HEC Infra Projects FY26: Revenue Crosses ₹176 Cr as a ₹152-Cr Contractor Out-Executes Its Own Balance Sheet

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1. At a Glance

Here is a company you have almost certainly never heard of that just grew revenue 57% in a single year. HEC Infra Projects — a Gujarat electrification contractor with a market capitalisation of ₹152 crore — closed FY26 with sales of ₹176 crore against ₹112 crore the year before, and net profit of ₹12.6 crore against ₹9.24 crore. On paper, that is a genuinely fast-growing small business.

The tension sits one layer down. The same year the company nearly doubled its top line, its inventory ballooned from ₹9.75 crore to ₹41.82 crore, and operating cash flow limped in at ₹3.04 crore — a recovery from the prior year’s ₹26 crore outflow, but thin next to ₹12.6 crore of reported profit. Borrowings climbed to ₹44.38 crore.

So the record shows a contractor winning orders faster than it can convert them to cash, funding the gap with working capital, and reporting rising profit throughout. Whether the cash catches up to the profit is the question the balance sheet keeps asking. A business that grows on receivables and inventory is really borrowing tomorrow’s revenue to book today’s — the trick is whether tomorrow pays.

The order book, the margin, and the cash cycle all point in slightly different directions. Read on.

2. Introduction

HEC Infra Projects was incorporated in 2005, tracing its origins to a 1986 partnership firm called Harsh Electric Corporation, and is headquartered in Ahmedabad. It listed on NSE Emerge in 2016 and migrated to the main board in December 2021. The company is a registered ‘Class A’ EPC contractor with the Roads and Buildings Department of the Government of Gujarat and holds a Class-1 registration with the Central Public Works Department.

Its work sits in high-voltage power infrastructure: overhead and underground transmission lines, substations up to 220 KV, water pumping and treatment plants, solar park electrification, lighting systems, and industrial electrification. The presentation counts over 300 projects delivered across 200-plus clients, from GETCO and HVPNL to Tata Power Solar and MG Motors.

FY26 was, by revenue, the biggest year in the company’s recorded history — sales of ₹176 crore against a ten-year average that spent most of the last decade under ₹100 crore. The audited standalone results for the year ended 31 March 2026 were approved by the board on 28 May 2026, carrying an unmodified audit opinion from KDN & Associates LLP.

The recent order flow has been steady. Since March 2026 the company has announced a string of work orders — a ₹48 crore package from BPCL, ₹44.87 crore from POWERGRID’s Bikaner IV transmission project, and a ₹34.82 crore electrical package from Stellar Manufacturers, among others. That is the raw material of the year. What follows is what the numbers did with it.

3. Business Model: WTF Do They Even Do?

Strip away the acronyms and HEC is a firm that gets paid to wire up India’s power and water grid, end to end. A government body or a private industrial client floats a tender; HEC bids; if it wins, it designs, procures the equipment, installs it, tests it, and hands over a working substation, transmission line, or pumping station. This is called SITC — supply, installation, testing and commissioning — and turnkey EPC is the polite phrase for “we do the whole thing and you pay us in instalments, slowly.”

The revenue mix, per the presentation, leans hardest on transmission lines (66% of the order book), with substations, water management, industrial work and lighting filling out the rest. Voltage capability tops out at 220 KV — and management has been candid that it deliberately stays there. Moving to 400 KV work would mean transformer lead times of 3.5 years and execution cycles stretching to four, which for a company this size means locking up bank guarantees for a small eternity. So it stays in the 9-month-to-2-year lane by choice.

The model’s charm and its curse are the same thing: its clients. A large share of the work comes from government departments and PSUs — GETCO, HVPNL, Ahmedabad Municipal Corporation, POWERGRID. Government contracts lend credibility and a fat order book. They also pay when they feel like it, which is the recurring theme of this company’s entire balance sheet. Management has said it stopped bidding for GETCO substation work specifically because recovering the final retention money was becoming, in its words, more and more challenging.

A contractor is only as strong as its slowest-paying customer’s accounts department. HEC’s are governments. Hold that thought.

4. Financials Overview

Figures are standalone, in ₹ crore. The company files standalone results only — it has no subsidiary, associate or joint venture on its books.