Hindustan Construction Company Limited has received reaffirmation of its credit ratings from CARE Ratings Limited, reflecting the company's continued improvement in financial risk profile and successful execution of fund-raising plans. The rating agency maintained its assessment across multiple facilities and instruments, signaling confidence in the infrastructure major's operational and financial trajectory.

Rating Details and Facility Coverage

CARE Ratings reaffirmed ratings across facilities totaling ₹8,145.27 crore, with several instruments showing reduced exposure amounts compared to previous assessments.

The reaffirmation comes following the company's communication dated April 1, 2026, and aligns with regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Significant Debt Reduction and Capital Strengthening

The rating reaffirmation is primarily driven by HCC's substantial debt reduction and improved liquidity position. The company successfully raised ₹1,000 crore through a Rights Issue in December 2025 and recovered ₹720 crore from arbitration proceeds via issuance of arbitration bank guarantees in FY26. These funds were strategically utilized for working capital requirements and debt repayment obligations.

The impact of these initiatives resulted in a dramatic reduction in debt levels from ₹3,279 crore as of March 31, 2025, to ₹2,016 crore as of March 31, 2026. During FY26, the company repaid ₹1,537 crore of debt obligations against scheduled repayment requirements of ₹935 crore, demonstrating strong commitment to deleveraging.

Reduced Contingent Liability Exposure

A significant development supporting the rating reaffirmation is the reduction in corporate guarantee exposure extended by HCC to its special purpose vehicle, Prolific Resolution Private Limited (PRPL). The guarantee coverage has been reduced from 100% of carved-out debt to 20%, limiting HCC's exposure to PRPL's debt to ₹571 crore. This material reduction in contingent liability risk strengthens the company's standalone credit profile.

Order Book Position and Revenue Visibility

HCC maintains a satisfactory order book position of ₹13,148 crore as of December 31, 2025, providing medium-term revenue visibility equivalent to approximately 2.9 times the total operating income of FY25. The order book composition shows diversification across segments:

• Transportation Segment: 65%
• Hydro: 19%
• Water works: 12%
• Nuclear and Special segment: 4%

Geographically, orders are well-distributed across over eight states, reducing concentration risk. In FY25 and 9MFY26, the company added orders worth ₹5,714 crore and ₹3,547 crore respectively, with additional L1 orders of ₹1,894 crore as of December 31, 2025.

Financial Performance Analysis

Despite revenue moderation, HCC demonstrated improved profitability metrics. Total operating income stood at ₹4,526 crore in FY25 compared to ₹4,888 crore in FY24, primarily due to completion of legacy projects and delays in new project awards during election periods. However, PBILDT margins improved significantly to 13.43% in FY25 from 10.16% in FY24, driven by lower legal expenses and execution of higher-margin projects.

In 9MFY26, revenue moderated to ₹2,857 crore as newly awarded projects remained in early mobilization stages, though margins remained healthy at 11.36%.

Rating Outlook and Future Prospects

CARE Ratings maintains a stable outlook for HCC, expecting the company to maintain stable risk profile backed by favorable sector outlook and strong order book supporting healthy growth prospects. The rating agency anticipates continued improvement in liquidity position, with HCC and PRPL at advanced stages of resolving arbitration claims aggregating ₹700 crore to ₹1,000 crore in FY27.

Key positive factors identified include continued work order additions while maintaining profitability, debt rationalization with total debt/EBITDA improvement to 4x, and resolution of arbitration debtors. However, challenges remain in the form of extended collection cycles, with receivable days at 389 days in FY25, and the company's presence in the highly competitive construction industry.

Hindustan Construction Company Ltd. has filed its quarterly compliance certificate under SEBI regulations for the quarter ended March 31, 2026. The certificate, submitted on April 6, 2026, fulfills the company's regulatory obligations regarding securities transactions during Q4FY26.

Regulatory Compliance Certificate

The certificate was issued in accordance with Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. This regulation mandates companies to provide details of securities that have been dematerialized or rematerialized during each quarter to relevant stock exchanges and depositories.

Submission Details

The company confirmed that all required details of securities dematerialized and rematerialized during Q4FY26 have been furnished to stock exchanges where Hindustan Construction Company's shares are listed. The certificate was digitally signed by Company Secretary Nitesh Kumar Jha on April 6, 2026.

Recipients of the Certificate

The compliance certificate was submitted to multiple regulatory and market infrastructure institutions:

• BSE Limited - Corporate Relationship Department, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai
• National Stock Exchange of India Ltd. - Exchange Plaza, Bandra-Kurla Complex, Mumbai
• National Securities Depository Ltd. - Naman Chamber, Bandra Kurla Complex, Mumbai
• Central Depository Services (India) Ltd. - Marathon Futurex, Lower Parel, Mumbai

Corporate Governance

This quarterly filing demonstrates Hindustan Construction Company's adherence to SEBI's regulatory framework for listed companies. The timely submission of the certificate ensures compliance with depositories and participants regulations, maintaining transparency in securities transactions and corporate governance standards.