HFCL profit jumps as revenue and margins expand

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 HFCL Limited (

) reported consolidated net profit of ₹394.22 crore in Q2 FY27, up 448.14% year-on-year from ₹71.92 crore. Revenue from operations surged 143.62% to ₹2,541.79 crore. What happened? EBITDA increased 223.55% year-on-year to ₹658 crore, while the EBITDA margin expanded by 640 basis points to 25.89%. The company attributed its performance to stronger business momentum and growing demand across its operations. HFCL's order book stood at approximately ₹28,911 crore, providing multi-year revenue visibility. The company also expects FY27 revenue to grow by at least 80% over FY26. Why does it matter? Demand for optical fibre cables and connectivity solutions is expanding alongside telecom networks, AI infrastructure and hyperscale data centres. HFCL is also pursuing opportunities in defence and aerospace. However, a large order book does not automatically translate into revenue or cash flow. Execution, capacity expansion and cost management will be important. My view The quarter reflects strong growth in both revenue and profitability. The key test is whether HFCL can sustain this momentum while converting its order book into timely deliveries and cash generation. What I am watching next I would track order execution, margins, working-capital requirements, progress on planned manufacturing investments and the company's ability to deliver its FY27 growth outlook. No Recommendations Source: The Economic Times Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in HFCL Limited.