Shares in focus: HFCL shares rise 2.5% after reporting 49% drop in annual profit despite strong order book

The shares of HFCL Limited were trading at ₹86.60, up by ₹2.10 or 2.49 per cent on the NSE today at 1.10 pm.

HFCL Limited reported a consolidated net profit of ₹173.26 crore for fiscal 2024-25, down 48.67 per cent from ₹337.52 crore in the previous year. The telecom and defence equipment manufacturer announced these results on May 22, 2025.

Annual revenue declined 8.97 per cent to ₹4,064.52 crore from ₹4,465.05 crore, while EBITDA fell 25.71 per cent to ₹506.75 crore. The company’s EBITDA margin compressed to 12.47 per cent from 15.28 per cent in FY24.

The fourth quarter performance was particularly challenging, with the company posting a consolidated loss of ₹83.30 crore, compared to a profit of ₹109.36 crore in Q4FY24. Quarterly revenue dropped 39.62 per cent to ₹800.72 crore.

Managing Director Mahendra Nahata attributed the decline to reduced optical fibre cable demand, margin pressure from new telecom products, and slower customer uptake in the EPC business.

Despite the financial setback, HFCL maintains a robust order book of ₹9,967 crore. The company expects 25-30 per cent revenue growth in FY26, driven by full capacity utilisation in fibre manufacturing and increased defence sector contributions.

The board approved a 10 per cent dividend of ₹0.1 per share, subject to shareholder approval. HFCL recently secured defence contracts worth ₹44.36 crore, and emerged as the lowest bidder for a ₹55-crore army contract.

Published on May 23, 2025