HFCL Limited (HFCL) has released its financial results for quarter ended (QE) June 30, 2025. Despite macroeconomic headwinds, the company recorded revenue of Rs 8.71 billion in first quarter (Q1) financial year 2025-26 (FY26), up from Rs 8.01 billion in Q4 FY25, and reported a sharp recovery in earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 429.3 million compared to a loss in the previous quarter. While loss after tax (LAT) stood at Rs 293 million, the performance marked significant operational improvement, and laid the foundation for a strong FY26. HFCL’s order book surged to Rs 104.8 billion, reflecting growing customer confidence and demand visibility.
Meanwhile, on a standalone basis, the company reported quarterly revenue of Rs 7.89 billion, EBIDTA of Rs 129.9 million, loss before tax of Rs 628.9 million and LAT of Rs 423.4 million.
After several muted quarters, HFCL’s optical fibre cable (OFC) business witnessed a strong rebound in Q1 FY26, driven by Rs 3 billion worth of new export orders and Rs 2.1 billion in export revenues. The company gained product approvals from several new international clients and also received repeat orders from leading global customers, particularly across Europe and Asia. Further, to cater to rising demand from hyperscale data centres and digital infrastructure globally, HFCL’s board approved the expansion of intermittent bonded ribbon (IBR) cable capacity from 1.73 million to 19.01 million fibre kilometres per annum, increasing total OFC capacity to 42.36 million fkm per annum.
Furthermore, HFCL achieved a major milestone by developing and commercially deploying indigenous multiprotocol label switching (MPLS) routers, securing Rs 6.5 billion in orders under BharatNet Phase III, and also bagged a repeat order worth Rs 1.75 billion for its 5G networking gear from a domestic telecom operator.
Moreover, HFCL’s defence business made remarkable progress, securing a breakthrough order for thermal weapon sights for AK-203 rifles and emerging as the L1 bidder for a Rs 900 million tactical cable order. The company also signed two technology licensing agreements with DRDO for advanced battlefield solutions. Final testing of our electronic fuzes for artillery guns by DRDO is scheduled for August 2025.
In addition, the company showcased its cutting-edge defence portfolio at the 55th Paris Air Show, attracting strong interest from global original equipment manufacturers (OEMs) and partners. HFCL is now advancing indigenous solutions such as coastal and drone detection radars and unmanned aerial platforms, with several technologies already in the testing or pre-production phase.
HFCL secured multiple orders for Passive Connectivity Solutions (PCS) and export orders for UV and thermal FRP rods, expanding its global footprint. PCS is expected to see significant revenue growth, driven by increasing demand from telcos and data centres.
Commenting on the performance, Mahendra Nahata, managing director, HFCL said, “Q1 FY26 has set a strong foundation for what we believe will be a breakout year for HFCL, with 66 per cent of our revenue coming from the product segment and exports contributing 24 per cent to the total revenue. We expect this positive momentum to continue and strengthen in the upcoming quarters. Our strategic shift towards high-tech, value-added products in telecom and defence is already yielding encouraging results. With growing global demand, the government’s push for Atmanirbhar Bharat, and our expanding manufacturing capabilities, HFCL is well-poised to lead in next-generation connectivity and secure communication technologies. We remain confident in our ability to deliver sustained value to all stakeholders in FY26 and beyond.”
