HFCL Q2 earnings: Net profit rises five times, shares hit upper circuit

Shares of telcom infra maker HFCL Ltd hit an upper circuit of 5% on Monday after the firm reported its Q2 earnings. HFCL shares rose 5% to Rs 268.70 against the previous cloe of Rs 255.95. Market cap of the firm rose to Rs 41,127 crore.

PAT surges five times 

Profit before tax (PBT) surged 406.49% YoY and 62.46% QoQ to Rs 538.60 crore. Profit after tax (PAT) climbed 448.14% YoY and 60.49% sequentially to Rs 394.22 crore. The PAT margin improved by 862 basis points YoY and 268 basis points QoQ to 15.51%.

The company reported a strong performance in the second quarter of FY27, with revenue, operating profit and net profit registering substantial growth on both a year-on-year (YoY) and sequential basis. The robust performance was supported by business momentum, while a strong order book provides revenue visibility for the coming years.

Revenue for Q2 rose 143.62% YoY and 32.73% quarter-on-quarter (QoQ) to Rs 2,541.79 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 223.55% YoY and 47.78% QoQ to Rs 658 crore.

EBITDA margin expanded by 640 basis points YoY and 264 basis points QoQ to 25.89%, indicating a significant improvement in operating profitability.

H1 FY27 profitability sees sharp improvement

The company also reported a substantial improvement in profitability during the first half of FY27. profit before tax increased to Rs 870.12 crore from Rs 61.64 crore in the corresponding period of the previous year, representing growth of 1,311.62%.

PAT rose to Rs 639.86 crore from Rs 42.62 crore in the year-ago period, marking a 1,401.31% increase.

Order book exceeds Rs 28,900 crore

The company’s order book has crossed Rs 28,900 crore, supported by an advanced business pipeline. Its current order position provides revenue visibility for six to seven years and beyond, strengthening the outlook for sustained business growth.

Reflecting the momentum and visibility from its existing business, the company expects revenue in FY27 to grow by at least 80% over FY26.

Rs 1,800 crore investment 

The company plans to invest approximately Rs 1,800 crore in optical fibre, cable and preform manufacturing. The proposed investment is aimed at expanding production capacity and deepening vertical integration across its manufacturing operations.

Meanwhile, its defence and aerospace business remains on track to achieve its revenue aspiration of approximately Rs 500 crore in FY27, providing an additional growth avenue alongside its core operations.