HFCL Limited held its Q4 FY26 Earnings Conference Call on April 30, 2026, hosted by Arihant Capital Markets Limited, with Managing Director Mahendra Nahata and CFO Vijay Raj Jain presenting the company's audited financial results for the fourth quarter and full year ended March 31, 2026. The management described the period as a defining milestone, citing a "never-before" quarterly and annual performance driven by improved business mix and consistent execution across optical fibre cable, telecom, defence, EPC, and exports.

Record Financial Performance in FY26 and Q4 FY26

HFCL reported strong growth across all key financial metrics for both the full year and the fourth quarter. The following tables summarise the consolidated financial performance:

Full Year (FY26 vs. FY25):

Quarterly Performance (Q4 FY26 vs. Q3 FY26 vs. Q4 FY25):

Segment revenue from telecom products stood at 66% of total revenue in Q4 FY26, compared to 57% in Q3 FY26 and 74% in Q4 FY24. On a consolidated basis, telecom product revenue for Q4 FY26 was ₹1,206 crore, with a segment margin of 31.75%. For the full year, telecom product revenue stood at ₹2,931 crore with a PBT of ₹764 crore.

All-Time High Order Book and Landmark Export Contract

HFCL's order book reached an all-time high of ₹21,200 crore, with export orders of ₹12,250 crore constituting 58% of the total. Management noted that of the total order book, approximately ₹18,000 crore comprises product delivery orders with execution timelines ranging from the current year to approximately five years, while approximately ₹3,500 crore consists of operations and maintenance contracts spanning six to seven years.

A landmark long-term global optical fibre cable supply contract valued at approximately USD 1.1 billion (equivalent to ₹10,159 crore) was secured during the period, described by management as likely the highest-ever single contract secured by any Indian telecom company. Execution of this contract is expected to commence towards the end of Q1 FY27. Export revenues increased to 41.36% of total revenues in FY26, up from 12.23% in FY25, with more than 70% of cable production currently being exported.

Strategic Business Transformation: Key Metrics

Management highlighted a significant structural transformation in HFCL's business model over recent years, reflected in the following shifts:

Backward Integration: Preform Manufacturing Facility

HFCL announced the establishment of a preform manufacturing facility as a strategic backward integration initiative. Key details are as follows:

Management noted that HFCL's current preform requirement is approximately 1,000 tons per year, and the facility is designed to provide supply security and cost advantages rather than full self-sufficiency.

Defence Expansion: Aerospace Acquisition and Ammunition Facility

The Board of Directors approved a major strategic initiative to expand HFCL's defence business by consolidating complementary defence capabilities under its subsidiary, HFCL Advance Systems Private Limited. The aerospace business being acquired operates in a high-entry-barrier segment with established certifications, long-standing customer relationships, and a confirmed export-oriented order book of approximately ₹1,930 crore. Definitive agreements for the proposed transactions are expected to be executed on or before May 31, 2026, with closing expected within the current calendar year.

Defence Order Book Summary:

In addition, HFCL is establishing an ammunition-focused manufacturing facility in Andhra Pradesh on a 1,000-acre allotted land. Products planned for this facility include electronic fuzes, multi-mode hand grenades, and 155 mm artillery shells. The budgeted capex for this facility in the current year is approximately ₹125 crore (including land and building), with an additional approximately ₹250 crore planned over the following two years. The foundation stone laying ceremony is scheduled for May 15, 2026, with participation from the Defence Minister and the Chief Minister of Andhra Pradesh.

Capacity Expansion: Optical Fibre and Optical Fibre Cable

HFCL outlined its capacity expansion roadmap for optical fibre and optical fibre cable manufacturing:

Management confirmed that optical fibre capacity is currently operating at 100% utilisation. Two new machines are under installation, with additional machines already ordered for installation within the current calendar year.

Data Centre Interconnect Solutions and Capital Expenditure Outlook

HFCL announced a multi-fold expansion of manufacturing capacities for data centre interconnect solutions at its subsidiary HTL Limited. Management indicated that data centre interconnect solutions are expected to contribute approximately ₹400 crore in additional revenue in FY27 and approximately ₹800 crore in FY28. The company's high fibre count cable portfolio extends up to 6,912 fibres per cable, developed by its in-house R&D team.

Capex Guidance:

The Board also approved a preferential issuance of warrants to promoters aggregating to approximately ₹555 crore, subject to necessary approvals, to support preform integration, defence scaling, and long-term working capital requirements.

Management Outlook and Key Expectations

Management expressed confidence in sustaining growth momentum, with the following key expectations shared during the call:

• Revenue growth of approximately 20% to 25% on a year-on-year basis for FY27, based on current order book and market conditions
• EBITDA margin expansion of approximately 3% to 4% on a blended basis in FY27, driven by better product realisations and reduction in EPC-related losses
• Defence revenue expected to constitute approximately 10% to 12% of total revenue in FY27, largely from aerospace and land systems
• EPC business expected to return to profitability from Q2 FY27 onwards, as the Army NFS contract transitions from warranty to AMC (expected AMC revenue of approximately ₹170 crore per year)
• Long-term aspiration to reach ₹10,000 crore in revenue
• A Strategic Restructuring Committee has been constituted to evaluate potential business realignment, including possible demerger of specialised business verticals

Management also noted that HFCL has remained largely insulated from geopolitical disruptions, with supply chains continuing to operate without material impact on production or dispatches.

HFCL Ltd. witnessed a notable block trade on the National Stock Exchange (NSE), with approximately 1,251,961 shares changing hands in a single transaction. The trade was executed at a price of Rs. 130.25 per share, aggregating to a total deal value of Rs. 16.31 crores.

Block Trade Details

The following table summarizes the key parameters of the block trade recorded on the NSE:

Block trades of this scale are typically executed by institutional investors or large market participants, and are carried out outside the regular order book to minimize market impact. The transaction in HFCL reflects considerable activity in the stock at the stated price level.