HFCL (HFCL) Q1 26/27 earnings summary

Executive summary

• Achieved record Q1 FY27 revenue and profitability, with robust order inflows and growth across optical fiber, defense, aerospace, and digital infrastructure segments.

• Strategic investments in technology, manufacturing, and R&D, including capacity expansions in optical fiber, cables, and data center connectivity, are progressing on schedule.

• Board approved unaudited standalone and consolidated financial results for Q1 FY27, with no material misstatements noted.

• Positioned at the intersection of AI, data centers, cloud, and defense modernization, leveraging a diversified portfolio and technology leadership.

• Focus remains on global expansion, innovation, and financial discipline for sustainable value creation.

Financial highlights

• Q1 FY27 revenue: ₹1,914.98 crore (up from ₹871.02 crore YoY and ₹1,824.12 crore QoQ), with 119.85% YoY and 4.98% sequential growth.

• EBITDA: ₹445.27 crore (vs. ₹42.93 crore YoY and ₹336.93 crore QoQ); EBITDA margin at 23.25% (vs. 4.93% YoY and 18.47% QoQ).

• Profit after tax: ₹245.64 crore (vs. loss of ₹29.30 crore YoY and profit of ₹184.45 crore QoQ); PAT margin at 12.83%.

• EPS (diluted) increased to ₹1.49 from ₹1.21 in the previous quarter.

• Total comprehensive income for Q1 FY27 was ₹317.80 crore.

Outlook and guidance

• FY27 revenue growth guidance raised to 40% due to strong order inflows and favorable industry dynamics.

• EBITDA margin expected to remain above 20% for FY27, with Q1 already at 23.25%.

• Targeting EBITDA margin of 22-25% by FY29, focusing on higher-margin products and export growth.

• Defense and aerospace revenue target of ₹500 crore for FY27, with plans to exceed ₹3,000 crore by FY29.

• Data center connectivity business expected to generate ₹800 crore in revenue in its first year, with capacity expansion underway and new facility to be commissioned by September 2027.