HCC
Micro CapHindustan Construction Company Limited
Infra
Hindustan Construction Company (HCC) is an Indian infrastructure major, building since 1926. It has contributed to 60% of India's installed nuclear power capacity and 26% of its hydro power capacity, specializing in complex projects across various infrastructure segments.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -28% YoY · PAT -34% YoY · margin compression · +7% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹992 Cr | -27.8% | +7.2% |
| EBITDA | ₹171 Cr | -40.6% | +155.2% |
| Operating margin | 17.0% | -400 bps | +1000 bps |
| PAT | ₹59 Cr | -34.4% | +637.5% |
| PAT margin | 6.0% | -60 bps | +509 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
HCC reports 142% YoY standalone net profit growth in FY26 to ₹205.8 Cr, driven by operational performance and cost discipline, despite a 38% YoY debt reduction to ₹1,995 Cr. However, Q4 FY26 standalone turnover and EBITDA margins declined significantly YoY.
While FY26 standalone net profit growth and debt reduction are positive, the sharp YoY declines in Q4 FY26 revenue and EBITDA margins, both standalone and consolidated, raise concerns about execution and profitability. The robust order pipeline and management's deleveraging focus are key positives, but current operational performance is weak.
Order Book Position (Business Line Wise)
Latest issuer-disclosed distribution across 4 reported categories.
Hydro Power & PSPs
Market size expected to grow from 57 GW (FY25) to 167 GW (FY35) at 11% CAGR, with tenders for 8 GW already under tendering.
Transportation (Metro & HSR)
Metro market to grow from 1,000 km (FY25) to 3,000 km (FY35) at 12% CAGR; ₹16 L Cr outlay for 7 high-speed rail corridors.
Nuclear Power
India targets 100 GW nuclear power by 2047, with ₹20,000 Cr outlay for SMR R&D and $26 bn private EPC participation.
Buildings & Industrial
India aims for 300 MT crude steel capacity by 2030, driving ~₹3 L Cr+ capex investment by 2030 across metals & minerals.
Indore Metro TBMs
ProgressingFactory Acceptance Tests for two TBMs completed. Piling and station excavation works are progressing.
Vishnugad Pipalkoti HEP
Progressing9.3 km of the planned 12.1 km Head Race Tunnel excavated using TBM; significant dam concreting achieved.
Government Infrastructure Vision
India's Infrastructure Vision for 2047 includes significant targets for highways, expressways, high-speed rail, and power capacity.
Hydro Sector Revival
Slow-moving sector now seeing renewed traction with projects in J&K and Arunachal, and faster approvals for off-stream PSPs.
Nuclear Sector Opening
SHANTI mission allows 49% FDI, and government plans to invite $26 bn private EPC participation in upcoming projects.
Revenue Decline
Standalone turnover declined by 25.7% YoY in Q4 FY26 and 18% YoY in FY26.
Margin Contraction
Standalone EBITDA margin declined from 31.0% in Q4 FY25 to 18.2% in Q4 FY26, and from 19.4% in FY25 to 16.1% in FY26.
Execution Delays
Operations updates show ongoing work but no explicit timelines for project completion or revenue recognition, which could impact future turnover.
Competitive Bidding
Robust bid pipeline (~₹25,760 Cr under evaluation, ~₹43,800 Cr planned for Q1 FY27) implies intense competition for new orders.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing annual performance and the impact of debt reduction on full-year profit. QoQ comparison is important for understanding sequential momentum in revenue and margins, especially given the significant Q4 YoY declines.
Order Inflow (FY26)
PositiveNew Order booking (HCC Share) in FY26 was ₹5,654 Cr (incl ~₹1,100 Cr LOA received in Apr’26).
Order Backlog
ModerateOrder Backlog is ₹12,971 Cr (Excluding ~₹1,100 Cr LOA received in Apr’26 and L1 of 840 Cr).
Standalone Turnover (FY26)
NegativeStandalone Turnover was ₹3,937.3 Cr in FY26 vs ₹4,801.1 Cr in FY25.
Standalone EBITDA Margin (FY26)
NegativeStandalone EBITDA margins were 16.1% in FY26 vs 19.4% in FY25.
Deleveraging Focus
Management states focus on complete deleveraging continues with further debt prepayments during FY27.
FY27 Order Booking Target
Management targets ~₹15,000 Cr in order booking for FY27.
Targeting Reputed Clients
For hydro PSPs, HCC plans to target reputed clients with project readiness.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Order Inflow | ₹5,654 Cr (FY26) | Achievement of FY27 target of ~₹15,000 Cr and conversion of L1 bids/pipeline into firm orders. |
| Debt Reduction | ₹1,995 Cr (38% YoY reduction) | Further debt prepayments in FY27 and the full reflection of ₹112 Cr annual interest reduction. |
| Revenue Execution | Q4 FY26 standalone turnover ₹988.7 Cr (-25.7% YoY) | Reversal of revenue decline and improved project execution leading to higher turnover. |
| EBITDA Margins | Q4 FY26 standalone EBITDA margin 18.2% (-12.8% YoY) | Stabilization and improvement in operational margins. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
59NeutralSMA20 +17.6% / mo
Technical chart
HCCdaily · 1Y-7.9%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 58. Wait for confirmation.
- SMA20 rising (~4.4% over last month) — short-term momentum positive.
- RSI(14) at 58 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 15% off 52W high · 72% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 8.8%.
- Cash flow contributes 10/10 to the score.
- Growth contributes 14/25 to the score.
Main drags
- Altman Z is 1.6, in distress territory.
- Promoter pledge is 79.7%.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 8th percentile of the scored universe and 10th percentile within Infra. Main check: results consistency is weak at 5/100.
Mixed Trust Lite: FCF yield is 9.8%. Key concern: Promoters have pledged 79.7% of holding.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Infra: 10th pctile, median 65 · Micro: 5th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸FCF yield is 9.8%.
- ▸10 years of positive FCF.
- ▸ROCE is 22.8%.
Trust risks
- ▸Promoters have pledged 79.7% of holding.
- ▸Altman Z is 1.59.
- ▸5 recent quarters had PAT decline worse than 25% YoY.
- ▸Promoter holding is only 16.7%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 43.50
- P/B
- 2.81
- EV/EBITDA
- 11.83
- Market Cap
- 5983.00Cr
Profitability
- ROE
- 9.06%
- ROCE
- 22.80%
- ROA
- 1.95%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- -14.00%
- EPS 5Y
- 19.00%
- Revenue 3Y
- -22.00%
- EPS 3Y
- 32.00%
Balance Sheet
- Debt/Equity
- 0.48
- Interest Coverage
- 1.20×
- Altman Z
- 1.65
- Book Value
- 8.12
Cash Flow
- FCF Yield
- 8.83%
- FCF Positive Y
- 10/5
- OCF
- 892.00 Cr
- EPS TTM
- 0.63
Shareholding
- Promoter Hold
- 16.72%
- Promoter Pledge
- 79.70%
- Momentum 52W
- 51%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Infra — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.