HFCL Q2 Results: Net Profit jumps 448% to ₹394 Crore, Revenue up 144%, Shares climb 5%

19 Oct 2026 , 04:09 PM

HFCL reported a sharp improvement in its financial performance for Q2 FY27, with net profit surging 448% year-on-year to ₹394 crore and revenue from operations rising 144% to ₹2,542 crore. Strong growth in revenue and EBITDA, supported by demand for optical fibre, telecom connectivity and AI infrastructure, strengthened the company’s outlook.

HFCL shares touched upper circuit to climb 5% on Monday to ₹268.81.

Key Pointers –

• Net profit jumps 448%: Profit increased to ₹394 crore from ₹71.92 crore in Q2 FY26.
• Revenue rises 144%: Revenue from operations reached ₹2,542 crore, up 33% sequentially.
• EBITDA surges 224%: EBITDA increased 223.55% year-on-year and 47.78% quarter-on-quarter to ₹658 crore.
• Margins expand: EBITDA margin rose to 25.89%, up 640 basis points year-on-year and 264 basis points sequentially.
• Order book exceeds ₹28,900 crore: The company said its order book provides revenue visibility for six to seven years and beyond.
• FY27 revenue guidance: HFCL expects revenue to grow by at least 80% over FY26.
• ₹1,800 crore investment planned: The company intends to expand optical fibre, cable and preform manufacturing capacity.
• Defence revenue target: HFCL remains on track to generate around ₹500 crore in defence revenue in FY27.
• Aerospace acquisition: The acquisition is expected to be completed during the current quarter, strengthening its defence and aerospace capabilities.

HFCL Share Price Today

Why Is HFCL in Focus?

1. Strong growth in profit and revenue HFCL’s Q2 performance reflects a substantial increase in both revenue and operating profitability. Revenue grew 144% year-on-year, while EBITDA rose even faster, lifting the EBITDA margin to 25.89%. This indicates improved operating profitability during the quarter.

2. AI infrastructure and data-centre demand The company expects demand for optical fibre cables and connectivity solutions to benefit from investments in AI infrastructure, hyperscale data centres and telecom networks. It also reported growing opportunities with international hyperscalers and telecom operators.

3. Large order book supports revenue visibility HFCL’s order book of more than ₹28,900 crore provides a substantial base of contracted business. The company also highlighted an advanced pipeline of prospective orders. However, the timing of execution and conversion of new opportunities will influence actual revenue.

4. Defence and aerospace offer another growth avenue HFCL is expanding its presence in defence and aerospace, with products spanning thermal weapon sights, electronic fuzes, surveillance radars, multi-mode hand grenades and aerostructures. Its FY27 defence revenue target stands at around ₹500 crore.

5. Capacity expansion to support future growth The planned investment of around ₹1,800 crore in optical fibre, cable and preform manufacturing is meant to scale up production capacity and deepen integration across the company’s operations. The investment will be crucial in addressing future demand, although its eventual returns will depend on execution and utilisation of the capacity.

What Lies Ahead for HFCL?

HFCL has outlined an ambitious growth outlook, targeting at least 80% revenue growth in FY27 over FY26. Its optical fibre and connectivity business, exposure to AI-related infrastructure and expansion into defence and aerospace are expected to be the key growth drivers. The main factors to monitor are order execution, conversion of the pipeline into confirmed contracts, delivery of the planned capacity expansion and achievement of the company’s revenue guidance.

Key takeaways:

HFCL delivered strong Q2 FY27 growth, supported by higher revenue, expanding margins and a large order book. Its ability to translate demand and order visibility into sustained revenue and profitability will be central to its future performance.

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