New Delhi [India], October 17 : HFCL Limited (HFCL) has reported a robust quarter, marked by a sharp turnaround in profitability and operational performance, driven by strong momentum in its international and defence businesses. The company's EBITDA surged nearly fivefold in the second quarter of FY26 compared to the previous quarter.
According to the company's press release, HFCL's revenue grew 19.78 per cent quarter-on-quarter to Rs 1,043.34 crore in Q2FY26 from Rs 871.02 crore in Q1FY26. The company's EBITDA rose to Rs 203.37 crore from Rs 42.93 crore, while the EBITDA margin expanded significantly to 19.49 per cent from 4.93 per cent in the preceding quarter. Profit after tax (PAT) turned positive at Rs 71.92 crore, marking a strong recovery from a loss of Rs 29.30 crore in Q1FY26.
International business remained the key growth driver, contributing 28 per cent of total revenue during the quarter, up from 24 per cent in Q1FY26 and 10 per cent a year ago. The increase highlights HFCL's growing presence across Europe, the US, the Middle East, and the Asia Pacific.
The company also reported a surge in defence electronics orders, including contracts for Thermal Weapon Sights and participation in the upgradation tender for 811 BMP-2 Armoured Fighting Vehicles for the Indian Army. These developments underscore the company's progress in diversifying beyond telecom into defence manufacturing.
A major highlight of the quarter was the allocation of land by the Government of Andhra Pradesh for HFCL's proposed Defence Manufacturing Facility. The facility will produce Artillery Ammunition Shells and Multi-Mode Hand Grenades (MMHG), strengthening the company's role in India's defence ecosystem.
Commenting on the performance, HFCL Managing Director Mahendra Nahata said, "Our Q2 results reflect the power of strategic execution and our innovation-driven transformation. The strong recovery in margins and profitability, combined with growing international demand and breakthrough achievements in defence, affirm our evolution into a global technology enterprise. The proposed Defence Manufacturing Facility is a testament to our commitment to India's self-reliance and global leadership in advanced technologies."
However, year-on-year, the company reported a 4.6 per cent dip in revenue compared to Rs 1,093.61 crore in Q2FY25, while EBITDA grew 18.36 per cent. PAT stood at Rs 71.92 crore against Rs 73.33 crore in the same period last year.
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