HFCL Reports Record Q2 Net Profit Growth of 448% as Revenue Guidance Doubles to 80%

Key numbers

Net Profit Qtr	₹394.22 Cr448.1% YoY Growth
Market Capitalization	₹41,144 CrTelecommunications
PEG TTM	0.05Sector PEG 2.07
Order Book	₹28,900 CrMulti-year visibility

Key highlights

• Consolidated Net Profit surged 448.14% year-on-year to reach ₹394.22 crore in Q2 FY27
• Quarterly revenue grew by 143.6% YoY to ₹2,541.79 crore fueled by high-margin connectivity products
• Management doubled its annual revenue growth guidance for FY27 to 80%, up from 40% guided in July
• Order book stands at ₹28,900 crore, providing multi-year visibility across telecom and defense sectors
• Export performance showed exceptional growth of approximately 493% compared to the same period last year

Record Financial Performance and Guidance Leap

HFCL reported a milestone quarter with consolidated revenue reaching ₹2,541.79 crore, marking a 143.6% increase over the previous year. Profitability metrics saw even steeper climbs, with profit after tax rising 448.14% to ₹394.22 crore. This surge is attributed to a strategic pivot toward high-margin data center connectivity solutions and specialized optical fibers.

Consequently, management has significantly upgraded its outlook for the current fiscal year. After starting FY27 with a 20% growth aspiration in April and revising it to 40% in July, the company now targets a minimum of 80% revenue growth for the full year.

Operational Traction in Hyperscalers and Defense

• Hyperscale data centers and AI infrastructure demand now represent approximately 70% of export orders
• Export revenue experienced a massive 493% YoY increase as the company gains global market share
• EBITDA margins expanded to 25.89%, a improvement of 640 basis points over the previous year
• Defense and aerospace segment targets ₹500 crore in revenue for FY27 through indigenous radar and surveillance products
• Successfully delivered the second batch of thermal weapon sights for AK-203 rifles to the Indian Defense Forces

Strategic Capex and Backward Integration

The company is executing a ₹1,800 crore capital expenditure program focused on optical fiber, fiber cable, and glass preform manufacturing. HFCL aims to double its preform capacity from 300 to 600 metric tons and has advanced its commissioning timeline by nearly ten months. A mid-term solution for in-house preform production is expected to begin in the first quarter of the next calendar year.

These efforts toward backward integration are designed to secure the supply chain and enhance long-term margin profiles, particularly as global demand for 180-micron specialized fibers continues to outpace supply.

Management Observations on Market Dynamics

We do not see this quarter as a peak, but as the sustained phase of strong growth. Our confidence rests on robust order book, strong pipeline, and long-term customer programs.

What to watch next

• Commissioning of the ₹215 crore AI data center connectivity products facility by September 2027
• Finalization of the EPC segment restructuring plan following recommendations from the board committee
• Completion of the aerospace business acquisition expected during the current quarter
• Expected start of construction for the ammunition manufacturing complex in Andhra Pradesh

“It is my privilege to present the best ever quarterly performance in HFCL's history that marks a defining moment in our growth journey.”

“Based on our current expectation and business visibility, we expect revenue growth of at least 80% in this financial year.”

HFCL · financial snapshot

Share price	₹268.81
Market capitalisation	₹41,144.13 Cr
Revenue (annual)	₹4,949.27 Cr
Net profit (annual)	₹311.74 Cr
Revenue (latest quarter)	₹1,914.98 Cr+4.98% vs previous quarter
Net profit (latest quarter)	₹228.60 Cr+28.07% vs previous quarter
P/E (TTM)	71.86×Sector 112.46×
Promoter holding	28.29%0.00% QoQ
FII holding	17.24%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.