Hindustan Construction Company Q2 FY27 results: net profit down 52.8% to ₹22.56 crore, revenue down 6.7%

How did Hindustan Construction Company perform in Q2 FY27?

Hindustan Construction Company reported consolidated revenue of ₹896.83 crore in Q2 FY27, down ₹63.91 crore or 6.7% from Q2 FY26. Total income was ₹925.15 crore, while EBITDA fell ₹44.98 crore or 30.4% to ₹102.77 crore. EBITDA margin declined 3.9 percentage points to 11.5% from 15.4%.

Profit before tax was ₹35.17 crore, down ₹9.36 crore or 21.0% from Q2 FY26, and tax expense was ₹12.68 crore against a tax credit of ₹5.48 crore. Net profit was ₹22.56 crore, down ₹25.22 crore or 52.8%, and basic EPS was ₹0.09 compared with ₹0.26. Against Q1 FY27, revenue fell ₹96.59 crore or 9.7% and net profit fell ₹28.52 crore or 55.8%.

On a standalone basis, Q2 FY27 revenue was ₹895.82 crore, down 6.5%, while profit was ₹36.78 crore compared with profit before exceptional items of ₹36.68 crore. Standalone EBITDA margin was 12.2% in the investor presentation, compared with 16.1% in Q2 FY26.

What changed in Hindustan Construction Company's costs and profit?

Other income increased ₹5.81 crore or 25.8% year on year to ₹28.32 crore, while total expenses declined ₹48.74 crore or 5.2% to ₹889.98 crore. Cost of materials increased ₹21.32 crore or 16.2% to ₹152.72 crore, employee cost rose ₹7.68 crore or 9.2% to ₹91.36 crore, and depreciation rose ₹0.60 crore or 10.3% to ₹6.45 crore.

Finance costs fell ₹30.41 crore or 25.4% to ₹89.47 crore, while other expenses declined ₹47.93 crore or 8.0% to ₹549.98 crore. There was no exceptional item. Tax moved from a credit of ₹5.48 crore in Q2 FY26 to an expense of ₹12.68 crore in Q2 FY27.

The investor presentation reported consolidated employee costs up 9.2% and finance costs down 25.4% year on year. It also reported other comprehensive income of -₹31.8 crore and total comprehensive loss of ₹9.3 crore for Q2 FY27. The filing does not state why consolidated revenue and profit declined.

How did the first half of FY27 go?

In the first half of FY27, Hindustan Construction Company reported revenue of ₹1,890.25 crore, down ₹161.82 crore or 7.9% from H1 FY26. Total income was ₹1,980.65 crore, down ₹121.26 crore or 5.8%, while profit before tax was ₹109.09 crore, down ₹8.76 crore or 7.4%.

H1 FY27 net profit was ₹73.64 crore, down ₹24.87 crore or 25.2% from ₹98.51 crore in H1 FY26, and EPS was ₹0.28 compared with ₹0.54. The first-half figures therefore showed lower revenue and profit than the corresponding period of the previous financial year.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹8,476.25 crore, compared with ₹8,491.78 crore at 31 March 2026. Total equity was ₹2,167.75 crore against ₹2,127.15 crore, while borrowings fell to ₹956.91 crore from ₹1,019.15 crore. Cash and cash equivalents were ₹292.95 crore against ₹381.41 crore.

Trade receivables declined to ₹1,667.98 crore from ₹2,252.72 crore, inventories rose to ₹156.43 crore from ₹132.85 crore, and trade payables fell to ₹1,953.85 crore from ₹2,027.28 crore. Operating cash flow in H1 FY27 was ₹196.61 crore, compared with ₹134.68 crore in H1 FY26.

Investing cash flow was negative ₹60.15 crore in H1 FY27 against negative ₹21.95 crore in H1 FY26, while financing cash flow was negative ₹224.45 crore against negative ₹215.37 crore. Capital expenditure was ₹116.78 crore compared with ₹25.83 crore.

How has Hindustan Construction Company done over the last 8 quarters?

Revenue in the reported quarterly series peaked at ₹1,373.7 crore in Q4 FY25 and was lowest at ₹896.83 crore in Q2 FY27. Profit after tax was a net loss of ₹38.92 crore in Q3 FY25 and peaked at ₹90.08 crore in Q4 FY25, before reaching ₹22.56 crore in Q2 FY27.

EBITDA margin fell from 17.2% in Q4 FY26 to 10.5% in Q1 FY27 and then rose to 11.5% in Q2 FY27. Revenue remained lower in Q2 FY27 than in the preceding quarter, while net profit declined from ₹51.08 crore to ₹22.56 crore.

What else did the company announce?

The board appointed Vivek Singhal as Chief Executive Officer and Key Managerial Personnel with effect from 5 November 2026. The filing described him as an EPC and infrastructure professional with over 38 years of experience, including 16 years of international experience.

Nitesh Kumar Jha resigned as Company Secretary and Compliance Officer with effect from 5 November 2026. Debashis Dey was appointed Company Secretary and Compliance Officer with effect from 20 November 2026. The board also revised the list of persons authorised to determine materiality of events and issue disclosures. No dividend or fund-raise details were given in the provided same-day filings.

What did Hindustan Construction Company's management say?

In its investor presentation, management reported a ₹12,901 crore order book, ₹524 crore of new orders in Q2 FY27 and L1 bids worth ₹2,010 crore, with HCC's share at ₹1,557 crore. Management also reported 16 submitted bids worth approximately ₹34,805 crore under evaluation and a pipeline of ₹85,907 crore under pursuit.

Management said the company had prepaid ₹100 crore of debt in Q2 FY27 and targeted a further ₹108 crore by December 2026. It also said the Supreme Court had upheld a ₹210 crore award in favour of HCC and that the monies were expected to be released in Q3 FY27.

Management highlighted execution progress across transport, hydro, water and nuclear or building projects, including TBM and excavation work at Indore Metro, factory acceptance testing at Patna Metro, work on the Agardanda Creek Bridge and progress at Bhivpuri Pumped Storage Project. The presentation did not provide an analysts' question-and-answer record.

How did other Civil Construction companies do?

Among 29 Civil Construction companies compared for the quarter, the median revenue growth was 9.4%. Eight peers grew more slowly than Hindustan Construction Company, while 21 grew faster. Of the 29 peers for which profit was compared, 22 reported higher profit.