HFCL Q2 Results: Profit zooms 448% YoY to Rs 394 crore; stock hits 5% upper circuit

HFCL reported a 448% year-on-year jump in Q2FY27 net profit to Rs 394 crore.

HFCL stock hit a 5% upper circuit to Rs 268.70 on the BSE. The stock is up nearly 300% this year.

The company’s revenue from operations came in at Rs 2,542 crore, higher by 144% from Rs 1,043 crore posted in the year-ago period, the company said in a regulatory filing. Sequentially, revenue improved 33%.

EBITDA surged 223.55% YoY and 47.78% QoQ to Rs 658 crore, while the EBITDA margin expanded 640 bps YoY and 264 bps QoQ to 25.89%.

The order book exceeds Rs 28,900 crore, with a strong pipeline providing revenue visibility for six to seven years and beyond. The company expects FY27 revenue to grow by at least 80% over FY26, driven by existing business visibility and strong momentum.

The company plans to invest around Rs 1,800 crore in optical fibre, cable and preform manufacturing to expand capacity and deepen integration. Its defence and aerospace business remains on track to achieve its FY27 revenue target of around Rs 500 crore.

HFCL Managing Director Mahendra Nahata said the company delivered its best-ever quarterly performance, reflecting the growing scale and momentum of its business. He said the order book of over Rs 28,900 crore provides multi-year revenue visibility, with a strong pipeline of orders at advanced stages.

Demand is accelerating across AI infrastructure, hyperscale data centres and telecom networks, while opportunities with international hyperscalers and telecom operators are increasingly converting into firm contracts. Based on current business visibility, HFCL expects FY27 revenue to grow by at least 80% over FY26.

Nahata said the defence and aerospace business is expected to become a key growth driver for HFCL, with a portfolio spanning thermal weapon sights, electronic fuzes, surveillance radars, multi-mode hand grenades and aerostructures. The acquisition of the aerospace business is expected to be completed in the current quarter, strengthening the company's capabilities in the sector. HFCL remains on track to achieve defence revenue of around Rs 500 crore in FY27.

He added that optical fibre cables and connectivity solutions, telecom, and defence and aerospace will form the key pillars of HFCL's growth strategy. Together, these businesses are expected to diversify revenue streams, strengthen resilience and support sustainable growth in revenue and profitability over the coming years.