HFCLNSEHFCL Limited· Telecommunication - EquipmentHighNeutral
Announced Thu, 22 May · 17:57 IST

HFCL Limited has informed the Exchange regarding a press release dated May 22, 2025, titled "Press Release on Audited Financial Results of HFCL Limited for the 4th Quarter and Financial Year ended March 31, 2025, both on Standalone and Consolidated basis.".

Revenue DeclineEbitda Margin CompressionPat NegativeResults View source PDF

HFCL · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

HFCL reported FY25 consolidated revenue of ₹4,064.52 Cr, down nearly 9% YoY from ₹4,465.05 Cr. Consolidated EBIDTA fell about 26% to ₹506.75 Cr and PAT dropped nearly 49% to ₹173.26 Cr, with margins compressing sharply (EBIDTA margin -281 bps to 12.47%, PAT margin -330 bps to 4.26%). Q4FY25 was particularly weak — consolidated revenue fell 40% YoY to ₹800.72 Cr, with EBIDTA turning negative at -₹22.33 Cr and PAT at -₹83.30 Cr. Management attributed the weakness to a downturn in optical fiber cable demand, margin pressure from newly launched telecom products, and slower customer offtake in the EPC business. On the positive side, the company has a strong order book of ₹9,967 Cr as of March 31, 2025, declared a 10% dividend (₹0.1 per share), and guided for 25-30% revenue growth in FY26 driven by full capacity utilization in fiber plants and a ramp-up in defence and data centre businesses.

Likely market impact

The sharp YoY decline in FY25 profits and a loss-making Q4 are negatives that may pressure the stock in the near term. However, the strong ₹9,967 Cr order book, expected fiber plant capacity reaching full utilization, and explicit 25-30% FY26 revenue growth guidance provide a recovery narrative that could limit downside.