Hind.Construct. Q2 FY27 Results (NSE: HCC)
Signal: Revenue declined
The read
The trajectory remains execution-constrained: consolidated revenue fell 6.7% YoY to ₹896.8 crore and PAT fell 52.7% to ₹22.6 crore, while standalone EBITDA margin compressed 390bps to 12.2%; the ₹12,901 crore work-on-hand and ₹524 crore new order support backlog visibility, but qualified accounts and negative operating cash flow keep earnings quality weak.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹896.8 Cr | -6.7% | -9.7% |
| Net profit | ₹22.6 Cr | -52.7% | |
| EBIT margin | N/A |
P&L walk
Consolidated revenue declined to ₹896.8 crore, down 6.7% YoY and 9.7% sequentially, while PAT fell 52.7% YoY to ₹22.6 crore from ₹47.8 crore; the filing text does not disclose consolidated EBITDA, EBIT, EPS or detailed cost lines.
Segments
The standalone E&C business generated ₹895.8 crore revenue and ₹36.8 crore PAT, while the consolidated group generated ₹896.8 crore revenue but only ₹22.6 crore PAT; subsidiaries and joint operations therefore dragged group profit by approximately ₹14.2 crore.
Key positives
- Order visibility remains material at ₹12,901 crore of work on hand, only 0.5% below March 2026, against Q2FY27 standalone revenue of ₹895.82 crore.
- HCC secured a ₹524 crore order and was lowest bidder for ₹2,010 crore of projects, including an HCC share of ₹1,557 crore.
- Standalone PAT held at ₹36.78 crore, up 0.3% YoY, despite revenue declining 6.5% YoY.
Key concerns
- Consolidated PAT fell 52.7% YoY to ₹22.6 crore, materially worse than standalone PAT of ₹36.78 crore, indicating subsidiary or joint-operation drag.
- Standalone EBITDA margin compressed to 12.2% from 16.1% YoY as materials plus subcontracting increased to 67.25% of revenue from 64.17%; the filing does not disclose the cause.
- Operating cash flow remained negative at ₹81.61 crore in H1FY27 despite H1 standalone PAT of ₹73.86 crore.
- A ₹100 crore debt prepayment was made during Q2FY27, but derived net debt increased to ₹563.03 crore from ₹522.18 crore at March 31, 2026 because cash declined.
Research and educational content only. Not investment advice.