Hindustan Construction Company Reports No Deviations in QIP Fund Utilization for Q2

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:

Purpose	Amount (₹ in crore)
Debt Repayment	390.00
Working Capital Augmentation	150.00
General Corporate Purposes	22.86
Issue Expenses	37.14
Total	600.00

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.78%	+7.81%	-6.35%	-24.22%	-43.11%	+297.24%

Hindustan Construction Company Limited (HCC) has reported a robust order book and significant business developments in its latest financial results. The company has secured new orders worth ₹2,770 crore, including projects for Patna Metro and Hindalco Smelter, while maintaining a strong order book of ₹13,152 crore.

Financial Performance

HCC reported the following standalone financial results:

Metric	Q2 FY26	Q2 FY25	YoY Change
Turnover	957.80	1203.00	-20.4%
Net Profit	36.70	50.20	-26.9%
EBITDA Margin	16.1%	17.8%	-1.7%

Despite a decrease in turnover and net profit compared to the same quarter last year, HCC maintained an EBITDA margin of 16.1%.

Order Book and Business Momentum

The company's order book stood at ₹13,152 crore as of September 30, 2025. HCC has also reported:

Secured three new orders totaling ₹2,770 crore
Lowest bidder status in a project worth ₹840 crore
A bid pipeline of approximately ₹57,000 crore

Project Highlights

HCC made progress across multiple infrastructure projects:

Mumbai Metro Line 3 (Package UGC 02) inaugurated by Prime Minister Narendra Modi
Indore Metro advancing with piling works at key locations
Tehri Pumped Storage Project completed synchronisation of Unit 7 with the Grid
Vishnugad Pipalkoti HEP achieved 7.5 km of tunneling out of 12.1 km

Deleveraging Initiatives

The company has made progress in its deleveraging efforts:

₹339 crore in prepayments during FY26
Additional ₹450 crore repayment expected in Q3
Total debt as of October 31, 2025: ₹3,050 crore
Available awards: ₹1,800 crore

Rights Issue and Corporate Guarantee

HCC has received approval for a rights issue of equity shares valued up to ₹1,000 crore. This rights issue will allow existing shareholders to purchase additional shares, potentially strengthening the company's capital base for business operations. The company plans to complete the rights issue in Q3.

Additionally, HCC has reduced its corporate guarantee on the debt of Prolific Resolution Pvt. Ltd. from 100% to 20%, with formal approval from 97.4% of lenders.

The company's focus on hydro, transport, and water projects, coupled with its order book and ongoing deleveraging efforts, positions HCC for potential growth in the infrastructure sector.