Hindustan Construction Company (500185) Q2 25/26 earnings summary

Executive summary

• Standalone Q2 FY26 turnover was ₹957.8 crore and net profit ₹36.7 crore, both down year-over-year, with consolidated revenue at ₹960.7 crore and profit at ₹47.8 crore, reflecting declines due to project completions and the divestment of Steiner AG.

• The order book stood at ₹13,152 crore as of September 30, 2025, diversified across transport, hydro, nuclear, buildings, and water, with Maharashtra as the top geography.

• Major operational milestones included the inauguration of Mumbai Metro Line 3, progress on Tehri Pumped Storage, Vishnugad Pipalkoti, Indore Metro, and Bhivpuri projects.

• Three major orders totaling ₹2,770 crore were secured, including Patna Metro and Hindalco Aluminium smelter expansion, with L1 status on a project worth ₹840 crore.

• The company is actively deleveraging, with ₹339 crore prepaid to lenders YTD and a planned rights issue of ₹1,000–1,100 crore to further reduce debt.

Financial highlights

• Standalone total income for Q2 FY26 was ₹957.8 crore; EBITDA margin was 16.1%; PAT was ₹36.7 crore.

• Consolidated income was ₹960.7 crore; EBITDA margin was 15.38%; PAT was ₹47.8 crore.

• Finance costs have reduced year-over-year due to ongoing debt repayments.

• Total comprehensive income (consolidated) fell 38.8% year-over-year to ₹48.6 crore.

Outlook and guidance

• Robust bid pipeline of ₹57,000 crore, with ₹29,581 crore under evaluation and order intake targeted north of ₹10,000 crore for FY26.

• Rights issue of ₹1,000–1,100 crore targeted for Q3 FY26, with additional debt repayment of ₹450 crore expected.

• Order book could reach ₹30,000 crore by FY27, with ambitions to double turnover in three years and maintain mid-teen EBITDA margins.