HFCL’s revenue from its business dropped by 39.61% compared to last year, falling to Rs 800.72 crore in the last quarter of FY25. The company reported a loss before tax of Rs 104.93 crore in Q4 FY25, whereas it had made a profit of Rs 149.45 crore in the same quarter last year.
Total expenses also went down by 22.85% to Rs 918.19 crore during the quarter. However, the cost of materials and services went up by 70.50% to Rs 785.63 crore, and finance costs increased by 74.72% to Rs 46.76 crore.
HFCL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) were negative Rs 22.23 crore in Q4 FY25, compared to a positive Rs 209.29 crore in Q4 FY24. The EBITDA margin dropped from 15.78% to just 2.79%.
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Mahendra Nahata, Managing Director of HFCL, said FY25 was a challenging year because of weaker demand for optical fiber cables, pressure on profits from new telecom products, and slower orders in the EPC (engineering, procurement, and construction) business. Despite these issues, the company worked on building a strong base for future growth.
He added that HFCL has a strong order book worth Rs 9,967 crore and expects better performance in FY26. The optical fiber and cable business is expected to grow a lot due to increasing demand in India and globally. The company is increasing production capacity, with fiber manufacturing and cable plants currently running at 45% and 40% capacity, and aiming for full capacity by July 2025.
HFCL’s telecom products, like routers, 5G terminals, Wi-Fi 7 access points, and high-capacity radios, will help increase sales. In defence, the company expects orders from Q2 FY26 for products like ground surveillance radars, electronic fuses, and drone detection radars.
The company has won a Rs 44.36 crore order for tactical cables from the Indian Army and is the lowest bidder for a Rs 55 crore contract for electro-optic devices. Its wire harness business is helping upgrade fighter aircraft and tanks. DRDO has also approved technology transfer for two defence products. A new defence equipment factory has been set up in Hosur, Tamil Nadu.
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To meet the growing global demand for data centers, HFCL has improved its manufacturing for data center connectivity products, opening a new source of revenue. Exports are a key part of their plan, with good sales in fiber optic cables, 5G customer equipment, routers, Wi-Fi products, and FRP rods. Defence product enquiries are also coming from international markets.
With a strong order pipeline and production capacity reaching full scale, HFCL expects its revenue to grow by 25-30% in FY26.
Looking forward, the company is confident about a strong comeback in FY26 thanks to more orders, investments paying off, and growth in telecom, defence, and data networking businesses. Their focus remains on innovation, expanding globally, and creating long-term value.
The board has approved a 10% dividend for FY25 (Rs 0.10 per share), which will be finalized at the upcoming annual general meeting.
HFCL manufactures optical fiber cables, optical fibers, telecom, and networking equipment. They provide end-to-end solutions for telecom, defence, and railway communications.
HFCL’s shares rose slightly by 0.28% to Rs 84.74 on the BSE.
