HFCL Limited , a leading telecom equipment manufacturer and technology provider, has reported mixed financial results for the second quarter of fiscal year 2025-26. The company saw a decline in revenue but managed to improve its profitability margins and recover from a loss in the previous quarter.

Financial Highlights

HFCL reported a consolidated revenue of ₹1,043.34 crore for the quarter ended September 30, 2025, representing a 4.60% decrease from ₹1,093.61 crore in the same period last year. On a standalone basis, revenue from operations slightly declined to ₹1,003.13 crore from ₹1,011.57 crore in Q2 FY25.

Profit Recovery

Despite the revenue decline, HFCL showed a significant improvement in profitability compared to the previous quarter. The company returned to profitability with a standalone net profit of ₹61.44 crore, after reporting a loss of ₹42.34 crore in the preceding quarter. However, this still represents a 17.95% decrease from the ₹74.88 crore profit in Q2 FY25.

On a consolidated basis, the net profit for Q2 FY26 stood at ₹71.92 crore, compared to ₹73.33 crore in the same quarter of the previous year, showing a marginal decline of 1.92%.

Half-Year Performance

For the half year ended September 30, 2025:

• Standalone revenue decreased to ₹1,792.41 crore from ₹2,077.09 crore in the previous year.
• Net profit dropped to ₹19.10 crore from ₹188.86 crore in the corresponding period.

Segment Performance

HFCL operates in two main segments:

1. Telecom Products
2. Turnkey Contracts and Services

Detailed segment-wise performance for the quarter was not provided in the given information.

Earnings Per Share

The basic earnings per share for Q2 FY26 on a standalone basis was ₹0.42, compared to ₹0.52 in the previous year's quarter.

Conclusion

While HFCL faced challenges in revenue growth, its ability to return to profitability after a loss in the previous quarter demonstrates resilience. The company's performance in the coming quarters will be important to assess its growth trajectory and market position in the evolving telecom sector.

HFCL Limited , a prominent player in the telecommunications sector, has taken a significant step to support its subsidiary, HTL Limited. The company has issued a corporate guarantee of Rs 20 crore in favor of Bajaj Finance Limited to secure a term loan facility for HTL. This move underscores HFCL's commitment to fostering growth within its group companies.

Key Details of the Corporate Guarantee

About HTL Limited

HTL Limited, the beneficiary of this corporate guarantee, is a key player in the optical fiber and connectivity solutions industry. The company's operations encompass:

1. Manufacturing of Optical Fiber Cables (OFC)
2. Production of passive connectivity solutions
3. Manufacturing of key OFC raw materials:
   • Aramid Rods
   • Fiber Reinforced Plastic Rods
   • Impregnated Glass Fiber Reinforcement
4. Provision of electrical wiring interconnect solutions for:
   • Aerospace and Defense sectors
   • Automotive and Industrial sectors

Financial Implications

HFCL has confirmed that the corporate guarantee has been provided on an arm's length basis. This transaction will be reflected in HFCL's financial statements as a contingent liability, in line with standard accounting practices for such guarantees.

Regulatory Compliance

In adherence to regulatory requirements, HFCL has duly informed the stock exchanges about this development. The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This strategic move by HFCL to support its subsidiary's financial needs demonstrates the company's confidence in HTL's growth prospects and its commitment to strengthening its group companies' position in the competitive telecommunications and connectivity solutions market.