HCC in JV with VCCL wins ₹901 Cr railways tunnel project; Shares jump 3.4%

Synopsis: The shares of the company surged by 3.5 percent after it reported its Joint Venture with Northeast Frontier Railway secured a construction order worth Rs. 901 crore, which is a part of the ongoing expansion and modernisation of India’s railway network.

The shares of this company involved in engineering and construction of infrastructure projects such as dams, tunnels, bridges, hydro, nuclear & thermal power plants, and industrial buildings across the country are in focus after announcement of Rs. 901 crore JV.

With the market capitalization of Rs. 4,846.02 crore, Hindustan Construction Company Ltd’s share on Friday made a day high of Rs. 18.64 per share, up by 3.4 percent from its previous day’s close price of Rs. 18.01 per share. It has delivered a return of 164.38 percent over a period of five years.

What happened

Hindustan Construction Company Limited (HCC), in a joint venture with VCCL in which HCC holds a 65% stake, has secured a Rs. 901 crore contract from the Northeast Frontier Railway (NFR) for constructing the New Tunnel 28 on the Tupul–Imphal Broad Gauge railway line. 

The project involves building a 3.5 km main tunnel along with extensive design, engineering, and commissioning responsibilities. It includes the development of a broad-gauge ballast-less track system, installation of tunnel ventilation and electro-mechanical works, and the setup of approach roads and related infrastructure.

This will add to the company’s robust order book  of Rs. 13,152 crore as of Q2 FY26, with order segment break up of 63 percent from transport, 22 percent from hydro, 12 percent from water and rest of it from nuclear & building segment.

About the company

Incorporated in 1926, Hindustan Construction Company Limited is the flagship company of Hindustan Construction Company Group and is involved in engineering and construction of infrastructure projects such as dams, tunnels, bridges, hydro,nuclear and thermal power plants, expressways and roads, marine works, water supply, irrigation systems and industrial buildings across the country.

Financial Highlights: The revenue from operations declined by 32 percent to Rs. 961 crore in Q2 FY26 from Rs. 1,407 crore in Q2 FY25. EBIT declined by 40 percent to Rs. 146  crore in Q2 FY26 from Rs.242 crore in Q2 FY25, Accompanied by net profit of Rs. 47.8  crore and EPS of Rs. 0.18 per share in Q2 FY26.

Written by Gourav Pratap SIngh

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