Ace investor Mukul Agrawal has taken a meaningful position in Hindustan Construction Company (HCC), acquiring 4,40,19,921 shares—translating to roughly 1.68% of the company’s equity, as of the latest shareholding data of Q3 FY26. Mukul Agraval’s holding is valued at around INR 80 crore.
Why the Timing Matters
The entry of Mukul Agrawal in HCC is notable not just for the stake size, but for its timing. The company has been actively reshaping its balance sheet through a large rights issue, while simultaneously highlighting a robust bid pipeline and new order momentum.
Rights Issue: Oversubscribed 2x, Reinforcing Balance-Sheet Narrative
HCC launched an ~INR 1,000 crore rights issue—priced at INR 12.5 per share with a record date of 5 December 2025. The rights issue saw a two-fold subscription, receiving applications worth INR 2,008 crore against an issue size of INR 999.99 crore.
Management framed the response as supportive of deleveraging and longer-term growth—an important point in a sector where leverage and working capital discipline often determine valuation outcomes.
HCC Q2 FY26 Snapshot: Softer YoY Numbers, But Double-Digit Operating Margins
Hindustan Construction Company reported a mixed quarter on a year-on-year basis:
Standalone financial highlights (Q2 FY26 vs Q2 FY25):
- Revenue from operations: INR 957.8 crore vs INR 1,203.0 crore
- Net profit: INR 36.7 crore vs INR 50.2 crore
- EBITDA margin (ex other income): 16.1% vs 17.8%
While topline and profit declined YoY, the company’s operating margin remained in a workable range for an EPC-heavy infrastructure contractor—provided execution and cash conversion hold up.
Order Book and Pipeline: Visibility Remains the Core Pitch
HCC highlighted a diversified order backlog of INR 13,152 crore, with the mix skewed toward transportation and hydro projects:
- Transport ~63%
- Hydro ~22%
- Nuclear & Buildings ~3%
- Water ~12%
The company also disclosed:
- Orders secured totaling INR 2,770 crore (including two Patna Metro packages and a Hindalco aluminium smelter expansion), plus L1 status in a ~INR 840 crore project.
- Bids submitted and under evaluation: INR 29,581 crore
- Bid pipeline: ~INR 57,000 crore
For the market, this “forward visibility” matters because HCC’s re-rating potential depends heavily on how quickly backlog converts into billed revenue and, more importantly, operating cash flows.
Deleveraging: Concrete Repayments Outlined
HCC also emphasized deleveraging progress:
- INR 339 crore prepayments in FY26 (to date)
- An additional ~INR 450 crore repayment expected in Q3
- Total debt as of 31 October 2025: ~INR 3,050 crore
Read Also: List of Top Construction Companies in India
Fresh Catalyst: ₹901 Cr Railway Tunnel Order (JV)
In December 2025, HCC announced that its JV (HCC–VCCL, with HCC holding 65%) secured a INR 901 crore railway contract from Northeast Frontier Railway for a key tunnel on the Tupul–Imphal new broad-gauge line. The scope includes a 3.5 km main tunnel alongside design, engineering, and commissioning activities.
Market coverage noted the stock reaction around the order news and near-term momentum in sessions following related developments.
Final Words
HCC has been trading around the ~INR 18 range, and reports indicate the stock remained materially lower on a year-to-date basis around late December 2025. That context makes Agrawal’s entry look like a conviction bet on a turnaround in balance-sheet strength and earnings/CF quality—rather than a momentum chase.
However, infrastructure EPC investing is rarely linear. Execution slippages, working-capital absorption, claims realisation, and project concentration risks can quickly change the near-term outlook.
Bottom Line
Mukul Agrawal’s ~1.7% stake in HCC is a strong market signal—especially when viewed alongside HCC’s two-fold oversubscribed rights issue, stated deleveraging roadmap, and a visible pipeline of bids and orders. Yet the durability of this narrative will depend on the fundamentals that matter most in EPC: execution, cash flows, and balance-sheet outcomes—not just announcements.
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