Hindustan Construction Company Limited (HCC) has submitted its monitoring agency report for the quarter ended September 30, regarding the utilization of funds from its ₹600 crore Qualified Institutional Placement (QIP) issue of equity shares. The report, prepared by CARE Ratings Limited and reviewed by the company's Audit Committee, reveals that the funds are being deployed as per the original plan with no deviations from the disclosed objectives.

Fund Utilization Details

According to the report, HCC had utilized ₹366.88 crore by the previous quarter for various purposes, with no additional utilization during the current quarter. The QIP issue period was from December 16 to December 19. The funds have been allocated as follows:

Unutilized Funds

As of September 30, ₹200 crore remains unutilized from the total issue proceeds. This amount has been temporarily invested in fixed deposits with ICICI Bank, earning a return of 5.25% per annum.

Compliance and Transparency

The submission of this monitoring report demonstrates HCC's commitment to transparency and compliance with regulatory requirements. The report was filed in accordance with Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 82(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Company's Financial Position

While the QIP fund utilization report shows adherence to the stated objectives, it's worth noting that HCC's financial position remains under scrutiny. The company's statutory auditors have highlighted concerns regarding the recoverability of certain receivables and the recognition of deferred tax assets.

As per the latest financial results, HCC reported a consolidated revenue of ₹960.70 crore, with a net profit of ₹47.80 crore. The company's order book stood at ₹13,152.00 crore as of September 30, indicating a strong pipeline of projects.

The timely and appropriate utilization of QIP funds is crucial for HCC as it seeks to strengthen its balance sheet and support ongoing operations in the infrastructure sector. Investors and stakeholders will likely continue to monitor the company's progress in deploying the remaining funds and its impact on HCC's overall financial health.

Hindustan Construction Company (HCC), a leading infrastructure development company, has reported its financial results for the second quarter of fiscal year 2026. The company saw a decline in net profit and revenue compared to the same period last year, but maintained a strong order book position.

Financial Performance

HCC's standalone financial results for Q2 FY26 show:

The company's consolidated revenue for Q2 FY26 was ₹960.7 crore, compared to ₹1,406.9 crore in Q2 FY25.

Order Book and New Projects

Despite the decline in financial metrics, HCC's order book remains robust:

• Order book stood at ₹13,152 crore as of September 30, 2025
• Secured three new orders totaling ₹2,770 crore:
  • Two packages of Patna Metro
  • Aluminium smelter expansion project from Hindalco
• Lowest bidder for a project worth ₹840 crore

Project Execution Highlights

HCC made significant progress across multiple infrastructure projects in Q2 FY26:

• Mumbai Metro Line 3 inaugurated by Prime Minister Narendra Modi
• Progress on various hydropower projects

Deleveraging Initiatives

The company continued its efforts to reduce debt:

• Lender prepayments of ₹80 crore during the quarter
• Year-to-date debt repayment of ₹215 crore

Outlook

With a strong order book and recent project wins, HCC appears well-positioned for future growth. However, the company will need to address the challenges that led to the decline in revenue and profitability in the current quarter.

Investors and analysts will likely be watching HCC's ability to convert its robust order book into revenue growth and improved profitability in the coming quarters.