HFCL Q2 Net Profit Jumps 448% to ₹394 Cr; FY27 Revenue Growth Guidance Hiked to 80%

Key numbers

Revenue Q2 FY27	₹2,542 CrUp 143.6% YoY
Net Profit Q2 FY27	₹394 CrUp 448.1% YoY
Order Book	₹28,911 CrTotal Confirmed
EBITDA Margin	25.89%vs 19.49% YoY

Key highlights

• Net profit surged 448.14% YoY to ₹394.22 crore in Q2 FY27 compared to ₹71.92 crore in Q2 FY26
• Revenue from operations grew 143.62% YoY to ₹2,541.79 crore, driven by a product-led revenue mix
• Management raised FY27 revenue growth guidance to at least 80%, a sharp hike from 40% guided in July 2026
• Confirmed order book reached ₹28,911 crore as of September 30, 2026, with 57% attributed to exports
• Strategic shift away from government projects saw private sector revenue contribution rise to 92%

Aggressive Guidance Revision Amid AI and Defense Tailwinds

HFCL has delivered a significant financial turnaround, with management now projecting an 80% revenue growth for FY27, doubling the 40% target announced in July 2026 and far exceeding the 20-25% range estimated in April 2026. This upward revision is supported by a robust order book that has expanded to ₹28,911 crore. The company is benefiting from a structural demand upcycle in AI infrastructure and hyperscale data centers, alongside a growing presence in the defense sector.

The strategic pivot towards a product-led mix, which now accounts for 91% of revenues, has contributed to a sharp margin expansion, with EBITDA margins reaching 25.89% in the latest quarter.

Pivoting to High-Margin Product and Private Portfolios

• Private sector customers now contribute 92% of total revenue, reducing dependence on government turnkey projects
• Exports currently account for 63% of revenues, with a long-term target to exceed 65% by FY27
• Launched new high-end products including IBR Cable, HFCL Eka Fiber, and A2-180 Fiber to target international markets
• Defense revenue aspiration set at approximately ₹500 crore for FY27, emerging as a major growth engine
• Inventory levels stood at ₹1,543.98 crore as of H1 FY27 to support the scaling production requirements

Accelerated Revenue Aspiration

Based on our current expectations, we now expect revenue growth of at least 80% in FY27. The momentum we see gives us confidence that our ₹10,000 crore revenue aspiration can be achieved much earlier than the FY29 horizon originally envisaged.

Scale-Up and Capacity Expansion Milestones

To support its growth trajectory, HFCL is executing a ₹1,250 crore capital expenditure plan for preform expansion, scheduled for completion by October 2028. Simultaneously, optical fiber and fiber cable capacities are being scaled to 43.1 million fkm and 62 million fkm per annum, respectively, by July 2028. The company has also allocated ₹230 crore for Phase 1 of a facility for Multi-Mode Hand Grenades (MMHG) at the upcoming Andhra Ammunition Complex.

These investments aim to deepen backward integration and strengthen the supply chain, facilitating the company's long-term goal of achieving EBITDA margins above 27% by FY29.

What to watch next

• Commissioning of the ₹215 crore data centre connectivity products facility by September 2027
• Expansion of Optical Fiber capacity to 43.1 mn fkm by July 2028
• Completion of the ₹1,250 crore preform expansion project by October 2028
• Progress on the proposed acquisition within the aerospace and defense business

“HFCL has delivered the best quarterly performance in its history. Our outstanding growth in profitability and stronger margins demonstrate the increasing scale and strength of our business.”

HFCL · financial snapshot

Share price	₹256.01
Market capitalisation	₹39,184.95 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)	68.43×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.