HCC Ltd targets near-doubling of order book by FY27-end

HCC Ltd is targeting nearly doubling its ₹12,901 crore order book by the end of FY27, management said on November 6, 2026, supported by more than ₹34,805 crore of bids under evaluation. Management said delayed hydropower awards largely reflect client preparations and clearances before contracts are issued.

Can HCC nearly double its order book by FY27-end?

HCC said nearly doubling its ₹12,901 crore order book by FY27-end is a management target, rather than an order award already secured. Chief Financial Officer Rahul Shukla said the company was focused on rebuilding the backlog after a period of stagnation that had constrained revenue growth. Chief Operating Officer Santosh Rai confirmed that the target referred to the end of the financial year, not the end of calendar 2026.

The outcome depends on tender conversion across HCC's pipeline. In the first half of FY27, HCC secured orders worth ₹524 crore and was declared the lowest bidder, or L1, on bids worth ₹2,010 crore, with its share at ₹1,557 crore. It had also submitted more than 16 bids worth about ₹34,805 crore that were under evaluation, while its broader pipeline across sectors was close to ₹86,000 crore.

Why have HCC's hydropower awards been delayed?

HCC said hydropower awards have taken longer because clients need further project preparation and clearances before they can award contracts. Rai said some tenders had already been issued, but clients were still obtaining the relevant approvals. Management identified this process as the key reason for slower order-book conversion in the first half of FY27 and did not provide award dates for individual hydro projects.

Hydropower could account for a larger share of new awards because HCC has submitted more bids in that segment in recent months, management said. However, Rai said the expected additions would be a blend of hydropower and transport infrastructure. Vice Chairman and Managing Director Arjun Dhawan said the bids were diversified across HCC's core segments and declined to identify project-level opportunities or any single large contract.

What work supports HCC's existing order book?

HCC's ₹12,901 crore order book is led by transportation, including bridges, surface transport and underground metro projects, followed by hydropower, nuclear and water work. Maharashtra is the largest geographic contributor, followed by Bihar. At the Indore Metro project, both tunnel-boring machines had begun work on seven underground stations and 12 kilometres of tunnelling, while Patna Metro was in advanced design and equipment-mobilisation stages.

The hydropower portfolio includes projects at materially different execution stages. At the 1,000-megawatt Bhivpuri pumped-storage project for Tata Power, HCC said the powerhouse and main access tunnel were complete. Vishnugad PipalKoti was about 80% complete, with 830 metres of tunnel-boring-machine work remaining in the head race tunnel and the dam nearly 80% complete. At Parwan Dam, safety checks and reservoir-filling tests were complete, with ancillary work expected over the next three to four months.

How does the target relate to HCC's FY27 financial performance?

HCC linked a larger backlog to future revenue rather than an immediate Q2 FY27 recovery. The company reported standalone turnover of ₹923 crore in Q2 FY27, compared with ₹975 crore in the corresponding prior-year quarter, while standalone profit after tax was about ₹37 crore and broadly unchanged. Shukla said new order bookings would begin to feed into operating performance after the backlog was rebuilt.

Standalone earnings before interest, tax, depreciation and amortisation, or EBITDA, were ₹109 crore in Q2 FY27, while the EBITDA margin was 12.2%, against 16.1% in Q2 FY26. Shukla attributed quarterly margin movement to the mix and stage of construction work and said management expected a 13% to 14% long-term annual EBITDA margin. Consolidated turnover was ₹925 crore and consolidated profit after tax was about ₹23 crore; management said interest-accrual accounting effects at non-material subsidiaries should be addressed over a couple of quarters.

Conclusion

HCC's FY27 order-book objective rests on converting a large tender pipeline into awards, especially in hydropower and transport infrastructure. The company has a reported ₹12,901 crore backlog, ₹1,557 crore of L1 positions and more than ₹34,805 crore of bids under evaluation, but management described near-doubling as a target rather than a committed outcome.

The next indicators are awards from the submitted bids before FY27 ends and the pace of client clearances for hydropower contracts. Management also plans a further ₹108 crore debt prepayment by December 2026, after the ₹100 crore prepaid in Q2 FY27, while it expects about ₹350 crore of liability to be payable in March.