Hindustan Construction Company Limited has informed the Exchange about Credit Rating
HCC · price
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Infomerics has reaffirmed HCC's credit rating at IVR BBB-/Stable (long-term) and IVR A3 (short-term) across all instruments, covering total facilities of Rs. 7,425.50 crore. The reaffirmed instruments include Non-Convertible Debentures (Rs. 700.50 crore), Optionally Convertible Debentures (Rs. 701.90 crore), and Long Term/Short Term Facilities (Rs. 7,313.28 crore), all of which have seen reductions in outstanding amounts. FY25 showed strong improvement: EBITDA margin jumped to 19.43% from 13.62%, total debt fell to Rs. 2,353.34 crore from Rs. 2,846.97 crore, and gearing ratio improved dramatically to 1.38x from 9.24x, aided by Rs. 950 crore raised through a rights issue and QIP. The order book stands at Rs. 11,852.40 crore (2.47x FY25 revenue), with potential L1 orders pushing it to Rs. 17,902.40 crore. Key concerns remain around a Rs. 1,000 crore debt repayment obligation in FY26, stretched liquidity, and elongated receivable days of 218.
The rating reaffirmation with a stable outlook signals that HCC's credit profile has stabilized post its Resolution Plan, with meaningful improvement in leverage and margins. Near-term, shareholders should watch for the company's ability to meet its Rs. 1,000 crore FY26 debt obligation through planned fund raises and arbitration award recoveries—any slippage could trigger a negative rating action.