HEC Infra Projects Surges 7% After Securing ₹48 Cr Switchyard Contract from BPCL

Synopsis: A fresh Rs. 48 crore work order from Bharat Petroleum Corporation has pushed an Ahmedabad-based electrical EPC contractor’s shares higher, marking its third significant order win in under a month and adding meaningfully to a revenue base that stood at Rs. 176 crore for the year just ended.

Shares of an Ahmedabad-based electro-mechanical EPC contractor extended their recent run after the company disclosed a fresh work order under Regulation 30 of the SEBI Listing Regulations. The order, from Bharat Petroleum Corporation Limited, relates to a 66 kV switchyard package tied to the capacity augmentation of the Vadinar-Bina crude pipeline and is to be executed over nine months.

With a market capitalisation of Rs. 147.41 crore, the shares of HEC Infra Projects Limited were trading at Rs. 137.88 after the announcement, up 7.11 percent from its previous closing price of Rs. 128.73 apiece. The stock is trading at a P/E of roughly 11.09 times trailing earnings.

The Rs. 48 crore contract covers design, engineering, supply, erection, testing, and commissioning work, standard EPC scope for a switchyard package. Neither the promoters nor the promoter group hold any interest in BPCL, and the order sits outside related-party transaction territory. Retail investors should note one inconsistency in the filing itself: the covering letter describes the project as a 66 kV switchyard for the Vadinar-Bina pipeline augmentation, while the attached annexure lists project terms referencing an unrelated food park location in Mehsana, an apparent copy-paste artefact from a previous filing template rather than a change in the actual scope. The core commercial facts, the client, the contract value, and the execution timeline, are consistent and can be relied upon.

What makes this order notable is not its size in isolation but its place in a fast-accumulating sequence. This is HEC Infra’s third significant order disclosure in under four weeks: a Rs. 44.87 crore transmission project from Powergrid’s Bikaner IV package on June 6, a Rs. 34 crore work order from Stellar Manufacturers on June 16, and now this Rs. 48 crore BPCL contract. Added together, these three orders alone total close to Rs. 127 crore, roughly 72 percent of the company’s entire FY26 revenue of Rs. 176 crore, landing within a single month.

For a company of this scale, that is a substantial jump in near-term revenue visibility, though investors should also recognise that translating order wins into executed, billed, and collected revenue takes time and execution capacity that a 45-employee company will need to scale carefully.

What the Numbers Say

The order momentum arrives alongside a genuine improvement in the underlying business. FY26 revenue grew 58 percent to Rs. 176 crore from Rs. 112 crore, and operating margin jumped to 17.94 percent in the March 2026 quarter alone, sharply ahead of the 8-9 percent range the company had been running through most of FY25 and FY26’s earlier quarters. Net profit for the full year came in at Rs. 13 crore against Rs. 9 crore in FY25, continuing a run where profit has compounded at 110 percent annually over five years, albeit off a small base.

Working capital, historically the company’s weak spot, has also improved. Debtor days fell from 155 in FY25 to 55 in FY26, and working capital days dropped from 44 to roughly 40, both meaningful for a contractor where cash collection from PSU clients can lag execution by many months. That said, cash flow from operations remains a point worth watching: FY25 saw a sharp negative swing to minus Rs. 26 crore before recovering to a modest positive Rs. 3 crore in FY26, converting only about 30 percent of operating profit into cash. With three large new orders now layered on top of an already growing order book, working capital strain could resurface if execution outpaces collections, a pattern worth tracking in the next couple of quarterly results rather than assuming away.

Return on equity and return on capital employed both stand at roughly 21 percent for the year, reasonably strong for a small-cap EPC name, and the stock’s 18.07 percent decline over the past twelve months, despite this profit growth, suggests the market had been pricing in more caution about execution and cash conversion than the recent order flow now supports.

Business Overview

Incorporated in 2005 and based in Ahmedabad, HEC Infra Projects is a Class A EPC contractor registered with Gujarat’s Roads and Buildings Department and a Class-1 contractor with the Central Public Works Department, working across transmission lines, substations, switchyards, solar plants, and industrial electrification for clients spanning GETCO, Powergrid, Tata Power Solar, and now BPCL. For the year ended March 2026, the company reported standalone revenue of Rs. 176 crore and net profit of Rs. 13 crore, with the March quarter alone contributing Rs. 50.73 crore of sales and Rs. 6.10 crore of net profit.

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