Optical fibre manufacturer HFCL on Wednesday reported a net profit of Rs 246 crore in the first quarter of financial year 2027, a u-turn from a net loss of Rs 29.30 crore reported in the same quarter last year.
The company’s revenue from operations came in at Rs 1,915 crore, a staggering 120% as compared with Rs 871 crore in the corresponding quarter of the previous financial year, HFCL said in a regulatory filing.
The company’s EBITDA margin for the quarter under review improved 1,832 basis points to 23.25% from 4.93% in the first quarter of the previous year. EBITDA rocketed 937% to Rs 445.27 crore from Rs 42.93 crore posted in the year-ago period.
HFCL reported its highest-ever order book of around Rs 26,665 crore, nearly five times its FY26 revenue, strengthening its long-term revenue visibility. Export revenue rose to Rs 1,063.30 crore, accounting for 55.53% of total revenue in Q1FY27, compared with Rs 209.70 crore or 24.08% of revenue in Q1FY26.
The company has revised its FY27 revenue growth estimate to 40%. Its board has also approved an investment of Rs 215 crore to build a manufacturing facility for advanced AI data centre connectivity solutions. HFCL is also expanding its optical fibre and optical fibre cable capacity and setting up additional manufacturing capacity.
The robust financials were supported by several structural growth drivers, including rising demand from hyperscale data centres, better product realisations, operating leverage from economies of scale, a diversified portfolio of high-value technology products and expanding export opportunities. Together, these factors have contributed to a significant improvement across key financial metrics, including revenue, EBITDA, PBT and PAT, with the company expecting these market trends to continue strengthening.
HFCL's capacity expansion programme is progressing as planned, with optical fibre capacity set to increase from 28 million fibre kilometres to 34 million fibre kilometres, while optical fibre cable capacity is being expanded from 34 million fibre kilometres to 43 million fibre kilometres. The expansion will enhance the company's ability to cater to rising global demand. HFCL is also progressing with its backward integration initiatives.
HFCL Managing Director Mahendra Nahata said the company's strategic initiatives are now translating into tangible outcomes, marking the beginning of a new phase of accelerated and profitable growth. Nahata added that the convergence of AI, digital infrastructure, optical connectivity and defence modernisation is creating significant long-term opportunities for the company.
At about 3 pm, HFCL shares were trading at Rs 219, higher by half a per cent. The stock price is up 218% in 2026.
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