HFCL reported a notable recovery in its second-quarter results for FY26, driven by higher export orders and a rebound in profitability. The company’s EBITDA rose nearly fivefold sequentially, supported by improving margins and stronger contributions from its international and defence portfolios.
For the quarter ended September 2025, HFCL recorded consolidated revenue of Rs 1,043.34 crore, a 19.78 per cent increase compared to Rs 871.02 crore in Q1 FY26. The company’s EBITDA stood at Rs 203.37 crore, up from Rs 42.93 crore in the previous quarter, translating to an EBITDA margin of 19.49 per cent, against 4.93 per cent in Q1. Profit after tax (PAT) turned positive at Rs 71.92 crore, recovering from a loss of Rs 29.30 crore in the preceding quarter.
On a year-on-year basis, revenue declined 4.6 per cent from Rs 1,093.61 crore in Q2 FY25, while EBITDA grew 18.36 per cent from Rs 171.82 crore. PAT was marginally lower than the Rs 73.33 crore reported in the same period last year.
HFCL’s international business contributed 28 per cent of total revenue during the quarter, compared to 24 per cent in Q1 FY26 and 10 per cent in Q2 FY25. The company stated that this growth reflects expanding operations across Europe, the US, the Middle East, and the Asia-Pacific region.
The company also reported progress in its defence segment, citing new orders for Thermal Weapon Sights and participation in the Indian Army’s tender for upgrading 811 BMP-2 Armoured Fighting Vehicles. These developments align with HFCL’s diversification strategy into defence electronics and advanced manufacturing.
A key development in the quarter was the Andhra Pradesh government’s allocation of land for HFCL’s proposed defence manufacturing facility, which will focus on producing artillery ammunition shells and multi-mode hand grenades. The facility aims to strengthen the company’s manufacturing base within India’s expanding defence sector.
Managing Director Mahendra Nahata said the results demonstrated the company’s focus on execution and innovation, with improved profitability supported by both the telecom and defence verticals. HFCL continues to pursue growth opportunities through exports and participation in India’s defence manufacturing initiatives. |
