HCC net profit falls 55.83% QoQ as other income drops
Expenses fell faster than revenue, lifting operating margin 0.93 percentage points, but higher tax and interest amplified the earnings decline.
Filed 05 Nov 2026, 17:06 IST · after market close · Hindustan Construction Company Ltd (HCC)
Key takeaways
- HCC's consolidated net profit fell 55.83% QoQ to Rs 22.56 cr as other income dropped 54.62% and interest rose 3.03%.
- Operating margin improved 0.93 percentage points to 11.46% because expenses fell 10.66%, faster than revenue's 9.72% decline.
- Other income made up 80.56% of pre-tax profit, while the tax rate rose 4.64 percentage points to 35.98%.
Price around the results
Better cost control could not prevent the profit decline
HCC's consolidated revenue fell 9.72% QoQ, but expenses fell faster at 10.66%, limiting the operating-profit decline to 1.79% and lifting operating margin by 0.93 percentage points. Pre-tax profit still dropped 52.63% and net profit fell 55.83%, as other income declined sharply and interest costs increased. EPS fell 52.63% to Rs 0.09.
Other income remained central to reported earnings
Other income fell 54.62% QoQ and accounted for 80.56% of pre-tax profit, making reported earnings materially dependent on non-operating income. Interest rose 3.03%, while the tax rate increased 4.64 percentage points to 35.98%. The combination reduced the benefit from the improved operating margin.
Operating margin moved closer to the Industrials median
Operating margin rose from 10.53% in Q1FY27 to 11.46% in Q2FY27, marking a sequential improvement rather than another decline. It was 0.04 percentage points below the 11.50% median among 178 Industrials peers that had reported the quarter.
Results were filed after market close
The consolidated results were filed after market close on 05 Nov 2026 at 17:06 IST. The release-day read therefore does not include a post-results stock reaction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹897 cr | ₹993 cr | -9.72% |
| Other income | ₹28 cr | ₹63 cr | -54.62% |
| Expenses | ₹794 cr | ₹889 cr | -10.66% |
| Operating profit | ₹103 cr | ₹105 cr | -1.79% |
| Operating margin (%) | 11.46% | 10.53% | — |
| Interest | ₹89 cr | ₹87 cr | +3.03% |
| Depreciation | ₹6 cr | ₹6 cr | +8.22% |
| Profit before tax | ₹35 cr | ₹74 cr | -52.63% |
| Tax | ₹13 cr | ₹23 cr | -45.63% |
| Net profit | ₹23 cr | ₹51 cr | -55.83% |
| EPS (₹) | ₹0.09 | ₹0.19 | -52.63% |
Operating margin of 11.46% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 11.46% after its Q1FY27 improvement.
- Whether other income's contribution falls from 80.56% of pre-tax profit.
- Whether interest reverses its 3.03% QoQ increase.