HEC Infra Projects September profit flat as revenue rises

HEC Infra Projects Limited reported consolidated profit of Rs 2.24 crore for the quarter ended 30 September 2026, virtually unchanged from Rs 2.23 crore a year earlier, although revenue from operations rose 8% to Rs 43.64 crore. Higher inventory-related expense and finance costs largely absorbed the increase in sales.

What were HEC Infra Projects' September-quarter results?

HEC Infra Projects recorded Rs 43.64 crore of revenue from operations in the September 2026 quarter, compared with Rs 40.50 crore in the September 2025 quarter and Rs 31.12 crore in the preceding June 2026 quarter. Total income, including other income, reached Rs 43.88 crore, up from Rs 40.82 crore year on year, while other income declined to Rs 24.84 lakh from Rs 32.45 lakh.

Consolidated profit before tax was Rs 3.05 crore, compared with Rs 3.05 crore in the corresponding quarter a year earlier. Profit after tax rose by Rs 1.01 lakh to Rs 2.24 crore from Rs 2.23 crore. Basic and diluted earnings per equity share were Rs 2.07, against Rs 2.06 in the September 2025 quarter and Rs 1.26 in the June 2026 quarter.

Why did HEC Infra Projects' profit remain flat despite higher revenue?

HEC Infra Projects' total expenses increased to Rs 40.83 crore from Rs 37.78 crore, closely matching the Rs 3.06 crore year-on-year increase in total income. The largest movement was in changes in inventories of finished goods, work-in-progress and stock-in-trade, which was an expense of Rs 4.20 crore in the September 2026 quarter compared with a Rs 1.43 crore credit in the year-earlier quarter.

Material consumption declined to Rs 25.99 crore from Rs 29.23 crore, and other project expenses fell to Rs 7.15 crore from Rs 7.67 crore. Those reductions were offset by the inventory movement, a rise in employee benefits expense to Rs 1.59 crore from Rs 1.29 crore, and finance costs of Rs 1.57 crore against Rs 88.10 lakh. The tax charge was nearly unchanged at Rs 80.96 lakh, compared with Rs 81.49 lakh, leaving post-tax profit broadly level.

How did HEC Infra Projects perform in the first half?

HEC Infra Projects generated first-half revenue from operations of Rs 74.75 crore for the period from 1 April to 30 September 2026, up from Rs 68.41 crore in the corresponding 2025 period. First-half total income increased to Rs 75.29 crore from Rs 68.74 crore, but profit before tax declined to Rs 4.62 crore from Rs 4.79 crore.

First-half profit after tax nevertheless increased to Rs 3.61 crore from Rs 3.56 crore because total tax expense fell to Rs 1.01 crore from Rs 1.23 crore. Finance costs were Rs 2.99 crore for the six months, versus Rs 1.61 crore a year earlier, while changes in inventories were an expense of Rs 10.92 crore after a Rs 6.72 crore credit in the prior-year half. HEC Infra Projects identifies EPC Electro-Mechanical Project as its only business segment, so no segment-wise revenue or profit split was reported.

What changed in HEC Infra Projects' balance sheet and cash flow?

HEC Infra Projects' total assets stood at Rs 152.67 crore on 30 September 2026, compared with Rs 135.48 crore on 31 March 2026. Trade receivables rose to Rs 42.75 crore from Rs 26.80 crore, while inventories fell to Rs 30.89 crore from Rs 41.82 crore. Cash and cash equivalents increased to Rs 2.05 crore from Rs 1.40 crore over the same period.

The balance sheet showed non-current borrowings of Rs 5.95 crore at 30 September, compared with nil at 31 March, and current borrowings increased to Rs 49.13 crore from Rs 44.38 crore. Net cash used in operating activities in the first half was Rs 4.91 crore, compared with an outflow of Rs 2.09 crore a year earlier, principally alongside a Rs 15.95 crore increase in trade receivables. Financing activities provided Rs 7.71 crore, including Rs 10.70 crore of borrowing proceeds and Rs 2.99 crore of interest paid.

How were HEC Infra Projects' results reviewed?

HEC Infra Projects' consolidated unaudited results were reviewed by the Audit Committee and approved by the Board of Directors on 2 November 2026. KDN & Associates LLP stated in its review report that nothing had come to its attention to indicate that the consolidated statement did not make the disclosures required under the Securities and Exchange Board of India listing regulations.

The consolidated figures include subsidiary Shivam Grid Solutions Private Limited, whose interim results were neither audited nor reviewed by KDN & Associates LLP or another auditor. Management-furnished results for that subsidiary showed nil revenue, nil profit after tax and nil total comprehensive income for the quarter ended 30 September 2026. The auditor said those interim results were not material to the group, and its conclusion was not modified.

Conclusion

HEC Infra Projects delivered an 8% rise in September-quarter revenue to Rs 43.64 crore, but profit after tax remained at Rs 2.24 crore as total expenses rose by nearly the same amount as income. In the first half, revenue rose to Rs 74.75 crore and profit after tax edged up to Rs 3.61 crore, although profit before tax declined and finance costs increased to Rs 2.99 crore.

The filing does not disclose a revenue target, formal outlook, operating plan or scheduled corporate event beyond the results approval on 2 November 2026. It therefore provides no company-stated target against which to assess developments after the 30 September 2026 reporting date.