Hindustan Construction Company Limited has informed the Exchange about Credit Rating
HCC · price
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CARE Ratings has reaffirmed Hindustan Construction Company Limited's credit rating at CARE BBB- with a Stable outlook for long-term facilities, and CARE A3 for short-term bank facilities. The reaffirmation follows continued improvement in HCC's financial risk profile, supported by significant debt reduction from ₹3,279 crore (March 2025) to ₹2,016 crore (March 2026). The company raised ₹1,000 crore via Rights Issue in December 2025 and recovered ₹720 crore from arbitration awards, which were used for debt repayment and working capital. Total debt reduced by ₹1,537 crore in FY26 against scheduled repayment of ₹935 crore. The order book stood at ₹13,148 crore as of December 2025, providing medium-term revenue visibility. PBILDT margins improved to 13.43% in FY25 from 10.16% in FY24, driven by lower legal expenses and execution of high-margin projects.
The reaffirmation of investment-grade rating with stable outlook signals improving creditworthiness and reduced default risk for HCC. Significant debt reduction and better profitability margins are positive developments for shareholders, though elevated leverage and high collection days remain concerns.