The shares of this telecom manufacturer surged by 3 percent on Friday, despite posting poor financial results. In this article, we will dive deep into its financial performance and try to find some reasons why it went up today.
With a market capitalisation of 12,593 crores, the shares of HFCL Ltd are currently trading at Rs 87.3 per share, down by 49 percent from its 52-week high of Rs 171 per share. Over the last five years, the stock has delivered a multibagger return of 883 percent.
Financial Highlights
HFCL reported a consolidated revenue of Rs 4,065 crores in FY25, down 8.95 percent from Rs 4,465 crores in FY24. On a year-on-year basis, revenue declined 39.60 percent to Rs 801 crores in Q4 FY25 from Rs 1,326 crores in Q4 FY24. On a quarterly basis, revenue fell 20.84 percent from Rs 1,012 crores in Q3 FY25.
The company posted a net profit of Rs 173 crores in FY25, down 48.82 percent from Rs 338 crores in FY24. In Q4 FY25, it reported a net loss of Rs 83 crores, compared to a net profit of Rs 109 crores in Q4 FY24 and Rs 73 crores in Q3 FY25.
Additionally, the board of directors approved a 10 percent dividend for FY25 at Rs 0.10 per equity share, subject to shareholder approval at the annual general meeting.
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Reason behind the dip in business
Managing Director Mahendra Nahata pointed out that the drop in revenue is mainly due to a decrease in demand for optical fibre cables, pressure on margins from new telecom products, and a slower-than-expected customer adoption in the EPC business.
Despite the poor financial performance, the company has a robust order book of Rs 9,967 crores in FY25, which increased by 29.7 percent from its previous year.
Future Outlook
Management mentioned that the fibre manufacturing plant has increased its output from 45% to full capacity, and the OFC plant is on track to achieve full utilization by July 2025.
The company expects to see contributions from the defence segment starting in Q2FY26, thanks to new radar and drone detection products. Recently, HFCL landed a tactical cable order worth Rs 44.36 crore from the Indian Army and is aiming for a revenue growth of 25–30 percent in FY26.
HFCL Limited is a global telecom products and solutions provider based in India. It manufactures optical fiber cables, telecom equipment, and defense communication products like Wi-Fi access points, routers, 5G solutions, electronic fuzes, and surveillance radars. The company also supplies networking components and offers solutions for telecom, defense, and railway communications. HFCL has partnered with Qualcomm to develop advanced 5G products.
Written by Satyajeet Mukherjee
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