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Revenue
₹1,210.79 Cr
verified against source
Revenue YoY
19.65%
reported change
EBITDA
₹243.52 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
HFCL reported a strong Q3 FY26 with consolidated revenue of INR 1,211 crore (+19.6% YoY), EBITDA of INR 244 crore (+41.7% YoY), and PAT of INR 102 crore (+41% YoY). EBITDA margin expanded to 20.1%, driven by a favorable product mix shift toward high-margin optical fiber cables (OFC) and exports. Export revenue share surged to 27% from 14% a year ago, supported by $192 million in export orders. Management highlighted robust demand from hyperscale data centers for high-fiber-count cables, with OFC realizations rising ~10% QoQ to INR 1,065/fkm. Capacity expansion is on track: fiber capacity to reach 42.36 million fkm by June 2026. The order book stood at INR 11,125 crore. Guidance for FY27 includes OFC revenue of ~INR 3,500 crore and defense revenue of INR 400-500 crore. A key risk is the ongoing tariff uncertainty in the US market, which caused shipment delays in early Q3.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects OFC segment revenue to cross INR 3,500 crore in the next financial year, up from an estimated INR 2,400 crore in FY26.
- Defense line of products is expected to contribute INR 400-500 crore in revenue next year, driven by fuze, radar, and ammunition orders.
- Operations and maintenance revenue is expected to grow to INR 400-500 crore per annum within 2-3 years, starting with Army NFS O&M of INR 170 crore per year from April 2026.
- Pre-Connected Solutions for data centers is expected to contribute INR 400-500 crore of additional revenues over the next two financial years.
Risks flagged
- Early Q3 saw shipments stuck at US ports due to tariff classification ambiguity, leading to demurrage costs and revenue deferment. While conditions stabilized from mid-December, further trade policy changes remain a risk.
- Electronic fuses failed final trials in January 2026; retesting is scheduled for April. Any further delay could push defense revenue recognition beyond FY27.
- Preform prices are expected to rise 20-25%, and while current contracts are honored, future cost increases could pressure margins if not passed through.
- Promoter stake has declined from 39% to 28% over three years due to multiple equity raises. Further dilution could impact shareholder sentiment.
Key quotes
- We are today amongst a limited set of global players capable of delivering very high fiber count and low latency solution at a scale.
- The problem was the ammunition, which is now being available. Thus, it would not take that much time.
- We are intentionally not doing much of EPC, because that's not the area we are much interested. We are more interested in defense business, fiber optic cable business, telecom equipment business.
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