HFCL (HFCL) Q4 2026 earnings summary

Executive summary

• Achieved record annual and quarterly performance in FY26, with revenue up 21.77% year-over-year and significant margin expansion, reflecting strategic transformation and improved business mix.

• Order book reached an all-time high of ₹21,206 crore, with 58% exports, providing strong multi-year revenue visibility and a strategic shift toward high-margin product revenues and private sector clients.

• Major milestones included a multi-year overseas OFC supply agreement, doubling of optical fiber capacity, and entry into the defence aerospace segment with a confirmed export order book of ₹1,930 crore.

• Strategic focus on expanding global footprint, product innovation, and defence sector growth drove results.

Financial highlights

• FY26 consolidated revenue: ₹4,949.27 crore (up from ₹4,064.52 crore in FY25); EBITDA: ₹826.75 crore (16.70% margin); PAT: ₹329.44 crore (6.66% margin).

• Q4FY26 revenue: ₹1,824.12 crore (up 128% YoY); EBITDA margin: 18.47%; PAT: ₹184.45 crore; PAT margin: 10.11%.

• Export revenue surged to ₹2,047 crore (41.36% of total) in FY26, up from ₹497 crore (12.23%) in FY25.

• EPS (diluted) for FY26 was ₹2.13, up from ₹1.23 in FY25.

• Recommended dividend of 20% (₹0.20 per share) for FY26.

Outlook and guidance

• Management expects 20%-25% revenue growth for FY27, with 3%-4% margin expansion, driven by capacity increases and high-value product mix.

• Data centre interconnect solutions expected to contribute ₹400 crore in FY27 and ₹800 crore in FY28.

• Defence and aerospace to contribute 10%-12% of revenue or ₹500-600 crore in FY27.

• CapEx planned at ₹600 crore for FY27 and ₹350 crore for FY28.

• Targeting over ₹10,000 crore revenue and 20-21% EBITDA margin by FY29, with product revenue expected to exceed 80% and export share to surpass 50% by FY27.