Infra Stock Jumps After Securing ₹577 Cr Order from Northeast Frontier Railway

Synopsis: Hindustan Construction Company Ltd won a ₹577.89 crore Northeast Frontier Railway contract with VCCL (65% HCC share) to build four tunnels, cut-and-cover sections, and railway embankments between Piphema and Zubza, enhancing rail connectivity and socio-economic growth in Nagaland.

The shares of the Small-cap, specializing in the engineering and construction of large-scale, technically complex infrastructure projects, primarily within India, are in focus after securing a Rail Link Project worth Rs. 577.89 Crores.

With a market capitalization of Rs. 5,231.08 Crores on the Day’s Trade, the shares of Hindustan Construction Company Ltd rose by 1.3 percent, reaching a high of Rs. 20.40 compared to its previous close of Rs. 20.14.

What Happened

Hindustan Construction Company Ltd, engaged in the engineering and construction of large-scale, technically complex infrastructure projects, primarily within India, has won a railway contract worth Rs. 577.89 crore from the Northeast Frontier Railway. The project will be executed through a joint venture with VCCL, where HCC holds a 65% share.

The work includes completing four key tunnels, Tunnel No. 9 (600 m), Tunnel No. 11 (350 m), Tunnel No. 13 (400 m), and Tunnel No. 16 (600 m), and performing cut-and-cover construction. It also involves earthwork for railway embankments and cuts, along with protective and support structures between Piphema and Zubza on the Dimapur-Kohima New BG Line.

This project is important for improving rail connectivity in the Northeast, providing better access to remote and hilly areas, and supporting socio-economic growth in Nagaland and nearby regions.

Q3 Results

Its Revenue from operations fell by 8 percent YoY from Rs. 1,006.81 Crores in Q3FY25 to Rs. 925.32 Crores in Q3FY26, and it declined by 3.6 percent QoQ from Rs. 960.74 Crores in Q2FY26 to Rs. 925.32 Crores in Q3FY26.

Its Net loss YoY from Rs. 38.92 Crores in Q3FY25 turned to a profit of Rs. 8.07 Crores in Q3FY26, and on a QoQ basis, it declined by 83 percent from Rs. 47.78 Crores in Q2FY26 to Rs. 8.07 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 0.03, compared to Rs. 0.18 in the previous quarter.

Key Highlights of Q3

HCC has secured two orders worth a total of Rs.1,478 crore in joint ventures from the Northern Frontier Railways, holding a 65% stake. The company was also the lowest bidder for projects totaling Rs. 2,675 crore (HCC share: Rs. 1,517 crore).

Bids totaling Rs. 35,765 crore (HCC share: Rs. 31,611 crore) have been submitted and are under evaluation, while the overall robust bid pipeline stands at around Rs. 53,820 crore, highlighting strong business momentum. Additionally, HCC’s Rs. 1,000 crore Rights Issue was oversubscribed at nearly 200%, demonstrating strong investor confidence.

Orderbook

HCC has a diversified and robust order book with a total backlog of Rs. 13,148 crore. The business is led by Transport projects (65%), followed by Hydro (19%), Water (12%), and Nuclear & Buildings (4%).

HCC is a leading Indian infrastructure developer headquartered in Mumbai, with nearly 100 years of engineering heritage. The company focuses on developing and building responsible, next-generation infrastructure and specializes in complex, landmark projects across transportation, power, and water sectors.

The company has executed many of India’s landmark infrastructure projects, including 26% of the country’s hydro power and 60% of its nuclear power generation capacities. The company has also built over 4,036 lane km of expressways and highways, more than 402 km of complex tunnels, and 403 bridges. Today, HCC continues to serve the transportation, power, and water infrastructure sectors.

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