Hind.Construct. Q1 FY27 Results (NSE: HCC)
Signal: Revenue declined
The read
Consolidated PAT flat despite 9% revenue decline, but supported by ₹62 Cr other income (84% of PBT) — core earnings quality weak. Standalone gross margin compressed 390bps. Order book steady at ~₹12,976 Cr and L1 bids of ₹1,671 Cr offer future visibility.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹993.42 Cr | -9.0% | N/A |
| EBIT | ₹160.76 Cr | N/A | |
| Net profit | ₹51.08 Cr | 0.8% | |
| EPS | ₹0.19 | N/A | |
| EBIT margin | 16.8% |
P&L walk
Consolidated revenue fell 9% YoY to ₹993 Cr but PAT flat at ₹51 Cr as EBITDA margin held 16.8%; profit reliant on ₹62 Cr other income (84% of PBT).
Key positives
- Order book flat at ₹12,976 Cr; L1 bids worth ₹1,671 Cr provide near-term revenue pipeline.
- Consolidated net profit stable at ₹51 Cr YoY despite revenue decline.
- Debt/equity low at 0.27x; net worth ₹3,119 Cr.
Key concerns
- Consolidated revenue declined 9% YoY; standalone gross margin compressed 390bps to 29.3%.
- Standalone operating margin dropped 422bps YoY to 10.65%.
- Other income forms 84% of consolidated PBT — earnings quality concern.
- Auditor qualified on investment in subsidiary (HICL) and deferred tax asset recoverability.
- Standalone EPS fell 26.3% vs 3.9% PAT decline — potential EPS computation anomaly.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.