- Revenue jumps nearly 20% QoQ to ₹1,043 crore; PAT swings to ₹71.9 crore profit from loss
Record export wins and new Defence Manufacturing Facility underscore transformation into global tech powerhouse
NE BUSINESS BUREAU
NEW DELHI, OCT 18
HFCL Limited (HFCL), a leading technology enterprise in the telecom and defence sectors, reported a stellar performance in the second quarter of FY26, marked by a sharp rebound in profitability, robust operational execution, and accelerating international business growth.
The company clocked consolidated revenue of ₹1,043.34 crore, up 19.78% quarter-on-quarter, while EBITDA surged nearly fivefold to ₹203.37 crore from ₹42.93 crore in Q1 FY26. The EBITDA margin expanded to 19.49%, a dramatic rise from 4.93% in the previous quarter. Profit after tax (PAT) turned positive at ₹71.92 crore, marking a strong turnaround from a ₹29.30 crore loss in Q1.
Consolidated Financial Highlights – Q2 FY26
| Particulars | Q2 FY26 (₹ crore) | Q1 FY26 (₹ crore) | QoQ % | Q2 FY25 (₹ crore) | YoY % |
| Revenue | 1,043.34 | 871.02 | 19.78% | 1,093.61 | -4.60% |
| EBITDA | 203.37 | 42.93 | 373.72% | 171.82 | 18.36% |
| EBITDA Margin | 19.49% | 4.93% | +1,456 bps | 15.71% | +378 bps |
| PAT | 71.92 | -29.30 | 345.46% | 73.33 | -1.92% |
| PAT Margin | 6.89% | -3.36% | +1,025 bps | 6.71% | +18 bps |
HFCL’s international business emerged as a key growth driver, contributing 28% of total revenue in Q2 FY26, up from 24% in Q1 FY26 and 10% a year ago. This expansion reflects HFCL’s fast-growing global footprint and its strengthening partnerships across Europe, the US, the Middle East, and Asia Pacific.
The quarter saw record export orders and strong momentum in the defence electronics portfolio, validating the company’s diversification strategy. Key highlights included orders for Thermal Weapon Sights and participation in the BMP-2 Armoured Vehicle upgrade tender for the Indian Army — showcasing HFCL’s growing expertise in high-technology defence solutions.
A major milestone during the quarter was the allocation of land by the Government of Andhra Pradesh for HFCL’s proposed Defence Manufacturing Facility, which will produce Artillery Ammunition Shells and Multi-Mode Hand Grenades (MMHG). This strategic initiative strengthens HFCL’s expansion beyond telecom into the rapidly evolving defence manufacturing ecosystem.
Commenting on the results, Mahendra Nahata, Managing Director, HFCL, said: “Our Q2 results reflect the power of strategic execution and our innovation-driven transformation. The strong recovery in margins and profitability, combined with growing international demand and breakthrough achievements in defence, affirm our evolution into a global technology enterprise. The proposed Defence Manufacturing Facility is a testament to our commitment to India’s self-reliance and global leadership in advanced technologies.”
