HCC standalone Q2 profit held flat as EBITDA fell 29.2%

HCC reported standalone profit after tax of Rs 36.8 crore in Q2 FY27, compared with Rs 36.7 crore a year earlier, despite EBITDA excluding other income falling 29.2% to Rs 109.2 crore. The quarter included lower finance cost and tax expense, while consolidated profit after tax declined 52.8% to Rs 22.6 crore.

Why did HCC's standalone profit stay flat in Q2 FY27?

HCC's standalone profit stayed broadly flat because lower finance cost, lower tax expense and higher other income were reported alongside the operating decline. Profit after tax was Rs 36.8 crore in Q2 FY27, up 0.3% from Rs 36.7 crore in Q2 FY26. Profit before tax fell 11.9% to Rs 48.6 crore from Rs 55.1 crore, a smaller percentage decline than the 29.2% reduction in EBITDA excluding other income.

Finance cost declined 26.4% to Rs 82.6 crore from Rs 112.2 crore, while tax expense fell 36.0% to Rs 11.8 crore from Rs 18.4 crore. Other income increased 57.0% to Rs 27.9 crore from Rs 17.7 crore. Depreciation moved up to Rs 5.9 crore from Rs 4.6 crore, and total comprehensive income declined 3.9% to Rs 32.1 crore from Rs 33.4 crore.

What drove HCC's standalone EBITDA decline?

HCC's standalone EBITDA declined as income from operations fell faster than construction and other expenses, while employee cost increased. Income from operations was Rs 895.8 crore in Q2 FY27, down 6.5% from Rs 957.8 crore in Q2 FY26. Construction cost, including material, and other expenses fell 3.4% to Rs 697 crore from Rs 721.7 crore, but employee cost increased 9.3% to Rs 89.5 crore from Rs 81.9 crore.

EBITDA excluding other income was Rs 109.2 crore, compared with Rs 154.2 crore a year earlier, and the related margin contracted by 3.9 percentage points to 12.2% from 16.1%. Total income fell 5.3% to Rs 923.7 crore from Rs 975.5 crore. Other income rose to Rs 27.9 crore, but it is excluded from HCC's reported EBITDA measure.

The sequential movement differed from the year-on-year comparison. Income from operations declined from Rs 981.7 crore in Q1 FY27 to Rs 895.8 crore in Q2 FY27, but EBITDA excluding other income increased from Rs 104.5 crore to Rs 109.2 crore. The EBITDA margin rose from 10.6% in Q1 FY27 to 12.2% in Q2 FY27, while total income fell from Rs 1,012.7 crore to Rs 923.7 crore.

Why did HCC's consolidated profit fall 52.8%?

HCC's consolidated profit fell 52.8% because profit before tax declined and the tax line changed from a credit in Q2 FY26 to an expense in Q2 FY27. Consolidated profit after tax was Rs 22.6 crore, down from Rs 47.8 crore, while profit before tax declined 16.7% to Rs 35.2 crore from Rs 42.3 crore. Consolidated EBITDA excluding other income declined 30.4% to Rs 102.8 crore from Rs 147.8 crore.

The consolidated tax line was an expense of Rs 12.7 crore in Q2 FY27, compared with a tax credit of Rs 5.5 crore in Q2 FY26. Finance cost fell 25.4% to Rs 89.5 crore from Rs 119.9 crore. HCC also recorded a Rs 0.1 crore share of profit from associates and joint ventures, compared with a Rs 2.2 crore loss in the corresponding quarter.

Consolidated total comprehensive income after tax was a loss of Rs 9.3 crore, compared with income of Rs 48.6 crore in Q2 FY26. That movement included other comprehensive loss of Rs 31.8 crore in Q2 FY27, against other comprehensive income of Rs 0.8 crore a year earlier. The comprehensive result therefore moved below the Rs 22.6 crore consolidated profit after tax reported for the quarter.

How did HCC's standalone and consolidated results differ?

HCC's consolidated operating income was close to its standalone income, but consolidated EBITDA, margin and profit after tax were lower. Consolidated income from operations was Rs 896.8 crore in Q2 FY27, compared with standalone income from operations of Rs 895.8 crore. Consolidated EBITDA excluding other income was Rs 102.8 crore, Rs 6.4 crore below the standalone figure of Rs 109.2 crore.

The consolidated EBITDA margin was 11.5%, compared with 12.2% on a standalone basis. Consolidated finance cost was Rs 89.5 crore, or Rs 6.9 crore above standalone finance cost of Rs 82.6 crore. Consolidated tax expense was Rs 12.7 crore against Rs 11.8 crore standalone, and consolidated profit after tax of Rs 22.6 crore was Rs 14.2 crore below standalone profit after tax of Rs 36.8 crore.

The sequential consolidated comparison also showed a profit decline despite a relatively stable operating result. Consolidated profit after tax fell from Rs 51.1 crore in Q1 FY27 to Rs 22.6 crore in Q2 FY27, while profit before tax declined from Rs 74.4 crore to Rs 35.2 crore. EBITDA excluding other income was Rs 102.8 crore versus Rs 104.6 crore, whereas other income declined from Rs 62.1 crore to Rs 28.3 crore and the EBITDA margin increased from 10.5% to 11.5%.

Conclusion

HCC's Q2 FY27 results show a divergence between the standalone and consolidated outcomes. Standalone profit after tax remained at Rs 36.8 crore as finance cost fell to Rs 82.6 crore and tax expense fell to Rs 11.8 crore, despite a Rs 45 crore year-on-year decline in EBITDA excluding other income. Consolidated profit after tax fell to Rs 22.6 crore, with the tax position changing from a Rs 5.5 crore credit to a Rs 12.7 crore expense.

The next disclosed operating milestones are the progress of the Hindalco PS & PSS work, where 23 of 181 pot shells had been fabricated after prototype approval, and the Parwan and Salal projects. HCC reported initial filling of the Parwan Dam reservoir and said three dredgers had been mobilised, tested and commissioned at Salal Dam as of its November 5, 2026 presentation.