HFCL Limited (HFCL), a leading technology enterprise focused on telecom, digital infrastructure and defence, reported steady operational progress during the third quarter of FY26. The quarter was marked by strong export momentum, an improving revenue mix, sustained order inflows, continued capacity expansion, and meaningful advances in defence indigenisation, positioning the Company well for sustained growth and profitability.
ConsolidatedFinancialHighlights– Q3 FY26
| Particulars | Q3FY26₹ in crore | Q2FY26₹in crore | ChangeQ-o-Q% | Q3FY25₹ in crore | ChangeY-o-Y% |
| Revenue | 1210.79 | 1043.34 | 16.05% | 1011.95 | 19.65% |
| EBIDTA | 243.52 | 203.37 | 19.74% | 171.89 | 41.67% |
| EBIDTA Margin | 20.11% | 19.49% | 62 Bps | 16.99% | 312 Bps |
| PAT | 102.37 | 71.92 | 42.34% | 72.58 | 41.04% |
| PAT Margin | 8.45% | 6.89% | 156 Bps | 7.17% | 128 Bps |
On a standalone basis, the Company reported quarterly revenue of ₹1223.89 crore, EBIDTA of ₹170.61 crore, PBT of ₹78.94 crore and PAT of ₹56.19 crore.
Order Book Strength and Improving Revenue Quality
As on 31 December 2025, HFCL’s order book stood at ₹11,125 crore, up from ₹9,981 crore in Q2 FY26 and ₹10,410 crore in Q3 FY25, reflecting healthy order inflows and improved long -term revenue visibility across products, exports, EPC and defence segments.
Revenue mix continued to strengthen during the quarter:
- Product revenues increased to 60% of total revenues (vs. 51% in Q2 FY26)
- Project revenues stood at 40%
- Exports contributed 27% of revenues, up sharply from 14% in Q3 FY25, highlighting HFCL’s expanding global footprint
Exports: Strong Wins Amid Global Demand Revival
During the quarter, HFCL secured multiple export orders aggregating ~USD 192 million for Optical Fibre Cables. The global optical fibre industry has seen a revival in demand following inventory normalisation, investments by hyperscalers, telecom operators and enterprises, driven by data centres, cloud infrastructure and AI-led workloads.
Capacity Expansion and Technology Leadership
HFCL’s capacity expansion remains on track:
- Optical fibre capacity reached ~28 million fibre-kilometres from 14mn fkm (planned: 33.9 million), scheduled to be completed by December 2026
- Optical fibre cable capacity reached 30.5 million fibre-kilometres (planned: 42.3 million), scheduled to be completed by June 2026
During the quarter, HFCL developed a 3456-fibre Micro Duct IBR cable, the highest fibre-count cable developed by the Company, reinforcing its technology leadership in advanced global networks. The Company is also in the process of developing 6912-fibre Micro Duct IBR cables, very few manufacturers globally possess the technological depth and manufacturing discipline required for such products, further strengthening HFCL’s competitive positioning. The Company strongly believes that the demand for such cables will continue for the next couple of years assuring sustainable revenue growth.
Defence Business: Indigenisation Driving Future Profitability
HFCL continued to scale its defence business in line with India’s indigenisation priorities:
- Multiple defence contracts were received across radars, electronic fuzes and electro-optic systems, including thermal weapon sights
- HFCL entered the UAV night-vision camera segment with an indigenised thermal camera and secured a order from a leading Indian UAV manufacturer
- Drone detection radar systems progressed with successful static validation trials
- Electronic fuzes developed by the Company underwent firing trials in January 2026, with further tests expected in the coming months.
The defence segment is expected to meaningfully enhance operating performance as volumes scale and serial production commences.
Commenting on the quarter, Mr. Mahendra Nahata, Managing Director, HFCL, said: “Q3 FY26 was a quarter of focused execution for HFCL. We expanded our export footprint, continued capacity build-up and advanced our defence portfolio, while consciously improving the quality and sustainability of our revenue mix. With a strong order book, improving industry dynamics, defence scale-up and growing global acceptance of our products, we remain confident of delivering sustainable growth, improving profitability and long-term value creation.”
Prashant Chaudhary
An android fan and A Computer Engineer who fell in love with the world of Internet Marketing. Worked on different SEO techniques for small to large Internet properties at Initial days of my Career. I am in love with my passion for Blogging and running several blogs in variety of category.
