HFCL (HFCL) Q2 25/26 earnings summary

Executive summary

• Achieved strong Q2 FY26 results with consolidated revenue of ₹1,043.34 crore, up from ₹871 crore in Q1 FY26, though slightly down from ₹1,093 crore in Q2 FY25.

• EBITDA rose to ₹203.37 crore (19.49% margin), up from ₹140.29 crore in Q1 and ₹171 crore in Q2 FY25.

• PAT reached ₹71.92 crore, reversing a Q1 loss and nearly matching Q2 FY25's ₹73 crore.

• Entering a transformative growth phase with innovation, scale, and expanded product portfolio in telecom and defence.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY26, with no material misstatements noted.

Financial highlights

• Q2 FY26 consolidated revenue: ₹1,043.34 crore (Q1 FY26: ₹871 crore; Q2 FY25: ₹1,093 crore).

• EBITDA: ₹203.37 crore (Q1 FY26: ₹140.29 crore; Q2 FY25: ₹171 crore); EBITDA margin: 19.49%.

• PAT: ₹71.92 crore (Q1 FY26: -₹29.31 crore; Q2 FY25: ₹73 crore); PAT margin: 6.89%.

• H1 FY26 revenue: ₹1,914.36 crore, down 14.99% YoY; EBITDA: ₹246.30 crore, down 31.05% YoY.

• Basic and diluted EPS for Q2 FY26 were ₹0.47 (consolidated) and ₹0.42 (standalone).

Outlook and guidance

• Maintains 20% revenue growth guidance for FY26.

• Expects defense revenue to exceed ₹500 crore in FY27, with potential to reach four figures in subsequent years.

• Anticipates meaningful order inflows from BharatNet and new telecom circles.

• Focus on high-margin product revenue and private/export customers for improved margins and revenue stability.

• EBITDA margin expected to remain around 19% for the next two quarters.