HFCL shares rise 3% after Q4 results; expects 25–30% revenue growth in FY26

Synopsis

HFCL Q4FY25 results showed a net loss of Rs 81.4 crore due to weak optical fibre cable demand. Despite challenges, HFCL expects 25–30% revenue growth in FY26, driven by full capacity utilisation and defence segment contributions. The company also announced a 10% dividend and a new senior appointment in international sales.

HFCL shares rose 3% to Rs 87 in intraday trade on Friday on the BSE after the telecom and defence equipment maker reported its Q4FY25 earnings. The company posted a net loss of Rs 81.4 crore, compared to a profit of Rs 110 crore in the same quarter last year, mainly due to weak demand for optical fibre cables (OFC).

Revenue for the quarter declined 39.6% year-on-year to Rs 800.7 crore, from Rs 1,326 crore a year ago. EBITDA turned negative at Rs 36 crore, against a positive EBITDA of Rs 195.5 crore in the year-ago period.

The board has approved a 10% dividend of Rs 0.10 per equity share for FY25, subject to shareholder approval at the upcoming annual general meeting.

Despite financial challenges, HFCL Managing Director, Mahendra Nahata remained optimistic, "FY25 was a year of both strategic advancement and transitional challenges. While our financial performance was impacted by the downturn in optical fibre cable demand, margin pressure from newly-launched telecom products, and slower customer offtake in our EPC business, we remained focused on strengthening the foundations for long-term growth."

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HFCL expects strong revenue growth in FY26, supported by improving domestic and global demand for optical fibre and OFC.

Nahata noted that the fibre manufacturing plant, which was operating at 45% capacity, is now running at full capacity. The OFC plant, previously at 40% utilisation, is expected to hit full capacity by July 2025.

The company also expects contributions from the defence segment starting Q2FY26, amid growing interest in ground surveillance radar, electronic fuses, and a newly developed drone detection radar slated for production this year. HFCL recently secured a Rs 44.36-crore tactical cable order from the Indian Army through its subsidiary HTL Limited.

With a strong order book and full capacity utilisation, HFCL is targeting 25–30% revenue growth in FY26.\

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Additionally, HFCL has appointed Bhunvesh Sachdeva as Senior Vice President – International Sales for its communication products business, effective May 22, 2025, following the recommendation of the Nomination, Remuneration, and Compensation Committee.

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