Hindustan Construction Company Ltd. (HCC) has published its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26 as part of its 100th Annual Report. The report is prepared on a standalone basis and covers the company's project sites and offices across India. HCC is engaged in the engineering, procurement, and construction of large infrastructure projects spanning transportation, power, marine projects, irrigation and water supply, special buildings, and industrial plants, with majority clients being State and Central Government departments, Ministries, and local Municipal Bodies.

Company Overview and Financial Highlights

The report provides a snapshot of HCC's key corporate and financial parameters for the reporting period. The company, incorporated in 1926, is listed on both the National Stock Exchange of India Limited and BSE Limited.

CSR is applicable to HCC as per Section 135 of the Companies Act, 2013. The company's reporting boundary encompasses standalone operations, though several Business Responsibility and Sustainability initiatives are extended to subsidiary and associate companies as well.

Governance, Ethics, and Compliance

HCC's governance framework is anchored in its Code of Conduct, which applies to all Executive Directors, Senior Management Personnel, and Functional Heads. The company maintains a zero-tolerance policy on corruption and bribery. All policies covering the nine NGRBC principles have been approved by the Board and translated into procedures, extending to value chain partners as well.

Key governance highlights for FY 2025-26 include:

• No monetary or non-monetary penalties were paid in proceedings with regulators, law enforcement agencies, or judicial institutions during the year.
• No disciplinary actions were taken by any law enforcement agency against Directors, KMPs, Employees, or Workers on charges of bribery or corruption.
• No data breaches were reported during the year.
• No human rights violation complaints were received in FY 2025-26.
• No anti-competitive conduct cases were reported during the year.

The Board's policies are reviewed periodically or on a need basis by the CSR Committee as part of ESG review. The highest authority responsible for implementation and oversight of the Business Responsibility Policy is Mr. Arjun Dhawan, Vice Chairman & Managing Director (DIN: 01778379).

Workforce, Safety, and Well-being

HCC employs over 25,000 workers in addition to more than 1,100 of its own employees, reflecting the labour-intensive nature of its construction business. The company has established an Integrated Management System incorporating Occupational Health & Safety (ISO 45001), Quality (ISO 9001), and Environmental Management (ISO 14001) standards.

The company is committed to achieving 'ZERO reportable injuries' at each work front. Corrective actions following incidents are investigated by internal experts, with key learnings communicated across the organization to prevent recurrence. Life insurance coverage is extended to all employees and workers in the event of death.

On workforce diversity, the Board of Directors comprises 8 members, of whom 1 is a woman, representing a female participation rate of 12.50%.

Environmental Performance and Sustainability Initiatives

HCC is ISO 14001:2015 certified, with certification encompassing all operations including offices, headquarters, construction sites, and temporary facilities. The company currently captures and calculates Scope 1 and Scope 2 greenhouse gas emissions. No Environmental Impact Assessments were conducted by HCC in FY 2025-26, as this falls under the scope of project proponents.

Notable environmental initiatives undertaken during the reporting period include:

All company projects and facilities comply with applicable environmental laws, including the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, and the Environment Protection Act. One HCC project — the Agardanda Creek Bridge Project — falls under the Coastal Regulation Zone (CRZ), with Environmental Clearance obtained under the client's scope. All project sites operate under Zero Liquid Discharge (ZLD) principles, with wastewater treated and recycled or reused as appropriate.

Stakeholder Engagement and CSR

HCC has systematically identified and engaged with a diverse set of stakeholders including customers, suppliers, employees, investors, JV partners, and local communities. The company's CSR Committee is responsible for decision-making on sustainability-related issues. Structured consultation processes are in place for both employees and workers, with monthly committee meetings, suggestion boxes at project sites, and regular management reviews.

The company achieved a customer satisfaction score of 93.20% in FY 2025-26, based on client feedback collected every six months covering parameters such as designing, planning, construction capability, project quality, and management. HCC operates in a B2B model with no specific consumer products, and Extended Producer Responsibility (EPR) is not applicable to its business.

HCC is a member of the UN Global Compact (UNGC), a signatory to 'Caring for Climate' and 'The CEO Water Mandate', and a founding member of the Disaster Resource Network India. The company has published thirteen sustainability reports prepared in accordance with Global Reporting Initiative (GRI) guidelines, reflecting its long-standing commitment to environmental transparency and responsible business conduct.

Hindustan Construction Company Ltd (HCC) has announced its 100th Annual General Meeting (AGM) scheduled for Tuesday, August 18, 2026, at 11:00 a.m., to be conducted through Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The meeting marks a landmark occasion as the Company completes one hundred years of engineering and construction operations across India, having contributed to the country's infrastructure across bridges, dams, tunnels, hydroelectric projects, nuclear facilities, metros and expressways.

AGM Details and Agenda

The forthcoming AGM will be conducted exclusively in virtual mode, with no physical venue. Members may participate through the NSDL e-Voting platform, with remote e-Voting open from August 14, 2026 at 09:00 a.m. to August 17, 2026 at 05:00 p.m. The record date for determining voting eligibility is August 11, 2026.

The agenda includes adoption of audited standalone and consolidated financial statements for FY2025–26, re-appointment of Mr. Aditya Pratap Jain as a Director liable to retire by rotation, appointment of Mr. Nakul Pasricha as an Independent Director, payment of remuneration to Non-Executive Chairman Mr. Ajit Gulabchand, ratification of Cost Auditor remuneration, increase in authorised share capital from ₹300 crore to ₹400 crore, and approval for issuance of securities up to ₹800 crore.

FY2025–26 Financial Performance

During FY2025–26, HCC reported standalone income from operations of ₹3,937.25 crore compared to ₹4,801.1 crore in the previous year. Net profit after tax improved significantly to ₹205.81 crore from ₹84.9 crore in FY25, driven by a reduction in tax expenses. EBITDA (excluding other income) stood at ₹633.24 crore, with an EBITDA margin of 16.08% against 19.43% in the prior year. The Board has not recommended any dividend for FY2025–26 in order to conserve resources.

Quarterly EBITDA margins reflected stable execution across the year, at approximately 14.9% in Q1 FY26, approximately 16.1% in Q2 FY26, approximately 15.2% in Q3 FY26, and approximately 18.2% in Q4 FY26.

Balance Sheet Transformation and Capital Raising

A key highlight of FY2025–26 was HCC's continued deleveraging. The Company achieved debt prepayments of approximately ₹1,500 crore, resulting in a 38% YoY reduction in debt to ₹1,995 crore. The Debt Equity Ratio improved to 0.27 from 0.79 in FY25. This was supported by a Promoter Group-led ₹1,000 crore rights issue, which was subscribed at 200%, reflecting strong investor confidence. During the year, 79,99,91,900 equity shares were allotted at ₹12.50 per share on December 23, 2025, raising ₹999.99 crore. Pro forma annual interest cost savings of approximately ₹112 crore are expected to accrue in FY27 from these prepayments.

Order Book and Operational Highlights

HCC's order book strengthened from ₹11,188 crore to ₹12,971 crore during the year. The Company secured 7 new contracts aggregating to approximately ₹8,828 crore (Company's share was ₹5,636 crore in joint venture). The pipeline of bids under evaluation exceeded ₹35,000 crore, with an overall pipeline exceeding ₹50,000 crore across transportation, hydro and urban infrastructure segments.

Operationally, the year saw several landmark achievements:

• Mumbai Metro Line 3 (UGC-02): Delivered and inaugurated, contributing to Mumbai's 33.5 km first fully underground metro corridor. HCC executed four underground stations—CSMT, Kalbadevi, Girgaon and Grant Road—along with twin bored tunnels extending over 3,115 metres.
• Anji Khad Cable-Stayed Railway Bridge: India's first cable-stayed railway bridge, featuring a 193-metre-high pylon, was successfully completed and inaugurated.
• Tehri Pumped Storage Plant: The 1,000 MW plant was fully commissioned, making it India's largest operational pumped storage project.
• Agardanda Creek Bridge: Construction progressed on the 4.31 km bridge, with 94 piles completed and 216 precast segments cast.
• Vishnugad Pipalkoti Hydroelectric Project: Tunnelling reached approximately 8.5 km of the total 12.1 km headrace tunnel.
• Mumbai Coastal Road: Inaugurated as a marquee urban infrastructure project in FY2025–26.

Corporate Governance and Board Changes

During FY2025–26, Mr. Arjun Dhawan was appointed as Vice Chairman & Managing Director with effect from June 26, 2025, following the cessation of Mr. Jaspreet Bhullar as MD & CEO on June 23, 2025. Mr. Rahul Shukla was appointed as Chief Financial Officer with effect from June 1, 2025. Mr. Arun Karambelkar ceased to be an Independent Director upon his demise on November 2, 2025. Mr. Nakul Pasricha was appointed as an Additional Independent Director with effect from July 10, 2026, and his appointment is proposed for member approval at the 100th AGM. The Board met 5 times during FY2025–26, and the paid-up equity share capital as on March 31, 2026 stood at ₹2,61,94,68,062, comprising 2,61,94,68,062 equity shares of ₹1 each.

CARE Ratings revised HCC's bank facility and debenture ratings from CARE BB+; Positive to CARE BBB-; Stable during the year, reflecting the Company's improving financial position. The Company's Integrated Management System was recertified for a further three years following successful audits across hydro, transportation and nuclear project sites.