Synopsis: HEC Infra Projects has secured an Rs. 18.67 crore EPC work order from Engineering Projects (India) Limited for HT/LT electrical works under the Flue Gas Desulphurisation (FGD) project at Ukai Thermal Power Station, further strengthening its presence in India’s power infrastructure sector.

India continues to invest heavily in modernising its thermal power infrastructure while simultaneously expanding renewable energy capacity. Environmental regulations mandating the installation of Flue Gas Desulphurisation (FGD) systems at coal-fired power plants have created a growing pipeline of engineering, procurement, and construction (EPC) opportunities for specialised electrical and infrastructure contractors.

Shares of HEC Infra Projects were trading at Rs. 137.86, up 6.90 percent during Thursday’s session. The stock touched an intraday high of Rs. 137.93 and a low of Rs. 131.97. Over the past 12 months, it has traded between Rs. 92.10 and Rs. 184.10, with the company commanding a market capitalization of approximately Rs. 149 crore.

What’s the News?

HEC Infra Projects Limited has informed the stock exchanges that it has received a Rs. 18.67 crore work order from Engineering Projects (India) Limited (EPIL) under Regulation 30 of the SEBI Listing Regulations. The contract is scheduled to be executed over a period of 10 months.

The order involves the design, engineering, supply, erection, testing, and commissioning of the High Tension (HT) and Low Tension (LT) electrical package on an EPC basis. The project forms part of the Flue Gas Desulphurisation (FGD) system installation for Unit 6 (500 MW) of the Ukai Thermal Power Station in Gujarat.

FGD systems are installed in coal-fired power plants to reduce sulphur dioxide emissions by treating exhaust gases before they are released into the atmosphere. The installation forms part of India’s broader effort to improve environmental compliance while extending the operational life of thermal generation assets.

The company clarified that neither its promoters nor members of the promoter group have any interest in Engineering Projects (India) Limited. It further confirmed that the contract does not qualify as a related-party transaction, ensuring the order has been awarded on an arm’s-length basis.

Commenting on the development, HEC Infra stated that the contract strengthens its presence in the power infrastructure segment and is expected to enhance its prospects for securing similar assignments from both government and private sector clients across multiple states.

The latest contract adds to the company’s growing order pipeline across power transmission, substations, industrial electrification and infrastructure projects. During FY26, HEC Infra has continued expanding its execution footprint across Gujarat, Rajasthan, Haryana and several other states.

As of its Q3 FY26 investor presentation, the company reported a total order book of Rs. 326.08 crore, with an unexecuted balance of Rs. 202.78 crore spread across 27 ongoing projects covering substations, transmission lines, water pumping stations, industrial electrification and related EPC works.

Financial & Business Analysis

Although the newly secured Rs. 18.67 crore order is modest relative to HEC Infra’s overall order book, it further strengthens the company’s presence in the environmental infrastructure segment. The project also expands its exposure beyond conventional transmission and distribution EPC work into pollution-control systems for thermal power plants.

The 10-month execution timeline aligns with HEC Infra’s strategy of focusing on shorter-duration EPC contracts that enable faster revenue recognition, quicker cash conversion, and more efficient utilisation of working capital compared with long-gestation infrastructure projects.

Winning a contract from Engineering Projects (India) Limited (EPIL), a central public sector enterprise, also enhances the company’s execution credentials. Successful delivery could improve its qualification for future government and industrial EPC projects across power, energy, and environmental infrastructure.

HEC Infra has delivered strong financial momentum over the past year. In FY26, revenue surged 57 percent to Rs. 176 crore, while net profit rose 44 percent to Rs. 13 crore, reflecting higher project execution. The company also maintained healthy profitability with a 21.2 percent ROE and 21.4 percent ROCE.

Quarterly performance remained robust as well. For the quarter ended March 2026, revenue increased 9.1 percent year-on-year to Rs. 50.73 crore, while net profit more than doubled to Rs. 6.10 crore. Operating margin expanded sharply to 17.9 percent, indicating improved execution efficiency and better project mix.

The balance sheet has also strengthened alongside growth. Debt-to-equity improved to 0.68 times, debtor days reduced significantly to 55 days from 155 days a year earlier, and working capital days nearly halved to 40 days, reflecting better receivables management and stronger cash conversion.

Cash flow has also improved meaningfully. After reporting negative operating cash flow in FY25 due to higher working capital requirements, the company generated Rs. 3 crore from operating activities in FY26, indicating improving collections as project execution accelerated.

Adding to investor confidence, HEC Infra recently received an upgraded Infomerics IVR BBB- (Stable) credit rating for its long-term banking facilities. The improved rating is expected to enhance financing flexibility and support the company’s growing order pipeline across power, industrial, and infrastructure projects.

Industry & Strategic Analysis

India’s thermal power sector continues to require FGD installations to meet emission norms, creating long-term opportunities for specialised EPC contractors involved in electrical, mechanical, and environmental infrastructure projects.

Growing investments in power transmission and grid modernisation are expanding opportunities for EPC companies with capabilities across substations, transmission lines, renewable energy integration, and power generation infrastructure.

HEC Infra has diversified into water infrastructure, industrial electrification, solar projects, and battery energy storage systems, reducing dependence on transmission projects while creating multiple long-term growth opportunities.

The latest FGD contract strengthens HEC Infra’s credentials in environmental compliance projects. Successful execution could improve its prospects for future thermal plant retrofits and government infrastructure contracts amid intense industry competition.

Company Overview

HEC Infra Projects Limited, incorporated in 2005 and headquartered in Ahmedabad, is an engineering, procurement and construction (EPC) company engaged in transmission and distribution infrastructure, substations, industrial electrification, water treatment, solar projects and power sector engineering solutions. The company serves more than 200 public and private sector clients across India and is listed on the NSE under the symbol HECPROJECT.

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