Hindustan Construction Company Limited — Credit Ratings, 04-07-2025: Credit Rating

Infomerics has reaffirmed Hindustan Construction Company’s credit ratings at IVR BBB-/Stable for its Non-Convertible Debentures (Rs. 700.50 Cr), Optionally Convertible Debentures (Rs. 701.90 Cr), and long-term/short-term bank facilities (totaling Rs. 7,425.50 Cr). The stable outlook reflects HCC’s extensive industry experience, strong order book providing 2.47x revenue visibility at Rs. 11,852 Cr, and improved operational performance with EBITDA margin rising to 19.43% in FY25. Fund infusions of Rs. 950 Cr in FY25 have strengthened liquidity and tangible net worth increased to Rs. 1,711 Cr. However, ratings remain constrained by high debt levels of Rs. 2,847 Cr, significant debt repayments due (~Rs. 1,000 Cr in FY26), elongated receivables (~218 days), and a competitive, fragmented industry. Timely fund raising and arbitration award realization will be critical to manage repayment obligations and liquidity.