HFCL (HFCL) Q2 26/27 earnings summary

Executive summary

• Best-ever Q2 FY27 performance, with consolidated revenue of ₹2,541.79 crore and PAT of ₹394.22 crore; margins strengthened and multi-year demand visibility expanded.

• Order book reached ₹28,911 crore; new orders exceeded quarterly deliveries, while advanced opportunities and international contracts support long-term visibility.

Financial highlights

• Q2 revenue from operations was ₹2,541.79 crore, up 143.62% YoY and 32.73% QoQ; total income was ₹2,569.25 crore.

• Q2 EBITDA was ₹658 crore, up 223.55% YoY; PBT was ₹538.60 crore, up 406.49% YoY, and PAT was ₹394.22 crore, up 448.14% YoY.

• H1 revenue was ₹4,456.77 crore, up 132.81% YoY; PBT was ₹870.12 crore and PAT ₹639.86 crore, versus ₹61.64 crore and ₹42.62 crore in H1 FY26.

• H1 EBITDA was ₹1,103.27 crore; consolidated operating cash flow was ₹455.27 crore versus an outflow of ₹43.60 crore in H1 FY26.

• Export performance grew ~493% YoY; Q2 results were not driven by an exceptional one-off or unusually high-margin event.

Outlook and guidance

• FY27 revenue growth guidance rose to at least 80% over FY26, from an initial ~20% aspiration and a subsequent 40% outlook; ₹10,000 crore revenue is expected before FY29.

• Q3 revenue is expected to grow QoQ, with revenue and profitability improving further, subject to major geopolitical disruptions.

• Connectivity solutions revenue is projected at ₹800 crore in FY27 and ₹2,000 crore in FY28, with growth expected in revenue and margins.

• Defence revenue target is ₹500–600 crore in FY27, at least ₹2,000 crore the following year, with an aspiration of ~₹5,000 crore within three years.

• Strategic priorities include >27% EBITDA margin by FY29, ~90% revenue from products and >70% from exports by FY27; growth outlook extends six to seven years and beyond.