HECPROJECT - HEC Infra Proj.
📢 Recent Corporate Announcements
HEC Infra Projects Limited has secured a domestic EPC contract worth Rs 36.50 crores from Siemens Financial Services Private Limited. The project involves the installation of a 10.4 MW Solar Power Plant Generation system. The contract is expected to be executed within a short timeframe of 6 months, suggesting a rapid revenue recognition cycle. This order aligns with the company's strategy to expand its footprint in the renewable energy sector and bid for similar projects across various states.
- Received a domestic EPC work order worth Rs 36.50 crores from Siemens Financial Services
- Project entails the setup of a 10.4 MW Solar Power Plant Generation system
- Execution timeline is set for 6 months, indicating quick project turnaround
- Management plans to leverage this order to bid for similar private and government projects in other states
- The transaction does not involve any promoter interest or related party transactions
HEC Infra Projects Limited delivered a robust performance in Q3 FY26, with total income surging 107.86% YoY to ₹57.77 crore. Net profit for the quarter doubled to ₹2.92 crore, while the 9-month PAT of ₹6.48 crore has already surpassed the total FY24 PAT of ₹4.72 crore. The company maintains a strong order book of ₹326 crore as of March 2025, providing high revenue visibility. Management is strategically pivoting towards emerging segments like Battery Energy Storage Systems (BESS) and Green Hydrogen to drive future growth.
- Total Income for Q3 FY26 rose 107.86% YoY to ₹57.77 Cr compared to ₹27.79 Cr in Q3 FY25.
- Net Profit increased by 103.74% YoY to ₹2.92 Cr, with EPS improving from ₹1.41 to ₹2.69.
- Order book remains healthy at ₹326 Cr as of March 31, 2025, with new orders worth ₹23.55 Cr added in Q3.
- EBITDA grew 84.88% YoY to ₹5.32 Cr, although EBITDA margins saw a slight compression to 9.21% from 10.35%.
- Credit rating assigned at IVR BBB- (Stable) and IVR A3, reflecting an improved financial profile and lender confidence.
HEC Infra Projects Limited reported a strong year-on-year performance for the quarter ended December 31, 2025, with Profit After Tax (PAT) doubling to ₹2.92 crore from ₹1.43 crore in the previous year. Revenue from operations grew by 35.6% YoY to ₹37.35 crore, although it saw a slight sequential decline from ₹40.82 crore in Q2. The company's 9-month cumulative performance is robust, with total income reaching ₹126.51 crore compared to ₹66.79 crore in the same period last year. Earnings per share (EPS) improved significantly to ₹2.86 from ₹1.41 YoY.
- Net Profit (PAT) surged 103.7% YoY to ₹2.92 crore in Q3 FY26.
- Revenue from operations increased 35.6% YoY to ₹37.35 crore.
- 9-month cumulative PAT reached ₹6.48 crore, an 81.5% increase over the previous year's ₹3.57 crore.
- Earnings Per Share (EPS) rose to ₹2.86 from ₹1.41 in the year-ago quarter.
- The company reported zero outstanding defaults on loans and debt securities.
HEC Infra Projects Limited has bagged a domestic contract worth ₹6.14 crores from Advait Energy Transitions Limited. The scope of work includes the design, manufacturing, testing, and supply of pole accessories for the PGVCL project in Gujarat. The project is expected to be executed within a period of 12 months. This win is part of the company's strategy to scale its operations and bid for larger infrastructure projects in the future.
- Secured a domestic work order valued at ₹6.14 crores from Advait Energy Transitions Limited
- Contract involves design, manufacturing, and supply of pole accessories for PGVCL projects in Amreli and Bhavnagar
- Execution period for the entire contract is set at 12 months
- The company plans to leverage this experience to bid for similar private and government projects nationwide
HEC Infra Projects Limited has bagged a domestic contract worth Rs. 16.35 crores from Advait Greenergy Private Limited. The scope includes the supply, erection, testing, and commissioning of Balance of System (BOS) items for a 60MW/115.37 MWh Battery Energy Storage System (BESS) in Patan, Gujarat. The project has an execution timeline of 12 months and marks the company's strategic entry into the high-potential BESS sector. Management intends to leverage this experience to bid for similar large-scale green energy projects across various states.
- Secured a domestic work order worth Rs. 16.35 crores from Advait Greenergy Private Limited.
- Project involves BOS items for a 60MW/115.37 MWh Battery Energy Storage System (BESS).
- Execution period is set for 12 months at the 220 KV Radhanpur substation in Patan district.
- The contract covers both electrical and civil works on a Delivery at Place (DAP) basis.
- Company plans to target similar future projects in both private and government sectors.
HEC Infra Projects Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Cameo Corporate Services Limited, confirms that all dematerialization requests for the quarter ended December 31, 2025, were processed within the stipulated time limits. It verifies that security certificates were mutilated, cancelled, and the depositories' names were updated in the register of members. This is a standard administrative filing required by all listed companies in India.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Issued by Registrar and Transfer Agent (RTA) Cameo Corporate Services Limited.
- Confirms dematerialization requests were processed and listed on stock exchanges where applicable.
- Verification that security certificates were mutilated and cancelled as per SEBI guidelines.
- Confirms the name of depositories substituted in the register of members within the time limit.
HEC Infra Projects Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the board of directors announces the unaudited financial results. The specific date for the board meeting to consider these results will be communicated at a later time.
- Trading window closure for designated persons starts on January 1, 2026
- Closure pertains to the financial results for the quarter and nine months ending December 31, 2025
- Window to reopen 48 hours after the official announcement of financial results
- Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015
HEC Infra Projects Limited has secured a work order worth Rs 4.32 crore from the Ahmedabad Municipal Corporation (AMC). The project involves augmentation work for electrical, mechanical, and instrumentation systems, along with civil repairs at the Krishnanagar WDS in Ahmedabad. The contract is scheduled to be executed over a period of 12 months. This win highlights the company's continued focus on government infrastructure projects and its strategy to expand into similar projects across other states.
- Received a work order valued at Rs 4.32 crore (including GST) from Ahmedabad Municipal Corporation.
- Project scope includes electrical, mechanical, and instrumentation augmentation with civil repairs.
- The execution timeline for the contract is set at 12 months.
- The company plans to bid for similar projects in other states for both private and government sectors.
Financial Performance
Revenue Growth by Segment
Not disclosed by segment; total revenue grew 79.74% YoY to INR 68.41 Cr in H1 FY26 from INR 38.06 Cr in H1 FY25. Q2 FY26 revenue stood at INR 40.50 Cr, a 102.1% increase YoY. This growth is driven by improved execution across multiple projects and consistent order inflows.
Geographic Revenue Split
Major revenue is derived from Gujarat (percentage not disclosed), with small portions realized from Haryana. High concentration in Gujarat exposes the company to regional site availability risks and state-specific budget reallocations, which can stall project execution.
Profitability Margins
Gross margins are not explicitly disclosed. EBITDA margin improved to 9.41% in H1 FY26 from 8.51% in H1 FY25. Net Profit margin stood at 5.18% in H1 FY26 compared to 5.29% in H1 FY25. The company prioritizes profitability over volume, refusing low-margin projects to protect these margins.
EBITDA Margin
EBITDA margin was 9.41% in H1 FY26, up 90 basis points YoY. EBITDA grew 94.88% YoY to INR 6.47 Cr from INR 3.32 Cr. This improvement reflects a disciplined project management approach and a focus on high-margin SITC services.
Capital Expenditure
Historical and planned capital expenditure figures are not disclosed in the available documents.
Credit Rating & Borrowing
The long-term rating remains 'Negative' due to modest scale and high working capital intensity. Interest costs rose 71.28% YoY to INR 1.61 Cr in H1 FY26. The company is negotiating with banks for better rates in Q3 FY26 to improve its interest coverage ratio, which has a target of above 1.50 times for a rating upgrade.
Operational Drivers
Raw Materials
Specific raw material names are not disclosed; however, they are related to SITC (Supply, Installation, Testing, and Commissioning) services for power and infrastructure.
Capacity Expansion
Current installed capacity and planned expansion metrics are not disclosed as the company operates as an EPC service provider.
Raw Material Costs
Raw material costs were INR 36.42 Cr in H1 FY26, representing 53.2% of total income. This is an increase from INR 23.58 Cr in H1 FY25. Fluctuations in these costs directly impact project profitability as many EPC contracts have limited escalation clauses.
Manufacturing Efficiency
Efficiency is reflected in the order book to sales ratio of 2.63 times as of June 2022, providing medium-term revenue stability despite some slow-moving orders (INR 20 Cr with no progress).
Logistics & Distribution
Distribution and other expenses stood at INR 23.60 Cr in H1 FY26, up from INR 10.41 Cr in H1 FY25. These costs are significant for transporting heavy equipment to diverse project sites.
Strategic Growth
Expected Growth Rate
45-50%
Growth Strategy
Growth is pursued through selective bidding for high-margin projects, refusing low-margin contracts of INR 100-200 Cr. The company is also diversifying geographically by expanding into states like Haryana to reduce its reliance on Gujarat and targeting departments with faster internal billing processes.
Products & Services
SITC (Supply, Installation, Testing, and Commissioning) services and EPC (Engineering, Procurement, and Construction) projects for power transmission, roads, and buildings.
Brand Portfolio
HEC Infra Projects Limited.
Market Expansion
Actively exploring and working in states beyond Gujarat, such as Haryana, to diversify the revenue base and mitigate regional concentration risks.
External Factors
Industry Trends
The EPC sector is highly fragmented and competitive. Trends show a shift toward 'over the time' revenue recognition (Ind-AS 115) and a focus on technical qualifications like 'Class A' registrations to filter competition.
Competitive Landscape
Highly fragmented and competitive construction sector with tender-driven operations, requiring technical expertise to maintain a niche in SITC services.
Competitive Moat
The moat consists of experienced technical promoters and 'Class A' registrations with the Gujarat Government and CPWD. This is sustainable as long as the company maintains its technical standards and promoter support through unsecured loans.
Macro Economic Sensitivity
High sensitivity to government infrastructure spending and GDP growth. A reduction in infrastructure investment would lead to fewer project opportunities and increased competition.
Consumer Behavior
Not applicable as the company operates in the B2B and B2G infrastructure segments.
Geopolitical Risks
Not disclosed, but global supply chain issues could impact the procurement of specialized electrical components for SITC projects.
Regulatory & Governance
Industry Regulations
Operations are governed by the Roads and Building Department of the Government of Gujarat and CPWD standards. Maintaining 'Class A' and 'Class-1' registrations is critical for bidding eligibility.
Taxation Policy Impact
The effective tax rate for H1 FY26 was approximately 25.6% (INR 1.23 Cr tax on INR 4.79 Cr PBT).
Risk Analysis
Key Uncertainties
The primary uncertainty is the working capital cycle; a gross operating cycle above 180 days and delayed billing from clients like GETCO (1-1.5 years for final 10%) significantly strain liquidity.
Geographic Concentration Risk
Major revenue is concentrated in Gujarat, exposing the company to regional economic and site-specific risks.
Third Party Dependencies
Dependency on government departments for project approvals and final billing, which can delay cash flows by over a year.
Technology Obsolescence Risk
Not disclosed, but the company must keep pace with evolving power infrastructure technologies to maintain its SITC service edge.
Credit & Counterparty Risk
Exposure to government entities like GETCO provides high credit quality but poor payment velocity, impacting the company's debt coverage indicators (Total Debt/GCA target below 5 times).