ebitda
13–14 pct
FY 2026
official guidance
HINDUSTAN CONSTRUCTION COMPANY LIMITED
Last · NSE₹20.04-0.03 (-0.15%)live · yahoo · 5h ago
Market cap₹52.5B2.62B sh
P/E · TTM27.8fwd 29.5 · eps 0.72
Beta0.70vs S&P 500
Div yield0.00%annual · TTM
52w range
₹13.65₹29.50
Volume3.0Msession
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Backlog and deleveraging could improve the story, but near-term cash needs and unbooked L1 orders warrant waiting.
Hold: Q1 standalone turnover fell to ₹1,069 crore from ₹1,265 crore despite PAT rising to ₹38 crore and EBITDA margin reaching 14.9%.
The ₹11,188 crore backlog, ₹6,000 crore of L1 positions and potential FY27 growth are credible upside, but ₹3,200 crore of debt, a roughly ₹900 crore March 2026 repayment and a planned ₹700-900 crore rights issue leave execution, refinancing and dilution risks too high for a clean buy.
Themes
- Deleveraging
- Rights Issue
- Order Book
- L1 Conversion
- Infrastructure Execution
- Arbitration Awards
Near term
The ₹6,000 crore L1 positions are not yet booked; management expects largely signing within one to 45 days, but also described bureaucratic and financing-agency delays.
Management expects FY26 turnover to remain close to the prior year, while monsoon disruption can reduce surface-project turnover to about 50% during the period.
A rights issue of roughly ₹700-900 crore is being considered, with timing potentially within the next three months; promoter underwriting is expected but dilution and pricing remain unresolved.
Longer term
The ₹11,188 crore backlog is at its lowest point in years, and management says meaningful execution growth should begin in FY27 as current projects mature.
Management targets 20-25% growth from FY27 onward, but that depends on converting a ₹40,000 crore bid pipeline and scaling project execution without a major working-capital strain.
Debt reduction is central to the thesis: management targets below ₹2,000 crore within 15-18 months from roughly ₹3,200 crore, which could lower interest expense but relies on awards, cash flow and capital raising.
Red flags
March 2026 is the company's largest repayment, at about ₹900 crore, and management needs a combination of bank-guarantee transactions, operating cash and capital raising to fund it.
The company has ₹5,500 crore of bank-guarantee exposure; if an award is not upheld, management acknowledged the guarantee could be encashed and become HCC debt.
The growth case relies heavily on management targets: no orders were booked in the quarter, and even the ₹40,000 crore pipeline is expected to convert at only a 25-30% hit rate.
Management did not provide a firm rights-issue size or timing, while the proposed equity raise competes with debt repayment and cash needed to support new orders.
Forward outlook
revenue growth
20–25 pct
FY 2027
management target
ebitda
13–15 pct
FY 2027
management framework
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Earnings transcripts
Documents
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