SYNOPSIS:
HFCL secured a $32 million export order, posted 20 percent QoQ revenue growth in Q2 FY26, expanded manufacturing and defence capabilities, and strengthened its global presence through advanced telecom and optical fibre technologies.
During Friday’s trading session, shares of a leading player in the telecom, defence, and enterprise connectivity ecosystems are in focus on the stock exchanges, after securing an export order worth Rs. 281.2 crores from an undisclosed international customer and reporting Q2 FY26 results.
At 03:27 p.m., shares of HFCL Limited were trading in red at Rs. 75.4 on BSE, down by around 2.5 percent, compared to its previous closing price of Rs. 77.35, with a market cap of Rs. 10,909 crores. The stock has delivered negative returns of around 43 percent in the last one year, and has fallen by nearly 10 percent in six months.
What’s the News
According to the latest stock exchange filings, HFCL Limited has secured an export order worth nearly $32.02 million (equivalent to around Rs. 281.2 crore), for the supply of optical fibre cables, through its overseas wholly owned subsidiary, from a renowned international customer. The order is expected to be executed by December 2026.
Further, for Q2 FY26, the company reported a consolidated net revenue from operations of Rs. 1,043.3 crores, reflecting a sequential growth of around 20 percent QoQ compared to Rs. 871 crores in Q1 FY26, but a year-on-year decrease of about 5 percent from Rs. 1,093.6 crores recorded in Q2 FY25.
Net profit stood at Rs. 72 crores, indicating a marginal fall of about 2 percent YoY from Rs. 73.33 crores in Q2 FY25, but marking a notable turnaround from a net loss of Rs. 29.3 crores in Q1 FY25.
International business emerged as a strong driver of growth, contributing 28 percent of the total revenue in Q2 FY26 compared to 24 percent in Q1 FY26 and 10 percent in Q2 FY25. This marks HFCL’s growing global footprint and reinforces its position as a trusted partner for telecom and technology companies across Europe, US, the Middle East, and the Asia Pacific.
Order Book & More
During the quarter, HFCL achieved major export wins and strong traction in its defence electronics portfolio, reflecting the successful execution of its diversification strategy. Key milestones included orders for Thermal Weapon Sights and participation in the upgradation tender for 811 BMP-2 Armoured Fighting Vehicles for the Indian army, highlighting the Company’s growing strength in high-technology defence solutions.
HFCL reported an order book of Rs. 9,981 crores in Q2 FY26, reflecting a sequential decline of around 5 percent from Rs. 10,480 crores in Q1 FY26. Of the total order book, the Network Services segment make up Rs. 3,441 crores (34 percent), the O&M segment contributed Rs. 3,565 crores (36 percent), and the Products segment contributed Rs. 2,975 crores (30 percent).
As part of its expansion plan, HFCL is increasing the manufacturing capacity of Optic Fiber from 28.0 million fibre kilometres per annum (fkm p.a.) to 33.9 million fkm p.a.. Similarly, the Optical Fiber Cable capacity is planned to expand from 30.5 million fkm p.a. to 42.3 million fkm p.a.. Further, the Andhra Pradesh government has sanctioned 1,000 acres of land for the company to establish an integrated defence manufacturing facility dedicated to producing artillery shells and multi-mode hand grenades.
The company is actively expanding its global footprint through advanced optical fibre technologies, next-generation telecom products, and strategic export partnerships. In the defence segment, HFCL continues to gain momentum with indigenously developed solutions such as electronic fuzes and drone detection radars, alongside the upcoming integrated manufacturing facility in Andhra Pradesh dedicated to producing critical ammunition and other defence equipment.
HFCL Limited is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment, optic fibre and optic fibre cable (OFC).
The company has developed capabilities to provide premium quality optical fibre and OFC, advanced telecom products, including 5G Radio Access Network (RAN) products, 5G Transport Products, Wi-Fi systems (Wi-Fi 6, Wi-Fi 7), high capacity backhaul radios, switches, routers and defence electronics products viz. thermal weapon sights, electronic fuzes, high-capacity radio relay and surveillance radars.
HFCL operates advanced manufacturing facilities in Hyderabad, Goa, Chennai (through its subsidiary HTL Limited) and Manesar for telecom and networking products, and Hosur for defence equipment.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
