HFCL Limited , a leading telecom equipment manufacturer and technology provider, reported encouraging results for Q1 FY26 and outlined ambitious growth plans in its recent earnings call.

Financial Highlights

• Revenue stood at ₹871.02 crore, up from ₹800.72 crore in Q4 FY25 but down from ₹1,158.24 crore in Q1 FY25
• EBITDA improved to ₹42.93 crore with a 4.93% margin, compared to a loss in Q4 FY25
• Net loss narrowed to ₹29.30 crore from ₹83.30 crore loss in Q4 FY25

Key Business Updates

• Order book stands at ₹10,480 crore as of June 30, 2025
• Secured export orders worth ₹300 crore for optical fiber cables
• Achieved export revenues of ₹210 crore in optical fiber cables during the quarter
• Board approved expansion of IBR cable capacity from 1.73 million fiber kilometers to 19.01 million fiber kilometers per annum

Segment Performance

Optical Fiber Cable Business

• Seeing strong demand revival globally
• Revenue projected to double to ₹2,400 crore from ₹1,200 crore in FY25

Telecom Product Segment

• Contributed 66.35% of total revenue

Defense Business

• Gaining traction with new orders and product developments
• Revenue estimated at over ₹200 crore for FY26

Strategic Initiatives

• Expanding manufacturing capacity for high-count and IBR fiber cables
• Developing passive connectivity solutions for data centers
• Advancing indigenous defense technologies through DRDO partnerships

Outlook

Management expects 25-30% revenue growth for FY26. HFCL's Managing Director Mr. Mahendra Nahata expressed confidence in the company's growth trajectory, citing renewed demand in optical fiber, progress in defense projects, and new opportunities in data center connectivity. The company remains focused on technology-driven growth across telecom, defense and connectivity solutions.

HFCL Limited , a leading telecom equipment manufacturer and technology provider, has reported significant growth in its order book and outlined ambitious expansion plans for the coming years.

Strong Order Book Growth

HFCL's order book has shown impressive growth, reaching Rs 10,480.00 crores as of June 30, 2025. This marks a substantial increase from Rs 9,967.00 crores in the previous quarter and Rs 6,776.00 crores in Q1 FY25. The company has expressed confidence in its ability to execute approximately Rs 3,000.00 crores from this order book during the current fiscal year.

Ambitious FY26 Expansion Plans

Looking ahead to FY26, HFCL has unveiled ambitious growth plans across various segments:

1. Capital Expenditure: The company has earmarked Rs 250.00 crores for planned capital expenditure in FY26.

2. Optical Fiber Cable Business: HFCL expects its optical fiber cable business to more than triple, projecting growth from Rs 700.00 crores to Rs 2,400.00 crores. Notably, over 50% of this revenue is anticipated to come from exports.

3. Defense Segment: The company projects its defense segment to generate revenue exceeding Rs 200.00 crores.

Segment-wise Margin Guidance

HFCL has provided margin guidance across its various business segments:

Innovative Technology Development

In a move to diversify its technological offerings, HFCL is developing drone detection radar technology with soft kill capabilities. The company reports that lab trials for this technology are nearly complete, with field trials scheduled for August.

Outlook

With a strong order book, ambitious expansion plans, and ongoing technological innovations, HFCL appears to be positioning itself for significant growth in the telecom and defense sectors. The company's focus on exports in its optical fiber cable business and its entry into advanced defense technologies suggest a strategic push towards diversification and global market expansion.