HFCL Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,541.79 Cr (+143.62% YoY) and PAT growth of +448.14% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 19, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 2,541.79 Cr (+143.62% YoY) |
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| PAT (Q2) | Rs. 394.22 Cr (+448.14% YoY) |
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| EBITDA margin | 25.89% (+640 bps YoY) |
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| EPS (Q2) | Rs. 2.37 (+404.26% YoY) |
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| Market cap | Rs. 40,407.93 Cr |
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| CMP | Rs. 264.00 |
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Quarter Snapshot
Q2 FY27 was a record quarter with revenue up 143.62% YoY to Rs.2,541.79 crore, EBITDA margin of 25.89% exceeding management's ~23% guidance by ~289 bps, and PAT up 448.14% YoY. The order book of Rs.28,911 crore (3.25x annual revenue) and accelerating AI/data-center-driven telecom product demand support the FY27 ≥80% revenue growth guidance, with H1 already at 90% of FY26 full-year revenue. Key offsets are the widening turnkey segment loss of Rs.(122.58) crore against management's guidance for NFS losses to cease by Q2 FY27, input cost pressure from preform inflation, and Rs.2,890 crore of receivables weighing on cash conversion.
Key Investment Insights
Key Positives
- Revenue grew 143.62% YoY to Rs.2,541.79 crore and 32.73% QoQ; H1 FY27 revenue of Rs.4,456.77 crore is already 90% of FY26 full-year revenue
- EBITDA margin of 25.89% expanded 640 bps YoY and 264 bps QoQ, exceeding management's ~23% margin guidance
- PAT grew 448.14% YoY to Rs.394.22 crore; EPS grew 404.26% YoY to Rs.2.37
- Telecom Products revenue grew 373.8% YoY to Rs.2,321.98 crore (91.3% of revenue) with segment margin of 30.84%, up 584 bps YoY
- Order book reached Rs.28,911 crore, up 160% YoY, providing 3.25x annual revenue coverage
- Defence segment turned profitable at Rs.3.45 crore from a Rs.(8.04) crore loss in Q1 FY27, with revenue up 84.8% YoY
- H1 operating cash flow of Rs.455.27 crore versus Rs.(43.60) crore in H1 FY26; free cash flow marginally positive at Rs.7.53 crore despite Rs.447.74 crore capex
- Product revenue share of 93.5% exceeded management's 80-85% target; debt-to-equity of 0.32x within ~0.3x guidance
Risk Factors
- Turnkey Contracts segment loss widened to Rs.(122.58) crore (margin −90.09%) from Rs.(87.53) crore in Q1 FY27; management's guidance for NFS turnkey losses to cease by Q2 FY27 was not met
- Cost of materials/services consumed grew 230.1% YoY, outpacing revenue growth by 86 percentage points; management flagged 20-25% preform price inflation
- Trade receivables at Rs.2,890 crore (65% of H1 revenue) with Rs.400 crore NFS/UP receivables still pending collection; CFO/PAT at 0.71x and CFO/EBITDA at 0.41x
- Defence H1 revenue of Rs.78.68 crore requires ~Rs.421 crore in H2 to reach the Rs.500 crore FY27 target
- Non-current borrowings rose Rs.261.75 crore to Rs.651.63 crore to fund capex; net borrowings increased Rs.127 crore over six months