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HFCL Q2 FY27 results: net profit ₹394.22 crore vs ₹71.92 crore, revenue up 143.6%
HFCL Limited reported consolidated revenue of ₹2,542 crore in Q2 FY27, up 143.6% year on year, with a net profit of ₹394.22 crore and EBITDA margin of 24.8%. Profit after tax rose 448.1% from Q2 FY26 and 60.5% from Q1 FY27, while basic EPS increased to ₹2.37.
Key points
- Consolidated revenue was ₹2,542 crore in Q2 FY27, up 143.6% from Q2 FY26 and 32.7% from Q1 FY27.
- EBITDA was ₹630.54 crore, up 231.3% year on year, while the EBITDA margin rose to 24.8% from 18.2%.
- A net profit of ₹394.22 crore was up 448.1% from Q2 FY26 and 60.5% from Q1 FY27.
- Basic EPS increased to ₹2.37 from ₹0.47 in Q2 FY26 and ₹1.49 in Q1 FY27.
- H1 FY27 revenue was ₹4,456.77 crore and net profit was ₹639.86 crore, compared with ₹1,914.36 crore and ₹42.61 crore in H1 FY26.
How did HFCL perform in Q2 FY27?
HFCL reported consolidated revenue of ₹2,542 crore for Q2 FY27, up ₹1,498 crore or 143.6% from Q2 FY26. Revenue also rose ₹626.81 crore or 32.7% from ₹1,915 crore in Q1 FY27. EBITDA was ₹630.54 crore, up 231.3% year on year and 52.3% sequentially, while the EBITDA margin increased to 24.8% from 18.2% and 21.6%.
The company reported a net profit of ₹394.22 crore for Q2 FY27, against ₹71.92 crore in Q2 FY26 and ₹245.64 crore in Q1 FY27. Basic EPS was ₹2.37, compared with ₹0.47 and ₹1.49, respectively. On the standalone basis, revenue was ₹2,177.76 crore and profit after tax was ₹268.02 crore, against ₹61.44 crore in the year-ago quarter.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 2,542 | 1,915 | 1,043 | +143.6% | +32.7% |
| Other income | 27.46 | 31.15 | 13.04 | +110.6% | −11.8% |
| Total expenses | 2,030 | 1,615 | 949.84 | +113.8% | +25.7% |
| EBITDA | 630.54 | 414.12 | 190.33 | +231.3% | +52.3% |
| EBITDA margin | 24.8% | 21.6% | 18.2% | +6.6 pp | +3.2 pp |
| Profit before tax | 538.94 | 331.54 | 106.54 | +405.9% | +62.6% |
| Tax | 144.38 | 85.88 | 34.42 | +319.5% | +68.1% |
| Net profit | 394.22 | 245.64 | 71.92 | +448.1% | +60.5% |
| EPS (₹) | 2.37 | 1.49 | 0.47 | +404.3% | +59.1% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in HFCL's costs and profit?
Total expenses were ₹2,030 crore in Q2 FY27, up ₹1,080 crore or 113.8% from Q2 FY26. Cost of materials rose ₹959.96 crore or 230.1% to ₹1,377 crore, employee cost increased ₹36.10 crore or 38.3% to ₹130.34 crore, and other expenses rose ₹96.74 crore or 84.5% to ₹211.24 crore. Finance costs were ₹65.34 crore, up ₹4.44 crore, while depreciation rose ₹17.79 crore to ₹53.72 crore.
Other income increased ₹14.42 crore or 110.6% to ₹27.46 crore, while tax rose ₹109.96 crore or 319.5% to ₹144.38 crore. There was no exceptional item. Profit before tax was ₹538.94 crore, up ₹432.40 crore from Q2 FY26. Against Q1 FY27, employee cost fell ₹16.72 crore and other income fell ₹3.69 crore, while cost of materials rose ₹407.85 crore and tax rose ₹58.50 crore.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 1,377 | 417.11 | +959.96 | +230.1% |
| Employee cost | 130.34 | 94.24 | +36.10 | +38.3% |
| Finance costs | 65.34 | 60.90 | +4.44 | +7.3% |
| Depreciation | 53.72 | 35.93 | +17.79 | +49.5% |
| Other expenses | 211.24 | 114.50 | +96.74 | +84.5% |
| Total expenses | 2,030 | 949.84 | +1,080 | +113.8% |
| Other income | 27.46 | 13.04 | +14.42 | +110.6% |
| Tax | 144.38 | 34.42 | +109.96 | +319.5% |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
HFCL reported H1 FY27 revenue of ₹4,456.77 crore, up ₹2,542.41 crore or 132.8% from ₹1,914.36 crore in H1 FY26. Total income rose ₹2,573.45 crore or 132.5% to ₹4,515.38 crore, and EBITDA was ₹1,103.27 crore against ₹246.30 crore in the year-ago period.
Profit before tax for H1 FY27 was ₹870.48 crore, compared with ₹61.64 crore in H1 FY26, while net profit was ₹639.86 crore against ₹42.61 crore. EPS increased to ₹3.86 from ₹0.25. The filing presented H1 FY27 profit after tax as ₹639.86 crore, compared with ₹42.62 crore in its earnings presentation.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 4,457 | 1,914 | +132.8% |
| Profit before tax | 870.48 | 61.64 | +1312.2% |
| Net profit | 639.86 | 42.61 | +1401.7% |
| EPS (₹) | 3.86 | 0.25 | +1444.0% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 30 September 2026, total assets were ₹10,174.92 crore, compared with ₹8,867.58 crore at 31 March 2026. Total equity increased to ₹5,755.44 crore from ₹4,948.59 crore, borrowings rose to ₹1,840.13 crore from ₹1,713.37 crore, and cash increased to ₹184.97 crore from ₹37.67 crore. Inventories were ₹1,543.98 crore, trade receivables were ₹2,630.03 crore, and trade payables were ₹1,185.95 crore.
H1 FY27 operating cash flow was ₹455.27 crore, compared with negative ₹43.61 crore in H1 FY26. Investing cash flow was negative ₹447.74 crore against negative ₹79.09 crore, while financing cash flow was ₹139.77 crore against ₹81.6 crore. Capital expenditure was ₹436.27 crore, compared with ₹133.74 crore in the year-ago period.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 10,175 | 8,868 |
| Total equity | 5,755 | 4,949 |
| Borrowings | 1,840 | 1,713 |
| Cash and equivalents | 184.97 | 37.67 |
| Inventories | 1,544 | 1,416 |
| Trade receivables | 2,630 | 2,212 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | 455.27 | −43.61 |
| Cash from investing | −447.74 | −79.09 |
| Cash from financing | 139.77 | 81.60 |
| Capital expenditure | 436.27 | 133.74 |
Source: Company's results filing (XBRL).
How has HFCL done over the last 8 quarters?
Revenue rose in each of the last four quarters. In the available series, it bottomed at ₹800.72 crore in Q4 FY25 and reached ₹2,541.79 crore in Q2 FY27. The current quarter was the highest revenue point shown, while profit and EBITDA margin were also at their highest levels in the series.
Net profit bottomed at a loss of ₹83.3 crore in Q4 FY25 and reached ₹394.22 crore in Q2 FY27. EBITDA margin moved from negative 4.5% in Q4 FY25 to 24.8% in Q2 FY27, extending the improvement from Q1 FY27’s 21.6%. Management said: “Friends, I want to emphasise that we do not see this quarter as a peak, but as the sustained phase of strong growth.”
Which businesses drove the quarter?
Telecom Products generated revenue of ₹2,321.98 crore, up 332.7% from ₹536.57 crore in the year-ago quarter, and EBIT of ₹716.24 crore against ₹127.21 crore. Its reported EBIT margin was 30.8%. Defence Product and Services reported revenue of ₹54.94 crore and EBIT of ₹3.45 crore, with an EBIT margin of 6.3%.
Turnkey Contracts and Services reported revenue of ₹136.07 crore, down 73.1% from ₹506.77 crore, and EBIT of negative ₹122.58 crore against ₹35.92 crore. Its EBIT margin was negative 90.1%. Others reported revenue of ₹28.8 crore and EBIT of ₹3.13 crore, with an EBIT margin of 10.9%.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| Telecom Products | 2,322 | +332.7% | 716.24 | 30.8% |
| Defence Product and Services | 54.94 | 3.45 | 6.3% | |
| Turnkey Contracts and Services | 136.07 | −73.1% | −122.58 | -90.1% |
| Others | 28.80 | 3.13 | 10.9% |
Source: Company's results filing (XBRL segment data).
What else did the company announce?
The board approved HFCL’s un-audited financial results for the quarter and half year ended 30 September 2026 on both a standalone and consolidated basis. The filing also enclosed the statement of assets and liabilities, statement of cash flow, press release and limited review reports. HFCL submitted its earnings presentation for discussion during the earnings call. No dividend, fund raise or appointment was stated in the same-day filings.
What did HFCL's management say?
Management raised FY27 revenue-growth guidance to at least 80% from 40% after Q1 and retained the ₹10,000 crore FY29 revenue aspiration, saying it could be achieved earlier. It expects defence revenue of ₹500–600 crore in FY27 and at least ₹2,000 crore in FY28, with connectivity revenue above ₹800 crore in FY27 and ₹2,000 crore in FY28.
Management said the order book was ₹28,900 crore and that Q2 was not the peak. About ₹1,800 crore of planned capital expenditure will expand fibre, cable and preform capacity, with preform commissioning expected in October 2028. Management also expects Q3 FY27 revenue and profitability to grow sequentially.
Management identified risks from geopolitical disruption, germanium and preform availability, higher interest rates, delayed milestone billing in the loss-making EPC business and temporary raw-material price pressure. It said raw-material price resets could affect margins before customer prices adjust, while the EPC restructuring remained pending.
How did HFCL shares react?
HFCL’s shares closed 5.0% higher on the reaction day from the previous close. By the next day’s close, the stock was up 4.6% from its pre-results close, while by five sessions it was down 2.4%. The Telecom–Infrastructure industry median fell 2.9% on the reaction day, 6.8% by the next day and 9.3% over five sessions.
HFCL’s reaction-day move was 7.9 percentage points above the industry median, compared with the Nifty Smallcap 250 down 1.1%. The excess return was 11.4 percentage points by the next day and 7.0 percentage points over five sessions. Earlier reaction-day moves were mixed, including 8.4% on 30 April 2026, negative 0.4% on 22 July 2026 and negative 2.5% on 17 October 2025.
| After the filing | Stock | Telecom - Infrastructure median |
|---|---|---|
| 5 minutes | +0.1% | |
| 15 minutes | +1.7% | |
| 30 minutes | +1.9% | |
| Reaction day | +5.0% | −2.9% |
| Next day | +4.6% | −6.8% |
| 5 days | −2.4% | −9.3% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 22 July 2026 | −0.4% |
| 30 April 2026 | +8.4% |
| 3 February 2026 | +3.4% |
| 17 October 2025 | −2.5% |
| 25 July 2025 | −4.1% |
| 22 May 2025 | +3.0% |
| 3 February 2025 | −0.6% |
| 21 October 2024 | −6.9% |
Source: MarketPing price-reaction measurement.
Quick answers
What was HFCL's revenue in Q2 FY27?
Revenue from operations was ₹2,542 crore, up 143.6% from ₹1,043 crore in Q2 FY26 (consolidated).
Did HFCL make a profit in Q2 FY27?
Yes. Net profit was ₹394.22 crore, against a net profit of ₹71.92 crore in Q2 FY26.
What was HFCL's EPS in Q2 FY27?
Basic earnings per share were ₹2.37, against ₹0.47 in Q2 FY26.
How did HFCL shares react to the Q2 FY27 results?
On the reaction day the stock moved +5.0% from the previous close; the median Telecom - Infrastructure stock moved −2.9%.
When did HFCL announce its Q2 FY27 results?
On 19 October 2026, in a filing to the BSE.
Sources
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
This is information, not investment advice. MarketPing does not recommend buying or selling any security.