Hindustan Construction Company (500185) Q4 24/25 earnings summary

Executive summary

• Order backlog at ₹11,852 crore as of March 31, 2025, with additional L1 positions worth ₹3,513 crore expected to materialize in coming quarters.

• Secured new contracts worth ₹5,700 crore (HCC share ₹3,471 crore); lowest bidder in projects worth ₹4,000 crore (HCC share ₹3,500 crore).

• Major project completions include Rajasthan Atomic Power Project, Integrated Nuclear Recycle Plant, Anji Khad Cable Stay Bridge, T49A Tunnel, Delhi Metro DC06, and significant progress on Mumbai Metro, Coastal Road, and BKC Bullet Train Station.

• Received investment grade rating (CARE BBB-), completed ₹350 crore rights issue (2.5x oversubscribed) and ₹600 crore QIP, and repaid ₹534 crore lender dues plus ₹134 crore prepayment.

• Divestment of Swiss subsidiary Steiner AG completed, with proceeds expected over 24-36 months.

Financial highlights

• Standalone turnover for FY25 at ₹4,801 crore (down 4.8% YoY); Q4 FY25 turnover at ₹1,330 crore (down 6.9% YoY).

• Standalone PAT for FY25 at ₹84.9 crore (down 52.4% YoY); Q4 FY25 PAT at ₹228.4 crore (up 489.2% YoY).

• Consolidated turnover for FY25 at ₹5,603 crore (down 20% YoY); Q4 FY25 at ₹1,374 crore (down 22.5% YoY).

• Consolidated PAT for FY25 at ₹112.6 crore (down 78.7% YoY); Q4 FY25 at ₹90.1 crore (down 63.4% YoY).

• EBITDA margin for FY25 at 19.4% (vs 13.6% in FY24); Q4 FY25 margin at 31% (vs 15% in Q4 FY24), driven by settlements.

Outlook and guidance

• No growth expected in FY26; focus on maintaining current turnover levels.

• Targeting order book of ₹20,000 crore as a near-term goal.

• Long-term visibility for 30-40% CAGR in execution from FY27-28 onwards as order pipeline materializes.

• FY26 bid pipeline identified at ₹54,000 crore, with 75% in urban infrastructure and hydropower; ₹30,950 crore in bids under evaluation.

• Advanced stage of settlement of large claims expected to further improve liquidity and margins; ₹250 crore expected in Q1 FY26 from completed settlement under VSV2.