Hindustan Construction

The company has witnessed significant debt reduction and improvement in its liquidity position, supported by growth in business operations and profitability, satisfactory cashflow from operations and fructification of the fund-raising plans. Over the last two years ending FY26, the company raised ₹1,950 through rights issue and QIP. Proceeds and recovery of certain arbitration claims, monetisation of assets and issuance of bank guarantees were used for debt repayment of HCC/associates/JVs, fundi

HCC’s total order book position remained satisfactory at ₹13,148 crore as on December 31, 2025 (₹11,852 crore as on March 31, 2025) which is ~2.9x the total operating income of FY25, providing medium-term revenue visibility in the company. Of the total order book, 65% of orders pertain to Transportation Segment followed by Hydro (19%), Water works (12%) and Nuclear and Special segment (4%). The order book is geographically well-diversified with orders spread across over eight states.

The company’s total operating income (TOI) moderated in FY25 to ₹4,526 crore (FY24: ₹4,888 crore) primarily due to completion of several old projects, delay in the award of new projects, and slowdown in project execution due to general and state elections in few project sites in FY25. In 9MFY26, TOI moderated by ~15% to ₹2,857 crore (9MFY25: ₹3,362 crore) as several newly 2 CARE Ratings Ltd. Press Release awarded projects were in the early mobilisation stage and their revenue contribution remain

As part of RP implementation, HCC has transferred ₹2,854 crore of debt, and specified awards and claims of ₹6,508 crore, to its SPV, PRPL. HCC furnished corporate guarantee towards the debt transferred to PRPL. Subsequently, on obtaining approval from lenders, HCC’s guaranteed exposure in PRPL has been reduced from 100% of the carved-out debt to 20%. Accordingly, HCC’s exposure to PRPL’s debt is limited to ₹571 crore, materially reducing HCC’s contingent liability risk and strengthening its stan

HCC was founded by Seth Walchand Hirachand in 1926 and is one of the oldest infrastructure development companies in the country. HCC has its forte in undertaking complex engineering projects high rise bridges, hydel power plans, and nuclear power works, among others. The company is spearheaded by Ajit Gulabchand, Chairman, who has extensive experience in the infrastructure industry and demonstrated capabilities in executing relatively complex projects in civil, hydro and transportation

In the last few years, HCC repaid a significant quantum of debt; however, leverage levels remain elevated. Overall gearing stood at 1.23x as on December 31, 2025, and is expected to improve going forward. Post implementation of the Resolution Plan (RP), HCC’s debt has been restructured such that the principal amount, including interest, is repayable annually in March. This structure provides the company adequate time to mobilise funds over the years, mitigating short-term asset–liability mismatc

HCC has been witnessing extended collection days mainly due to high unbilled revenue, disputed debtors under arbitration and retention proceeds. HCC completed some complex marquee projects for which there have been unapproved cost escalations , resulting in built up of debtors. While normal debtors and retention recovery is faster, disputed debtors (cost portion witho ut profit) and unbilled comprise majority debtors , which largely are due to the ongoing arbitration claims with clients. Receiva

HCC operates in the intensely competitive construction industry where projects are awarded basis relevant experience of the bidder, financial capability and most attractive bid price. High competition in the construction industry is due to the presence of large number of small and medium players, resulting in aggressive bidding, which exerts pressure on margins. However, HCC has rich experience in handling complex projects with national importance, long-standing track record in the construction