HFCL Limited has achieved a defining milestone, reporting consolidated annual revenue of ₹4,949.27 crore and EBIDTA of ₹826.75 crore for the financial year ended March 31, 2026. The company reached a record-high order book of ₹21,200 crore, driven by strong demand across optical fiber cables, defense, and data center solutions. Management remains optimistic, targeting 20% to 25% revenue growth for the coming year, supported by strategic backward integration and expansion into the aerospace sector.
Annual Financial Highlights
For the financial year 2026, HFCL reported robust financial growth. Consolidated revenue climbed to ₹4,949.27 crore compared to ₹4,064.52 crore in the previous year. Profit after tax also saw a significant jump to ₹329.44 crore from ₹173.26 crore in FY25. The fourth quarter (January-March 2026) was particularly strong, with revenue reaching ₹1,824.12 crore and an EBITDA margin of 18.47%.
Record Order Book and Revenue Visibility
The company enters the new fiscal year with an all-time high order book of ₹21,200 crore. This includes a landmark global optical fiber cable supply contract valued at approximately USD 1.1 billion (₹10,159 crore), providing substantial multi-year revenue visibility. Management emphasized that 58% of the total order book now consists of export orders, highlighting a successful diversification strategy.
Strategic Initiatives and Expansion
HFCL is aggressively pursuing structural growth through several key initiatives:
- Backward Integration: Construction of a new ₹580 crore Preform manufacturing facility to strengthen margin profiles and supply chain resilience.
- Defense and Aerospace: The consolidation of defense capabilities under HFCL Advance Systems Private Limited, coupled with the acquisition of an aerospace business, expands the company’s portfolio into high-barrier entry segments.
- Data Center Interconnect: Significant scaling of manufacturing capacity for interconnect solutions, projected to contribute ₹400 crore in additional revenue in FY27 and ₹800 crore in FY28.
Operational Outlook
Management has expressed confidence in sustained growth, anticipating a 20% to 25% revenue increase for the current year. Operational efficiency is expected to improve as EPC business losses are mitigated through the conversion of legacy projects into maintenance contracts. Furthermore, the company expects a 3% to 4% improvement in blended EBITDA margins, driven by a higher mix of value-added products and increased operational scale.
Source: BSE
