HFCL swings to profit with Rs 246 crore earnings as AI data centre demand drives growth

HFCL Q1 results: Firm swings to black, net profit at Rs 246 crore, revenue soars 120% YoY

HFCL reported a sharp turnaround in Q1FY27, posting a net profit of Rs 246 crore against a year-ago loss as revenue more than doubled. Strong export growth, record order book, expanding AI infrastructure investments and capacity expansion supported robust earnings and strengthened the company's long-term growth outlook. Optical fibre manufacturer HFCL on Wednesday reported a net profit of Rs 246 crore in the first quarter of financial year 2027, a u-turn from a net loss of Rs 29.30 crore reported in the same quarter last year. The company's revenue from operations came in at Rs 1,915 crore, a staggering 120% as compared with Rs 871 crore in the corresponding quarter of the previous financial year, HFCL said in a regulatory filing. The company's EBITDA margin for the quarter under review improved 1,832 basis points to 23.25% from 4.93% in the first quarter of the previous year. EBITDA rocketed 937% to Rs 445.27 crore from Rs 42.93 crore posted in the year-ago period. HFCL reported its highest-ever order book of around Rs 26,665 crore, nearly five times its FY26 revenue, strengthening its long-term revenue visibility. Export revenue rose to Rs 1,063.30 crore, accounting for 55.53% of total revenue in Q1FY27, compared with Rs 209.70 crore or 24.08% of revenue in Q1FY26. The company has revised its FY27 revenue growth estimate to 40%. Its board has also approved an investment of Rs 215 crore to build a manufacturing facility for advanced AI data centre connectivity solutions. HFCL is also expanding its optical fibre and optical fibre cable capacity and setting up additional manufacturing capacity. The robust financials were supported by several structural growth drivers, including rising demand from hyperscale data centres, better product realisations, operating leverage from economies of scale, a diversified portfolio of high-value technology products and expanding export opportunities. Together, these factors have contributed to a significant improvement across key financial metrics, including revenue, EBITDA, PBT and PAT, with the company expecting these market trends to continue strengthening. HFCL's capacity expansion programme is progressing as planned, with optical fibre capacity set to increase from 28 million fibre kilometres to 34 million fibre kilometres, while optical fibre cable capacity is being expanded from 34 million fibre kilometres to 43 million fibre kilometres. The expansion will enhance the company's ability to cater to rising global demand. HFCL is also progressing with its backward integration initiatives. HFCL Managing Director Mahendra Nahata said the company's strategic initiatives are now translating into tangible outcomes, marking the beginning of a new phase of accelerated and profitable growth. Nahata added that the convergence of AI, digital infrastructure, optical connectivity and defence modernisation is creating significant long-term opportunities for the company. At about 3 pm, HFCL shares were trading at Rs 219, higher by half a per cent. The stock price is up 218% in 2026. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

HFCL Reports Record-Breaking Quarter, Sets Ambitious 40% FY27 Growth Target

HFCL Limited today announced its highest ever quarterly financial results for the quarter ended June 30, 2026. Key highlights during Q1FY27 * EBITDA Margin crossed 23% * Achieves Highest-Ever Order Book of ~₹26,665 crore, nearly 5 times of FY26 Revenue, Strengthening Long-Term Revenue Visibility * Export revenue stood at ₹1063.30 crore (55.53% of revenue) in Q1FY27 as compared to ₹209.70 crore (24.08% of revenue) in Q1FY26 * Segment revenue from product segment stood at 85% of total revenue in Q1 FY27 as compared to 66% in Q1FY26 and 85% in Q4 FY26 * FY27 Revenue Growth to the best of its estimate revised to 40% * Board approves investment of ₹215 crore in building advanced AI Data Centre Connectivity Solutions manufacturing facility * Optical Fiber, and Optical Fiber Cable capacity expansion and setting up of green field manufacturing facility of Preform as backward integration are progressing as planned Consolidated Financial Highlights - Q1FY27 Particulars Q1FY27 ₹in crore Q1FY26 ₹in crore Change Y-o-Y % Revenue 1914.98 871.02 119.85% EBIDTA 445.27 42.93 937.20% EBIDTA Margin (%) 23.25% 4.93% 1832 Bps PBT 331.52 -44.70 -- PBT Margin (%) 17.31% -5.13% -- PAT 245.64 -29.30 -- PAT Margin (%) 12.83% -3.36% -- On a standalone basis, the Company reported quarterly revenue of ₹1607.80 crore, EBIDTA of ₹ 336.35 crore, PBT of ₹240.12 crore and PAT of ₹179.21 crore. Our record quarterly financial performance reflects the convergence of multiple structural growth drivers. Rising demand from hyperscale data centres, improved product realisations, operating leverage through economies of scale, a diversified portfolio of high-value technology products, and expanding export opportunities have collectively driven a significant improvement across all key financial metrics, including Revenue, EBITDA, PBT and PAT. As these market trends continue to strengthen and our execution remains robust, we are well positioned to sustain this growth momentum. Key Business Highlights Optical Connectivity HFCL continues to strengthen its position in the rapidly expanding Optical Fiber Cable and connectivity market, supported by accelerating investments in AI-driven data centres, cloud infrastructure, next-generation telecom networks and digital infrastructure globally. The Company's capacity expansion programme remains on track, with Optical Fiber capacity increasing from 28 million fiber kilometres to 34 million fiber kilometres and Optical Fiber Cable capacity expanding from 34 million fiber kilometres to 43 million fiber kilometres, enhancing its ability to meet growing global demand. HFCL is also advancing its backward integration into preform manufacturing, further strengthening supply chain resilience and long-term competitiveness. Defence & Aerospace HFCL continues to scale its Defence & Aerospace business through indigenous technology development, expanding manufacturing capabilities and proposed acquisition. During the quarter, the Company initiated the process of setting up of its Ammunition Manufacturing Complex in Andhra Pradesh for manufacturing of Multi-mode Hand Grenade, Electronic Fuzes, other ammunition products and simultaneously strengthening its portfolio across surveillance Radars, Thermal Imaging Sites and Tactical Communication Solutions. The Company views the Defence business as a strategic long-term growth engine, underpinned by sustainable demand, strong policy support, and significant opportunities for value creation over the coming years. Commenting on the performance, Mr. Mahendra Nahata, Managing Director, HFCL, said " With the strategic initiatives undertaken which are now translating into tangible outcomes, HFCL has entered a new phase of accelerated and profitable growth. I am pleased to share that the Company has delivered its highest-ever quarterly Revenue, Profitability and the Order Book during Q1FY27, underscoring the strength of our execution, expanding product portfolio and growing market opportunities. The convergence of AI, digital infrastructure, optical connectivity and defence modernisation is creating significant long-term opportunities for the Company. To further strengthen our leadership in optical connectivity space, the Board has today approved expansion of manufacturing set-up for advanced data centre connectivity products with an investment of approximately ₹215 crore. With our expanding technology portfolio, manufacturing capabilities and global presence, we remain well positioned to create sustainable long-term value for our stakeholders."