HCC Falls 6% as Rs 1,000 Crore Rights Issue Launches to Aid Deleveraging

On Friday, the HCC share price was down by 5.71% today, touching the day’s low price of Rs 17.81 on NSE after it launched an HCC rights issue to raise up to Rs 1,000 crore amid ongoing deleveraging efforts and robust order inflows.

Rights Issue Details

Hindustan Construction Company approves a rights issue of up to 79.99 crore fully paid-up equity shares at Rs 12.50 each, aggregating nearly Rs 1,000 crore. The board's Securities Issuance Committee fixes the ratio at 277 rights shares for every 630 fully paid equity shares held on the record date of December 5, 2025. 

The Rights entitlements credit was on December 8, 2025, and the issue opened on December 12 and closes on December 22, 2025, with NSE and BSE granting in-principle approvals on November 28 and December 1, respectively.

Promoters commit to ensuring full subscription, planning to infuse funds if undersubscribed. Proceeds target debt prepayment and general corporate purposes, including business growth, aligning with FY26 deleveraging goals of Rs 1,000-1,100 crore from the current debt of around Rs 3,050 crore.

Q2FY26 Financials

HCC posts standalone revenue of Rs 958 crore in Q2 FY26, down 20% year-on-year. Net profit falls 27% to Rs 37 crore, yet EBITDA margin holds steady at 16.1%, reflecting cost discipline. Consolidated figures show revenue at Rs 961-Rs 983 crore, EBITDA at Rs 147.8 crore with margins at 15.38%, and PAT at Rs 47.8 crore.

Deleveraging advances with Rs 339 crore prepayments in FY26 year-to-date, and another Rs 450 crore repayment is expected in Q3. The corporate guarantee on Prolific Resolution Private Limited reduces after 97.4% lender approvals, thus improving balance sheet health.

Guidance and Outlook

Management guides for flat FY26 revenue amid order transitions but targets 10,000 crore order inflows, potentially doubling the order book to Rs 30,000 crore by FY27 through selective bidding.

Interest costs are expected to drop over 100 crore annualised post-FY26 prepayments, boosting PAT from FY27 as new projects like Patna Metro and Bhivpuri Pumped Storage Project mobilise. The bid pipeline stands at Rs 57,000 crore, highlighting hydro, transport, and water.

Recent Orders

HCC secures three orders totalling Rs 2,770 crore: two Patna Metro underground packages and Hindalco's aluminium smelter expansion. The company emerges as the lowest bidder on an Rs 840 crore hydropower project. The order book reaches Rs 13,152 crore as of September 30, 2025, diversified across transport, hydro, water, nuclear and buildings.