HFCL Jumps 5% as Q2 Profit Hits Record Rs 394 Crore

HFCL shares rose 5% to Rs 268.81 on Monday, near the 52-week high of Rs 275.91, after the telecom equipment maker reported its best-ever quarter, with profit after tax up more than fourfold to Rs 394 crore and management lifting its full-year growth outlook. Revenue for the September quarter rose 143.6% year on year, and 32.7% from June, to Rs 2,541.79 crore. EBITDA jumped 223.6% to Rs 658 crore at a margin of 25.9%, while profit after tax climbed 448% to Rs 394.22 crore. Half-year profit reached Rs 639.86 crore. The order book grew to Rs 28,900 crore from about Rs 26,000 crore despite roughly Rs 2,500 crore of deliveries. Management raised its FY27 revenue growth outlook to at least 80%, from 40% after the first quarter, and said it does not see this quarter as a peak. Growth at this pace is unusual for a listed manufacturer, and management says about 70% of the optical fibre and data centre interconnect order book comes from hyperscalers, mostly export orders, tying the story to global data centre spending. The weak spot was the EPC segment, which posted a loss of about Rs 121 crore, with a return to profit targeted for the first quarter of FY28. Defence revenue is targeted at Rs 500 to 600 crore this year and at least Rs 2,000 crore in FY28. The stock has ranged between Rs 59.82 and Rs 275.91 over the past 52 weeks, with a market cap of around Rs 41,144 crore, after a rally of more than fourfold from its low. Tuesday’s trading will show whether investors see more room to run or start booking profits at these levels. Disclosure: Palash Kag, Proprietor, Sarathi Research (SEBI Reg. No. INH000012740). No position held in HFCL. This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Please consult a registered advisor before making investment decisions.