HFCL posts ₹29.30 crore net loss in Q1FY26; board approves ₹700 crore fundraise
HFCL
on Friday reported a net loss of ₹29.30 crore in the first quarter of fiscal year 2026 (Q1FY26), declining by 126.48% year-on-year from a net profit of ₹110.65 crore in the corresponding quarter a year ago.
On a sequential basis, however, HFCL's net loss narrowed by 64.83%, from ₹83.30 crore in Q4FY25 to ₹29.30 crore in Q1FY26.
'While PAT (profit after tax) stood at ₹(29.30) crores, the performance marked significant operational improvement, and laid the foundation for a strong FY26,' HFCL said in its earnings statement.
HFCL's revenue, however, declined by 24.80% year-on-year to ₹871.02 crore in the April-June quarter of FY26, but increased by 8.78% quarter-on-quarter.
'Despite macroeconomic headwinds, the company recorded revenue of ₹871 crores in Q1 FY26, up from ₹801 crore in Q4 FY25, and reported a sharp recovery in EBITDA (earnings before interest, taxes, depreciation and amortisation) at ₹42.93 crores compared to a loss in the previous quarter,' HFCL said.
The company's board separately approved fundraising of ₹700 crore in one or multiple tranches, to leverage emerging growth opportunities in the defence and telecom sectors, including strategic investments, and to further strengthen the company's capital base and financial position.
HFCL's shares closed 4.2% lower at ₹75.92 on the Bombay Stock Exchange (BSE) Friday.
The Delhi-based domestic vendor said after several muted quarters, its OFC business rebounded strongly in Q1FY26, driven by ₹300 crore worth of new export orders and ₹210 crore in export revenues. It also won product approvals from several new international clients and received repeat orders from leading global customers, particularly across Europe and Asia.
To cater to rising demand from hyperscale data centres and digital infrastructure globally, HFCL's Board approved the expansion of Intermittently Bonded Ribbon (IBR) cable capacity from 1.73 million to 19.01 million fibre kilometres per annum, increasing total OFC capacity to 42.36 million fkm per annum.
According to the statement, HFCL achieved a major milestone by developing and commercially deploying indigenous MPLS routers, securing ₹650 crore in orders under BharatNet Phase III, and also bagging a repeat order worth ₹175 crore for its 5G networking gear from a domestic telecom operator.
'Q1 FY26 has set a strong foundation for what we believe will be a breakout year for HFCL, with 66% of our revenue coming from the product segment and exports contributing 24% to the total revenue. We expect this positive momentum to continue and strengthen in the upcoming quarters,' said Mahendra Nahata, managing director (MD), HFCL.
'We remain confident in our ability to deliver sustained value to all stakeholders in FY26 and beyond,' Nahata added.
According to a company statement, the proceeds from the proposed fundraising will, inter alia, be strategically deployed to support various initiatives central to the company's growth agenda, including expansion through organic and inorganic means, acquisitions in related space, new business opportunities, and other strategic initiatives, repayment of debt, working capital, general corporate purposes.
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