HFCL Limited has announced its audited financial results for the fourth quarter and full year ended March 31, 2025. The consolidated revenue for the reported year stood at Rs 40.64 billion, a decrease of 8.97 per cent from Rs 44.65 billion in the previous year. The company reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 5.06 billion as compared to Rs 6.82 billion in fiscal year 2023-24 (FY24), a year-on-year (YoY) decline of 25.71 per cent. The EBITDA margin fell to 12.47 per cent during FY25. Meanwhile, the consolidated profit after tax (PAT) for the company was Rs 1.73 billion, registering a 48.67 per cent YoY dip.
On a standalone basis, the company reported revenue of Rs 37.95 billion, EBITDA of Rs 4.75 billion, profit before tax (PBT) of Rs 2.41 billion, and PAT of Rs 1.94 billion.
Further, for the fourth quarter (Q4) of FY25, the company posted revenue of Rs 8 billion, down 20.87 per cent quarter-on-quarter (QoQ) from Rs 10.11 billion during the previous quarter. EBITDA during Q4 was negative Rs 0.22 billion, a QoQ decline of 112.99 per cent from 1.71 in Q3 FY25. The company’s PAT for the reported quarter was negative Rs 0.83 billion, a decrease of 214.77 per cent QoQ from Rs 0.72 million in Q3 FY25.
Commenting on the results, Mahendra Nahata, managing director, HFCL, said, “FY25 was a year of both strategic advancement and transitional challenges. While our financial performance was impacted by the downturn in the optical fibre cable demand, margin pressure from newly launched telecom products and slower customer offtake in our EPC business, we remained focused on strengthening the foundations for long-term growth.
With the existing strong order book of Rs 99.67 billion and growth in demand for its products, the company expects improved performance in the current FY on overall basis. The optical fibre and optical fibre cable business is expected to have substantial increase in revenue in the FY 2025-26 with increased demand from domestic as well as global customers. The fibre manufacturing plant capacity utilisation was 45 per cent during the FY 2024-25. It is now working at full capacity utilisation. Similarly, capacity utilisation of fibre optic cable plant was also 40 per cent in the last FY. It will attain full capacity utilisation by July 2025.
Existing telecom products especially routers and fixed wireless access terminals for 5G application together with new products like Wi-Fi 7 access points and higher capacity unlicensed band radios will also contribute to growth in revenue.
The defence sector is also expected to contribute in revenue from Q2 of the current FY. The company is receiving several enquiries from international market for its existing portfolio of defence products such as ground surveillance radar and electronic fuses. HFCL is also developing drone detection radar which is expected to be productionised in the current FY.
HFCL is actively bidding for defence tenders for tactical cables and has already secured an initial order worth approximately Rs 0.44 billion from the Indian Army for tactical cable through its subsidiary, HTL Limited. Results from similar large tenders where we have also bid is expected soon. Additionally, the company has emerged as the lowest bidder for a Rs 0.55 billion contract to supply Electro Optic devices to the Indian Army. Our wire harness business, having already secured initial orders is supporting upgradation of various types of fighter aircrafts and T-72 tanks represents a scalable and margin-accretive opportunity. DRDO has also approved transfer of technology to HFCL for two critical defence products. This further reinforce our commitment to delivering indigenous, battlefield ready solutions. We have also created a defence equipment manufacturing facility in Hosur in Tamil Nadu.
With strong adoption of artificial intelligence (AI), increased number of hyperscale data centres are being built worldwide. We have strengthened our existing manufacturing facility for manufacturing data centre centric connectivity solutions. This newly created business stream will lead to increase in customer base and revenue.
Exports are becoming an increasingly integral part of our growth strategy. With fibre optic cables, 5G fixed wireless access (FWA) CPEs, routers, Wi-Fi access points, passive connectivity solutions and high performance FRP rods, HFCL has expanded into global markets. We are also receiving enquiries from international market for our defence equipment. In FY25, we made significant inroads, securing key export contracts building a strong pipeline with existing order book of ~Rs 99.67 billion as on 31st March, 2025.
With strong orderbook, demand pick-up and full capacity utilisation, the company expects growth of 25-30 per cent in the revenue of the current FY.
Looking at the current robust order book, capacity utilisation returning to full scale, strategic investments bearing fruit, and multiple global and domestic growth engines gaining momentum especially in optical fibre cable, defence, telecom, and data centre connectivity solutions, we are confident of delivering a strong rebound in FY26. Our focus remains steadfast on innovation, global expansion, and sustainable value creation for all stakeholders.”
