HFCL Limited has announced its financial results

HFCL Limited has announced its financial results for the second quarter ended September 30, 2025. The telecom gear manufacturer reported a decline in key metrics on a year-on-year (YoY) basis, while showing sequential growth. Net profit for Q2 FY26 decreased by 8.24% YoY to ₹67.9 crore, compared to ₹74 crore in the same period last year. Revenue for the quarter stood at ₹1,043 crore, a 4.6% reduction from the prior year's ₹1,093 crore. Despite the YoY declines, the company demonstrated strong operational efficiency and sequential momentum. Revenue rose 19.8% on a sequential basis from ₹871 crore in the June quarter. Furthermore, Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 19.9% YoY to ₹190 crore. This contributed to a significant improvement in the EBITDA margin, which expanded by 370 basis points, reaching 18.2% from 14.5% a year earlier. In a positive development for future revenue, HFCL secured a significant international order valued at ₹281.20 crore for the supply of optical fibre cables. The order is slated for execution by December 2026. The management highlighted that this order "reaffirms the trust our global customers place in the company’s manufacturing capabilities, technological excellence and product quality." Separately, the company is proceeding with the divestment of its entire 15.19% stake in Nivetti Systems Private Limited. The stock's performance reflects the mixed results, with shares down over 1% today, though they have gained 1.40% over the past month. The year-to-date return stands at a decline of 33.21%.