rating on 30 June 2026 and revised the outlook to Positive from Stable.
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3. Business Model: WTF Do They Even Do?
HCC builds the things that are extremely difficult to build, then waits a very long time to be paid for them. That is the model, and it has been the model since 1926.
The credentials are genuinely singular. HCC has constructed 26% of India’s installed hydro power generation capacity and 60% of its nuclear generation capacity. It has built more than 4,036 lane km of expressways and highways. It has completed over 402 km of complex tunnelling and 403 bridges. Most construction companies list their customers. This one lists a meaningful fraction of the national grid.
The order book stood at ₹12,971 crore as at 31 March 2026. Transport work was 67% of it and hydro 18%. Water was 12%, with nuclear and other work making up 3%. A year earlier transport was 53% and hydro 29%. Water was then 14%, with nuclear and other at 4%. The work spans thirteen states plus one international project in Bhutan. Maharashtra accounts for 28% and Bihar for 17%. Uttarakhand is 13%, while Madhya Pradesh and Manipur are 9% each. The top ten projects make up roughly 75% of the unexecuted order book, which Infomerics, a credit-rating agency,
