HFCL (HFCL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw strong momentum in telecom, optical fiber cables, and defense, with the order book rising to ₹10,480 crore, driven by domestic and global wins and 100% capacity utilization in optical fiber cables by July.

• Strategic wins in defense, new product launches, and capacity expansions position the company for a breakout year, with revenue expected to grow 25% year-over-year and optical fiber cable revenue to double.

• The company is leveraging India's digital and defense modernization, with significant R&D and collaborations, especially in 6G, AI, and indigenous defense technologies.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26, reviewed by the Audit Committee and auditors.

• Fundraising of up to ₹700 crore approved to support growth in defense and telecom sectors, subject to shareholder and regulatory nod.

Financial highlights

• Q1 FY26 consolidated revenue was ₹871.02 crore, up from ₹800.72 crore sequentially but down from ₹1,158.24 crore year-over-year.

• EBITDA for Q1 FY26 was ₹42.93 crore (margin 4.93%), a turnaround from negative EBITDA in Q4 FY25 but down from 16% in Q1 FY25.

• Consolidated net loss for Q1 FY26 was ₹29.30 crore, improving from a net loss of ₹83.30 crore in Q4 FY25 but down from a net profit of ₹110.65 crore in Q1 FY25.

• Order book as of June 30, 2025, was ₹10,480 crore, up from ₹9,967 crore in the previous quarter and ₹6,776 crore in Q1 FY25.

• FY25 revenue was ₹4,064.52 crore, down from ₹4,465.05 crore in FY24; FY25 EBITDA margin at 12.47% vs 15.28% in FY24.

Outlook and guidance

• Revenue is expected to grow 25% in FY26, with optical fiber cable revenue projected to double to ₹2,400 crore, over 50% from exports.

• Defense segment revenue is estimated at ₹200+ crore for FY26.

• Margins in optical fiber cables are expected to return to 15% as demand and capacity utilization improve.

• CapEx for FY26 is projected at ₹250 crore, mainly for IBR cable and optical fiber facility expansion.

• Fundraising aims to leverage growth opportunities in defense and telecom, support expansion, acquisitions, and strengthen capital base.