HEC Infra Projects Powers Ahead with Strong Q2 FY26 Performance and Strategic Expansion

HEC Infra Projects Limited, a premier EPC turnkey contractor, reported robust financial results for Q2 FY26, showcasing significant year-on-year growth and strategic advancements. The company's performance reflects the strength of its diversified business model and a disciplined project management approach, reinforcing its position as a trusted partner in India's rapidly expanding infrastructure sector. With a keen eye on profitability and operational efficiency, HEC Infra continues to navigate market dynamics while capitalizing on emerging opportunities.

For the second quarter of fiscal year 2026, HEC Infra Projects Limited achieved a total income of ₹40.82 crore, marking an impressive 76.28% year-on-year growth from ₹20.74 crore in Q2 FY25. This substantial increase was driven by improved execution across multiple projects and consistent order inflows. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at ₹3.86 crore, translating into a healthy margin of 9.45%. Net Profit after Tax (PAT) also saw a significant surge, rising by 72.88% year-on-year to ₹2.23 crore from ₹1.23 crore in the corresponding quarter of the previous fiscal year. This strong financial performance underscores the management's focus on profitable growth, cost efficiency, and timely project delivery.

HEC Infra's diversified EPC verticals played a crucial role in its robust performance. The company's revenue streams are broadly distributed across key infrastructure segments. Underground & Overhead Transmission Lines contributed a significant 66% to the revenue, highlighting the company's strong presence in power transmission. Water Management Systems accounted for 22%, reflecting growing opportunities in critical water infrastructure projects. Power Distribution Substations contributed 18%, while Industrial Electrification & Automation and Lighting & ELV Systems contributed 4% and 2% respectively. This balanced portfolio mitigates risk and ensures stable growth across various infrastructure domains.

Strategic Growth and Diversification

During the quarter, HEC Infra continued to strengthen its order book, securing five new projects valued at ₹62.53 crore. These new wins reflect the company's growing credibility as a trusted EPC partner across diverse infrastructure domains. A notable achievement was the ₹7.15 crore order from Advait Energy Transitions Limited for a battery energy storage system (BESS), marking HEC Infra's first major foray into this emerging and strategically important segment. Additionally, the company secured multiple municipal corporation projects from Ahmedabad Municipal Corporation, aggregating over ₹26 crore, covering water distribution, augmentation, upgradation, and new construction across various zones of Ahmedabad.

Management's strategic outlook is anchored on three key priorities: selective project participation focusing on short-to-medium tenure projects with healthy margins and faster cash conversion cycles; expansion into new opportunity areas like battery energy storage systems and solar integrated power infrastructure; and strengthening water infrastructure capabilities to meet increasing demand under initiatives like the Jal Jeevan Mission. The company is also actively exploring potential backward integration opportunities through selective acquisitions of transformer manufacturers to enhance its value chain and improve margins.

Operational Excellence and Market Alignment

HEC Infra's integrated delivery model, encompassing design, procurement, installation, and commissioning, provides strong control over quality, timelines, and cost structures. This operational excellence is crucial for executing complex and large-scale assignments efficiently. The company's proven expertise, financial stability, and diversified portfolio position it well to capture multi-year opportunities arising from government schemes like the Revamped Distribution Sector Scheme (RDSS), Green Hydrogen Mission, and PM-KUSUM.

The Indian power sector is undergoing a significant transformation, targeting a 500 GW non-fossil grid by 2030 and witnessing substantial investments in renewable energy. HEC Infra is strategically aligned with these national initiatives, actively bidding for projects under various central and state electrification programs. The company's proactive approach to anticipating sector trends, such as the likely compulsion of BESS for solar and wind projects, demonstrates its thought leadership and commitment to sustainable growth.

Outlook and Investor Confidence

Looking ahead, HEC Infra Projects anticipates continued momentum, backed by a robust order book and efficient execution. The management expects to maintain profitability percentages and projects an overall increase in top-line revenue for the current fiscal year, with this growth trajectory expected to be sustained for the next three to four years. While acknowledging challenges such as working capital management and historical government payment delays, the company has demonstrated a willingness to course-correct, such as exiting less profitable project types with certain clients.

HEC Infra's commitment to building a stronger, more sustainable business focused on growth, reliability, and long-term value creation for all stakeholders remains steadfast. The company's diversified revenue streams, strong execution track record, and strategic alignment with India's infrastructure growth story instill confidence in its future prospects.