HFCL reports Q4 loss; expects 25-30% revenue growth in FY26

HFCL Ltd, specialising in telecom and defence gear, posted a net loss of ₹81.4 crore for Q4FY25 against a profit of ₹110 crore year-on-year, impacted by lower optical fibre cable (OFC) demand.

Quarterly revenue declined 39.6% year-on year (YoY) to ₹800.7 crore, down from ₹1,326 crore. The company saw a negative EBITDA of ₹36 crore. In the fourth quarter of the previous fiscal, EBITDA stood at ₹195.5 crore.

For the full year, PAT (profit after tax) tumbled 49% to ₹173.26 crore from ₹337.52 crore in FY24. Annual revenue from operations slipped to ₹4,064 crore from ₹4,465 crore.

The board of directors approved a 10% dividend for FY25 at ₹0.1 per equity share, subject to shareholder approval at the annual general meeting.

Despite financial challenges, HFCL Managing Director, Mahendra Nahata remained optimistic, "FY25 was a year of both strategic advancement and transitional challenges. While our financial performance was impacted by the downturn in optical fibre cable demand, margin pressure from newly-launched telecom products, and slower customer offtake in our EPC business, we remained focused on strengthening the foundations for long-term growth."

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FY26 bounce-back expected

The company anticipates substantial revenue growth in FY26, driven by increased domestic and global demand for optical fibre and OFC.

Nahata added, "The fibre manufacturing plant, previously at 45% utilisation, now operates at full capacity, while the fibre optic cable plant, which was at 40% utilisation, is expected to reach full capacity by July 2025."

HFCL said the defence sector is expected to contribute revenue from Q2, with rising global interest in ground surveillance radar, electronic fuses, and a new drone detection radar, slated for production this year. The company has already secured a ₹44.36-crore order in March from the Indian Army for tactical cable, via its subsidiary HTL Limited.

With a strong order book, growing demand, and full capacity utilisation, HFCL expects 25-30% revenue growth in the current financial year.

Additionally, HFCL has appointed Bhunvesh Sachdeva as senior vice president of international sales for communication business products, effective May 22, 2025, based on the Nomination, Remuneration, and Compensation Committee’s recommendation.

HFCL shares settled 0.75% lower on the BSE, quoting at ₹84.50 apiece.

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