HCC’s Q1 margin trails peers as interest absorbs operating profit
Consolidated profit was supported by Rs 62.56 cr of other income, while the 10.53% operating margin lagged the Industrials peer median.
Filed 06 Aug 2026, 16:28 IST · after market close · Hindustan Construction Company Ltd (HCC)
Key takeaways
- HCC reported consolidated net profit of Rs 51.08 cr in Q1FY27, while other income of Rs 62.56 cr was a major contributor to pre-tax profit.
- Operating margin was 10.53%, 3.67 percentage points below the 14.2% median for 67 Industrials peers that had reported.
- Interest of Rs 86.84 cr absorbed much of the Rs 104.64 cr operating profit, leaving consolidated EPS at Rs 0.19.
Price around the results
Other income supported reported profit
Other income of Rs 62.56 cr was close to the Rs 74.4 cr consolidated profit before tax, making it a significant contributor to reported earnings. Interest of Rs 86.84 cr was also close to the Rs 104.64 cr operating profit, limiting the conversion of operating earnings into pre-tax profit.
Operating margin trails 67 Industrials peers
HCC’s consolidated operating margin of 10.53% was 3.67 percentage points below the 14.2% median among 67 Industrials companies that had reported the quarter. The margin ranks 21st from the bottom in that peer set, pointing to weaker operating conversion than the sector midpoint.
Results came after the market closed
HCC filed its consolidated Q1FY27 results at 16:28 IST on 6 August 2026, after market close. The filing provides no same-day share-price reaction to assess against the stock’s past results.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹993 cr |
| Other income | ₹63 cr |
| Expenses | ₹889 cr |
| Operating profit | ₹105 cr |
| Operating margin (%) | 10.53% |
| Interest | ₹87 cr |
| Depreciation | ₹6 cr |
| Profit before tax | ₹74 cr |
| Tax | ₹23 cr |
| Net profit | ₹51 cr |
| EPS (₹) | ₹0.19 |
Operating margin of 10.53% compares with a Industrials sector median of 14.20% across 67 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.69% | -4.42% |
Volume on the results session was 2.20× its 20-day average.
What to watch
- Whether consolidated operating margin moves above 10.53%.
- Whether interest remains below the Rs 104.64 cr operating profit.
- Whether other income remains close to the Rs 74.4 cr pre-tax profit.