This article first appeared on GuruFocus .
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Revenue:INR40.82 crore, a year-on-year growth of 96.84%.
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EBITDA:INR3.86 crore, with a margin of 9.45%.
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Net Profit:INR2.33 crore, up by 82.10% year on year.
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New Projects:Five new projects worth INR62.53 crore added to the order book.
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Key Contracts:INR28.75 crore EPC contract from BGP Infra Private Limited and INR7.15 crore order from Advait Energy Transitions Limited.
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Release Date: November 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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HEC Infra Projects Ltd ( NSE:HECPROJECT ) reported a significant year-on-year revenue growth of 96.84% for Q2 FY26, reaching INR40.82 crore.
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The company's net profit increased by 82.10% year-on-year, demonstrating strong financial performance.
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HEC Infra Projects Ltd secured five new projects worth INR62.53 crore, enhancing its order book and future revenue visibility.
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The company is diversifying into emerging sectors such as battery energy storage systems and solar integrated power infrastructure.
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HEC Infra Projects Ltd is actively exploring backward integration opportunities to enhance its value chain and improve margins.
Negative Points
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The company's loans and advances increased significantly from INR7 crore to INR30 crore, raising questions about working capital management.
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HEC Infra Projects Ltd faces challenges with delayed payments from government projects, impacting cash flow.
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There is a high concentration of revenue from Gujarat, indicating potential geographic risk.
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The company has a significant portion of its order book dependent on government contracts, which can be subject to bureaucratic delays.
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HEC Infra Projects Ltd's operating cash flow was significantly negative in FY25, raising concerns about liquidity management.
Q & A Highlights
Q: Can you clarify the significant increase in loans and advances from INR7 crore to INR30 crore? A: Rahul Shah, Executive Director: The advances are primarily for manufacturing electrical equipment for our clients, with a small portion going to subcontractors. These are not related party transactions, and as our turnover increases, so will our loans and advances proportionately.
Q: Are you still focusing on project margins over growth? A: Rahul Shah, Executive Director: Yes, we prioritize profitability over mere growth. We are selective about projects, focusing on those with healthy margins rather than just increasing capacity without profitability.
Q: How has execution efficiency evolved between Q1 and Q2, and what operational improvements were visible? A: Rahul Shah, Executive Director: No major structural changes were made between Q1 and Q2. We continue to refine processes, such as upgrading accounting systems and changing auditors for transparency. Improvements are ongoing, with better financial negotiations expected in Q3.
Q: Is there any working capital distress given the negative operating cash flow and high current assets? A: Rahul Shah, Executive Director: There is no distress. Payment delays at quarter-end can skew figures, but we have no major debtors over 180 days. Government processes can delay payments, but we are focusing on departments with faster payment cycles.
Q: How do you plan to ensure business diversification and not over-rely on government revenue? A: Rahul Shah, Executive Director: We aim for a 50/50 balance between government and private orders. Our order book has increased private sector orders, reducing dependency on government revenue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
