HEC Infra Projects Ltd is buzzing brighter than a 220 KV switchyard under load. With a market cap of ₹138 crore, a P/E of 13x, and an ROE of 21%, this Gujarat-based EPC powerhouse has just pulled off a shocking 81% YoY profit jump. The latest quarter (Q2 FY26) lit up with revenue of ₹40.5 crore and net profit of ₹2.23 crore, while the company’s order book hit a thundering ₹326 crore—enough to keep the transformers humming for the next few years.
Despite being small in size, HEC runs a heavy-duty current. The return over 3 years stands at +52%, but the past 6 months saw a -21% correction, a bit like a fuse tripping after overexcitement. It’s the kind of stock that doesn’t blink when faced with municipal tenders or power transmission contracts—it just quietly collects them.
From street lighting projects in Ahmedabad to 220 KV transformer bay extensions, and from battery energy storage systems (BESS) to solar PV installations, HEC is the quintessential “electrification everything” play. Sure, they don’t pay dividends (the CFO probably keeps the current flowing internally), but their sales growth of 71% and profit growth of 74% say this transformer has serious juice left.
So, what happens when a smallcap EPC firm keeps wiring India’s future with Gujarati precision? Let’s plug in and find out.
2. Introduction
If you ever wondered who keeps Gujarat glowing while politicians keep promising “24×7 power,” meet HEC Infra Projects Ltd—the Class-A contractor that actually makes those wires, substations, and lighting poles stand straight. Founded in 2005, this company isn’t just about electric cables—it’s about power, persistence, and a slightly shocking growth curve.
HEC is the perfect underdog from Ahmedabad’s power alley. It doesn’t build dams or highways like L&T, but it does build the electrical arteries that make those projects functional. It’s the silent operator behind solar parks, underground cable networks, street lighting, and switchyards. While others attend renewable energy summits and pose for photos, HEC just executes projects—on time, on budget, and apparently on caffeine.
Their financial performance is now starting to match their work ethic. After years of low-voltage performance (2018–2021 was dim), things started sparking post-2022. Profit CAGR over 5 years: a blazing 76.4%. Debt? Manageable at ₹41.8 crore. Promoter holding? A solid 74.9%, unpledged.
And here’s the kicker—the company has managed to cut working capital requirements from 181 days to just 44.4 days. That’s the EPC equivalent of turning a power station from diesel to solar—faster, leaner, smarter.
Could this be the next mini L&T for Gujarat’s power ecosystem? Let’s dig deeper before we blow a fuse with excitement.
3. Business Model – WTF Do They Even Do?
At its core, HEC Infra Projects Ltd is an EPC contractor—Engineering, Procurement, and Construction. But let’s drop the jargon. Basically, they’re the people who make sure your lights turn on, your water pumps run, and your factories don’t short-circuit.
They operate in multiple areas:
Substations & Transmission Lines: They build, install, and commission substations up to 220 KV and overhead transmission lines up to 220 KV. (For context, that’s enough to fry a medium-sized IT park if you’re not careful.)
Cable Laying & Underground Works: While you’re scrolling memes, their crew is busy laying underground 66 KV cables so you can watch Netflix uninterrupted.
Solar EPC: HEC designs and commissions solar PV plants, mini/micro-grids, and even battery energy storage systems (BESS).
Industrial & Commercial Electrification: Think Reliance plants, Adani ports, or Mother Dairy units—they’ve been there, wired that.
Lighting & Water Pumping: From street lights to pumping stations, they turn civic infrastructure into something your mayor can brag about.
Their clients include Adani Ports, Hindalco, Mother Dairy, Reliance Industries, and Essar Oil & Gas—basically the who’s who of Indian industry who need reliable power setups.
Revenue mix (FY22):
Domestic sale of goods – 61%
Domestic sale of services – 39%
In short, HEC sells cables, builds substations, and electrifies just about everything except your love life.
4. Financials Overview – The Power Table
Metric
Latest Qtr (Sep 2025)
Same Qtr Last Year (Sep 2024)
Previous Qtr (Jun 2025)
YoY %
QoQ %
Revenue (₹ Cr)
40.50
20.04
27.91
102.1%
45.1%
EBITDA (₹ Cr)
3.86
1.18
2.60
+227%
+48%
PAT (₹ Cr)
2.23
1.23
1.33
+81.3%
+67.6%
EPS (₹)
2.06
1.21
1.23
+70.2%
+67.4%
Commentary: When your revenue doubles and profit grows faster than a Tesla stock meme, you know the circuits are humming. The EBITDA margin of around 9.45% might look modest, but for an EPC firm in infrastructure, that’s like running 220 volts on a 110-volt plug—it’s strong.
At this pace, annualized EPS = ₹2.06 × 4 = ₹8.24, putting the P/E near 15.5x on forward earnings.
If execution continues like this, the current ₹128 price tag could look like an unbilled electricity bill—small now, shocking later.
5. Valuation Discussion – Fair Value Range
Let’s keep the current flowing.
P/E Method: Industry average P/E = 17.8 HEC’s EPS (TTM) = ₹9.93 Fair value range = ₹9.93 × (13–18) = ₹129 to ₹179
EV/EBITDA Method: EV = ₹172 crore EBITDA (TTM) = ₹18 crore EV/EBITDA = 9.5x (vs industry average 12x–15x) Fair value range = ₹160–₹200
DCF Approximation (simplified): Assuming 20% profit growth for 5 years and terminal growth of 4%, discounting at 12%, intrinsic range = ₹140–₹180
Fair Value Range (Educational Purpose Only): ₹130 – ₹190 Disclaimer:
