Hindustan Construction Company (500185) Q4 25/26 earnings summary

Executive summary

• Standalone net profit surged 142% year-over-year to ₹205.8 crore in FY26, driven by operational improvements and cost discipline.

• Debt reduced by 38% YoY to ₹1,995 crore, aided by a successful ₹1,000 crore rights issue and strong cash flows, with further deleveraging targeted.

• Order intake for FY26 reached ₹5,654 crore, with a robust pipeline and bids under evaluation totaling up to ₹43,800 crore for Q1 and Q2 FY27.

• Order book stood at ₹12,971 crore as of March 31, 2026, with major infrastructure projects advancing, including Mumbai Metro Line 3, Indore Metro, Patna Metro, and Tehri Pump Storage.

• The company celebrated its centenary year, marking a legacy of major infrastructure contributions.

Financial highlights

• Standalone turnover was ₹988.7 crore in Q4 FY26 and ₹3,937.3 crore for the full year, down from ₹4,801.1 crore in FY25; consolidated revenue for FY26 was ₹3,969.6 crore.

• Standalone EBITDA margin was 18.2% in Q4 FY26 and 16.1% for FY26, down from 31% and 19.4% in the prior year; consolidated EBITDA margin for Q4 FY26 was 17.21%.

• Q4 FY26 standalone profit after tax was ₹44.6 crore, down 80.5% YoY; consolidated profit after tax for Q4 FY26 was ₹58.9 crore, down 34.6% YoY.

• Net cash from operating activities rose sharply to ₹700.7 crore in FY26, supported by recovery of receivables.

• Rights issue proceeds were primarily used for debt repayment, working capital, and investments.

Outlook and guidance

• Targeting ₹15,000 crore in order intake for FY27, with an expected order backlog of ₹24,000–27,000 crore by year-end.

• Strong bid pipeline with submissions planned for Q1 FY27 totaling ~₹43,800 crore.

• Anticipates 20% turnover growth in FY27, with continued focus on operational efficiency and cost control.

• Long-term CAGR for order backlog and revenue projected at 20–25%.

• Plans to become debt-free by FY28.