- Home
- Defence News
- Defence Appointments
- Defence Manufacturing
- Ministry of Defence
- CAPFsCAPFs
New Delhi: HFCL reported its strongest-ever quarterly performance for Q2 FY27, with consolidated net profit rising 448% year-on-year to ₹394.22 crore and revenue surged 143.6% to ₹2,541.79 crore. The October 19 results highlighted growing demand for optical-fibre cables and connectivity solutions from AI infrastructure, hyperscale data centres and telecom networks.
Follow Defence Watch on LinkedIN
Operating performance strengthened alongside revenue growth. EBITDA has risen approximately 224% to ₹658 crore, while the EBITDA margin expanded by 640 basis points to 25.89%, indicating improved profitability. HFCL’s order book exceeds ₹28,900 crore, providing multi-year business visibility.
For the current financial year, HFCL expects revenue to grow by at least 80% over FY26 and plans to invest around ₹1,800 crore in optical-fibre, cable and preform manufacturing capacity. The company also expects to cross the ₹10,000-crore revenue mark ahead of its earlier FY29 target.
The defence angle remained promising but comparatively small. HFCL targeted approximately ₹500 crore in defence revenue in FY27, with a portfolio spanning thermal weapon sights, electronic fuzes, surveillance radars, multi-mode hand grenades and aerostructures. The company also expects its aerospace-business acquisition to strengthen its capabilities, although defence and aerospace are not the primary drivers of the reported quarterly surge.
The critical takeaway is that HFCL’s immediate growth story rests on telecom connectivity and AI-related infrastructure demand, while defence and aerospace offer a potential additional growth engine. Delivering on its ambitious revenue guidance and converting its order book into profitable execution will be the next test.
(Defence Watch– India’s Defence News centre that places the spotlight on Defence Manufacturing, Defence Technology, Strategy and Military affairs is on Twitter. Follow us here and stay updated.)
