Hindustan Construction Company (500185) Q1 26/27 earnings summary

Executive summary

• Standalone turnover for Q1 FY27 was ₹981.7 crore with net profit of ₹37.1 crore; consolidated PAT improved to ₹51.1 crore on revenue of ₹993.4 crore.

• EBITDA margin for Q1 FY27 was 10.7%, down from 14.9% in Q1 FY26, attributed to high mobilization expenses on new projects.

• Order book stands at ₹12,976 crore, with new orders of ₹125 crore and L1 status for projects worth ₹2,124 crore (HCC share: ₹1,671 crore); robust bid pipeline exceeding ₹85,907 crore.

• Major project milestones achieved across metro, hydro, and industrial segments, including Indore Metro, Patna Metro, Agardanda, Bhivpuri, Vishnugad Pipalkoti, and Tapovan Vishnugad.

• Management remains confident in achieving the ₹15,000 crore new order intake target for FY27, with several large bids under evaluation.

Financial highlights

• Standalone revenue: ₹981.7 crore; consolidated revenue: ₹993.4 crore for Q1 FY27, both down year-over-year.

• Standalone net profit: ₹37.1 crore; consolidated net profit: ₹51.1 crore for Q1 FY27.

• EBITDA margin declined to 10.7% from 14.9% year-over-year due to mobilization costs for new projects.

• Finance costs reduced year-over-year; Q1 interest cost was ₹87 crore.

• Standalone EPS: ₹0.14; consolidated EPS: ₹0.19.

Outlook and guidance

• EBITDA margin expected to recover to 13%-14% by year-end as new projects ramp up.

• Revenue for FY27 expected to be flat or slightly higher than FY26, with potential for 15%-20% upside depending on project mobilization.

• FY28 revenue growth targeted at 15%-25% as project execution accelerates.

• Management maintains guidance of ₹15,000 crore in new order intake for FY27.

• Management confident of recovery of receivables under arbitration/litigation and utilization of deferred tax assets based on future taxable profits.