HFCL Limited , a leading technology enterprise in the telecom and defence sectors, has reported impressive financial results for the second quarter, demonstrating a significant recovery in profitability and strong operational momentum.

Key Financial Highlights

• Revenue increased by 19.78% quarter-on-quarter to ₹1,043.34 crore
• EBITDA surged nearly fivefold to ₹203.37 crore from ₹42.93 crore in the previous quarter
• EBITDA margin expanded to 19.49%, up from 4.93% in the previous quarter
• Profit After Tax (PAT) turned positive at ₹71.92 crore, compared to a loss of ₹29.30 crore in the previous quarter

International Business Growth

HFCL's international business has emerged as a strong driver of growth, contributing 28% of the total revenue in the current quarter, up from 24% in the previous quarter and 10% in the same quarter of the previous year. This increase reflects the company's expanding global footprint and its position as a trusted partner for telecom and technology companies across Europe, US, the Middle East, and Asia Pacific.

Defence Sector Advancements

The company has made significant progress in its defence electronics portfolio:

• Secured new orders for Thermal Weapon Sights
• Participated in the upgradation tender for 811 BMP-2 Armoured Fighting Vehicles for the Indian army
• Allocated land by the Government of Andhra Pradesh for a proposed Defence Manufacturing Facility, focusing on Artillery Ammunition Shells and Multi-Mode Hand Grenades (MMHG)

Telecom Sector Developments

In the telecom sector, HFCL continues to play a crucial role in the BharatNet initiative:

• Received additional orders for routers for the West Bengal Circle
• Participated in two additional circles this quarter
• Expects meaningful order inflows from these circles, strengthening its leadership position in building the nation's broadband infrastructure

Export Order

HFCL has secured an export order worth approximately USD 32.02 million (₹281.20 crore) for the supply of optical fiber cables through its overseas wholly-owned subsidiary. This order underscores the trust global customers place in HFCL's manufacturing capabilities and product quality.

Management Commentary

Mahendra Nahata, Managing Director of HFCL, stated, "Our Q2 results reflect the power of strategic execution and our innovation-driven transformation. The strong recovery in margins and profitability, combined with growing international demand and breakthrough achievements in defence, affirm our evolution into a global technology enterprise."

Future Outlook

HFCL is poised for a transformative growth phase, driven by:

1. Innovation and an expanding product portfolio across telecom and defence sectors
2. Increasing global footprint through advanced optical fiber technologies and next-generation telecom products
3. Strong momentum in indigenous defence solutions
4. Robust execution and strong ESG credentials

As HFCL continues to strengthen its position in both domestic and international markets, the company appears well-positioned to capitalize on opportunities in the evolving technology landscape.

About HFCL Limited

HFCL Limited is a technology enterprise with operations in high-end Telecom and Defence Equipment, Optical Fiber, and Optical Fiber Cables. The company creates digital networks for telcos, enterprises, and governments, offering innovative solutions for the most advanced networks.

HFCL Limited , a leading telecom equipment manufacturer and technology provider, has announced a significant export deal worth approximately $32.02 million (equivalent to ₹281.20 crore) for optical fiber cables. The company secured this order through its overseas wholly-owned subsidiary from a renowned international customer.

Contract Details

The export order, which HFCL will fulfill by December 2026, underscores the company's growing presence in the global telecom infrastructure market. This deal not only highlights HFCL's manufacturing capabilities but also reinforces the trust international customers place in the company's technological expertise and product quality.

Financial Impact

This new contract is expected to contribute positively to HFCL's revenue stream. The size of the order, at ₹281.20 crore, represents a substantial boost to the company's order book and export-oriented business.

Market Position

HFCL's success in securing this international contract demonstrates its competitive edge in the global optical fiber cable market. The company's ability to win such significant export orders indicates its strong product portfolio and its capacity to meet international quality standards.

Company's Response

Commenting on the new order, HFCL stated, "This significant order reaffirms the trust our global customers place in the Company's manufacturing capabilities, technological excellence and product quality."

Execution Timeline

According to the details provided by HFCL to the stock exchanges, the execution of this order is scheduled to be completed by December 2026, indicating a long-term engagement with the international customer.

Broader Context

This export order comes at a time when the global demand for optical fiber cables is on the rise, driven by increasing internet penetration and the ongoing rollout of 5G networks worldwide. HFCL's success in securing this deal positions the company well to capitalize on these global trends.

The contract also aligns with HFCL's strategy to expand its international footprint and diversify its revenue streams beyond the domestic market.

Conclusion

The $32.02 million export contract marks a significant milestone for HFCL, showcasing its growing capabilities in the telecom equipment sector and its increasing relevance in the global market. As the company continues to focus on innovation and quality, such international deals may play a crucial role in HFCL's growth trajectory in the coming years.