HFCL (HFCL) investor relations material

Executive summary

• Q3 FY26 saw strong demand recovery in optical fiber cables, driven by global data center expansion, AI, and digital infrastructure investments, with export revenues rising to 27% of total and a shift to a product-led, internationally diversified model.

• Order book reached ₹11,125 crore as of December 31, 2025, ensuring healthy revenue visibility.

• The company is expanding its product portfolio beyond cables to include data center interconnect solutions, advanced telecom equipment, and defense electronics, with significant investments in R&D and capacity.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were reviewed and approved by the Board on February 3, 2026.

Financial highlights

• Q3 FY26 consolidated revenue: ₹1,210.79 crore (up from ₹1,011.95 crore in Q3 FY25 and ₹1,043.34 crore in Q2 FY26).

• Q3 FY26 EBITDA: ₹243.52 crore (margin 20.11%), up from ₹203.36 crore in Q2 and ₹171.89 crore in Q3 FY25.

• Q3 FY26 PAT: ₹102.37 crore (margin 8.45%), up from ₹71.92 crore in Q2 and ₹72.58 crore in Q3 FY25.

• 9M FY26 revenue: ₹3,125.15 crore (down 4.25% YoY); 9M EBITDA: ₹489.82 crore (margin 15.67%); 9M PAT: ₹144.99 crore (margin 4.64%).

• Standalone Q3 FY26 PAT was ₹56.19 crore, down from ₹78.48 crore in Q3 FY25.

Outlook and guidance

• Sequential revenue growth of 10–15% expected in the next quarter, with profitability anticipated to surpass last year’s levels.

• OFC capacity to increase from 30.5 mn fkm to 42.36 mn fkm by June 2026; fiber capacity to 34 mn fkm by December 2026.

• Deferred dispatches and stabilization of logistics/tariff challenges expected to support current quarter revenue.

• Focus on high-margin product revenue and private/export customers to drive future growth and margin expansion.