HFCL Reports Stellar Q2 FY26 Results with 5x Surge in EBITDA; Strengthens Global and Defence Business Momentum

Revenue up 19.78% QoQ to ₹1,043.34 crore; PAT turns positive at ₹71.92 crore.

HFCL Limited (HFCL), a leading technology enterprise in the telecom and defence sectors, delivered an impressive performance in Q2 FY26 with a sharp recovery in profitability, solid operational momentum, and growing international business contributions.

The Company reported revenue of ₹1,043.34 crore, marking a 19.78% quarter-on-quarter growth, with EBITDA surging nearly fivefold to ₹203.37 crore from ₹42.93 crore in Q1FY26. The EBITDA margin expanded to 19.49%, up from 4.93% in the previous quarter, while PAT turned positive at ₹71.92 crore, reflecting a significant turnaround from a ₹29.30 crore loss in Q1FY26.

Consolidated Financial Highlights – Q2 FY26

International business emerged as a strong driver of growth, contributing 28% of the total revenue in Q2FY26 compared to 24% in Q1FY26 and 10% in Q2FY25. This marks HFCL’s growing global footprint and reinforces its position as a trusted partner for telecom and technology companies across Europe, US , the Middle East, and Asia Pacific.

During the quarter, HFCL achieved major export wins and strong traction in its defence electronics portfolio, reflecting the successful execution of its diversification strategy. Key milestones included orders for Thermal Weapon Sights and participation in the upgradation tender for 811 BMP-2 Armoured Fighting Vehicles for the Indian army, highlighting the Company’s growing strength in high-technology defence solutions.

A landmark development in Q2 was the allocation of land by the Government of Andhra Pradesh for HFCL’s proposed Defence Manufacturing Facility, which will focus on Artillery Ammunition Shells and Multi-Mode Hand Grenades (MMHG). This initiative marks a critical step in expanding HFCL’s capabilities beyond telecom into the fast-growing defence manufacturing ecosystem.

Commenting on the performance, Mr. Mahendra Nahata, Managing Director, HFCL, 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.”