HEC Infra Projects Q1FY26 Profit Rises 59.4% YoY to ₹133.12 Lakh; AGM Scheduled for September 18

Ahmedabad, August 1, 2025 – HEC Infra Projects Ltd (NSE: HECPROJECT) has reported robust financial numbers for Q1FY26. The highlights of the quarterly performance include an increase in standalone profit by 59.4% year on year. However, the numbers on a quarter-to-quarter basis showed a decline in profitability and revenues, largely due to the seasonality effect.

The company also finalised the date of the 20th AGM and informed about a few key statutory appointments.

Financial Highlights (Standalone)

In Q1 FY26, the company reported a 54.8% YoY rise in revenue to ₹2,790.73 lakh and a 52.9% increase in total income. EBITDA surged 80.9% to ₹260.97 lakh, and net profit rose 59.4% to ₹133.12 lakh, with EPS improving to ₹1.23. However, on a QoQ basis, revenue, EBITDA, and net profit declined sharply by 40%, 71%, and 76.5% respectively, reflecting a sequential slowdown from the strong Q4 FY25 base. The QoQ decline in revenue and profit was expected due to seasonality in EPC project execution. However, on a YoY basis, the company demonstrated substantial growth across key metrics, backed by robust topline expansion and effective cost control.

Key Expenses Breakdown (Q1FY26)

In Q1 FY26, stock-in-trade purchases declined 3.3% YoY to ₹1,391.78 lakh, while employee expenses rose 19.5% to ₹96.49 lakh. Finance costs surged 193.9% to ₹72.60 lakh, and depreciation increased 36.6% to ₹14.16 lakh. Other expenses jumped 300% to ₹1,571.49 lakh. Importantly, inventory changes contributed positively with ₹529.37 lakh in working capital, reversing last year’s reduction.

Corporate Announcements and Auditor’s Appointment

HEC Infra Projects has scheduled its 20th Annual General Meeting (AGM) for September 18, 2025, at 12:00 noon via video conferencing. Remote e-voting will be open from September 15 to 17, with a cut-off date of September 11.

The company also announced key auditor appointments, including M/s. KDN & Associates LLP as the new statutory auditor (FY26–FY30), M/s. Nishant Pandya & Associates as secretarial auditor (FY26–FY30), and M/s. P.H. Desai & Co. as cost auditor for FY26, pending shareholder approval.

Management Commentary

Gaurang P. Shah, Managing Director, stated, “Our YoY performance reflects continued momentum in our EPC business, despite sequential softness due to project phasing. We are focused on delivering sustainable value with improved execution, cost rationalization, and governance practices.”

Balance Sheet & Capital Structure

The company has a paid-up equity share capital of ₹1,083.82 lakh and reported an EPS of ₹1.23. It holds negative reserves of ₹4,229.72 lakh, excluding revaluation reserves. Notably, the company has zero debt, reflecting a strong balance sheet and disciplined financial management.

HEC Infra Stock Performance

The stock closed at ₹165.85 (2% higher than the previous day’s close). The trading volume remained quite low at 3400 shares. which is lower than the normal daily average. The P/E ratio of the company is 19.06 compared to the industrial average of 36.14. After today’s surge, the stock has moved upward by almost 35%.

Company Overview

HEC Infra Projects Ltd is a listed engineering consultancy and EPC contractor specialising in electro-mechanical infrastructure projects. The company is listed on NSE with the symbol HECPROJECT and operates primarily in India’s industrial and urban development sectors.

REF: https://nsearchives.nseindia.com/corporate/HECPROJECT_01082025151652_Outcome-01-08-2025.pdf

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