HFCL (HFCL) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw strong demand recovery in optical fiber cables, driven by hyperscale data centers, AI, and global 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 and reflecting successful execution of export-led strategy.

• Capacity expansions for optical fiber and cables are on track, with significant increases expected by June and December 2026 to meet rising demand.

• Defense and telecom equipment segments advanced, with indigenous product development and new orders in electronic fuses, radars, routers, and electro-optic systems.

• Financial results for Q3 and 9M FY26 were reviewed and approved by the Board, complying with Ind-AS and SEBI regulations.

Financial highlights

• Q3 FY26 consolidated revenue: ₹1,210.79 crore (up from ₹1,043.34 crore in Q2 FY26 and ₹1,011.95 crore YoY); EBITDA: ₹243.52 crore (margin 20.11%); PAT: ₹102.37 crore (margin 8.45%).

• 9M FY26 revenue: ₹3,125.15 crore (down 4.25% YoY); EBITDA margin: 15.67%; PAT: ₹144.99 crore (down 43.49%).

• Product revenues formed 60% of total, project revenues 40% in Q3 FY26; exports contributed 27%.

• Telecom Products segment revenue for Q3 FY26 was ₹722.08 crore; Turnkey Contracts and Services was ₹487.98 crore.

• Standalone net profit after tax for Q3 FY26 was ₹56.19 crore, down from ₹78.48 crore YoY.

Outlook and guidance

• Sequential revenue growth of 10-15% expected in Q4 FY26, with profitability to surpass last year if current momentum continues.

• OFC capacity to increase from 30.5 mn fkm to 42.36 mn fkm by June 2026; further expansion planned by December 2026.

• FY27 OFC business revenue estimated at ₹3,500 crore, with 10% PBT and 18% EBITDA margins; defense segment revenue expected at ₹400-500 crore.

• Telecom products (including 5G) projected at ₹500 crore; O&M services to reach ₹400-500 crore in 2-3 years; EPC business to contribute around ₹1,000 crore next year.

• Deferred dispatches expected to support current quarter revenue as logistics and tariff challenges stabilize.