HFCL Limited (HFCL)
Large CapTelecom stocks · Large cap · NSE
HFCL is a technology enterprise providing optical connectivity, telecom products, defence & aerospace solutions, and digital infrastructure. It focuses on R&D, advanced manufacturing, and backward integration, serving telecom and defence sectors globally with a strong product portfolio.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 45/100Rev +120% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,915 Cr | +119.9% | +5.0% |
| EBITDA | ₹414 Cr | +1378.6% | +31.8% |
| Operating margin | 22.0% | +1870 bps | +500 bps |
| PAT | ₹246 Cr | NDF | +33.7% |
| PAT margin | 12.8% | +1618 bps | +276 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
HFCL reported robust Q1FY27 results with Revenue up 119.85% YoY to INR 1,914.98 Cr, EBITDA soaring 937.20% YoY to INR 445.27 Cr (23.25% margin), and PAT at INR 245.64 Cr (12.83% margin) from a loss. Strong order inflows and strategic execution drove significant profitability improvement.
The company has demonstrated strong financial performance in Q1FY27, driven by strategic investments in technology and manufacturing. Significant YoY growth across all key metrics, coupled with a robust and diversified order book, supports the management's positive outlook and increased revenue growth aspiration for FY27.
Optical Connectivity
AI, hyperscale data centres, cloud computing, and digital infrastructure are creating unprecedented demand for advanced optical connectivity.
Defence & Aerospace
Increasing focus on national security and defence modernisation opens significant long-term opportunities for indigenous technology companies.
Product-Led Revenue Mix
Pivoting to a product-led revenue mix while deliberately shifting from low-profit turnkey work, with products now ~85% of revenues.
Global Expansion & Private Sector Focus
Expanding global reach with exports at 56% of revenues and increasing revenue from the private sector to 92% for customer diversification.
Optical Fiber Capacity
Optical Fiber capacity is expanding from 28 MN FKM/annum to 33.9 MN FKM/annum.
Optical Fiber Cable Capacity
Optical Fiber Cable capacity is expanding from 34 MN FKM/annum to 42.3 MN FKM/annum.
Optical Fibre Preform Manufacturing
Backward integration into optical fibre preforms with a project capex of INR 580 Cr for 300 MT/annum capacity by July 2029.
Ammunition Manufacturing Complex
INR 275 Cr as Phase 1 for creating a facility for Multi-Mode Hand Grenades (MMHG) in the upcoming 1000 Acre Andhra Ammunition Complex.
Global Technology Transformation
Artificial Intelligence, hyperscale data centres, cloud computing, and digital infrastructure are creating unprecedented demand for advanced optical connectivity.
National Security & Defence Modernisation
Increasing focus on national security and defence modernisation is opening significant long-term opportunities for indigenous technology companies.
Demand Upcycle for High-Fiber-Count Cables
Hyperscaler, AI, and Data Center demand are driving demand for HFCL’s high-fiber-count cables.
Rebuilding Global Defence Inventories
Defence segment is ready to serve worldwide with ongoing rebuilding of global defence inventories.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both YoY and QoQ comparisons are relevant. YoY highlights the substantial recovery and expansion from the previous year's low base, while QoQ demonstrates continued sequential momentum in revenue and profitability, indicating strong operational execution.
Revenue from Operations
Q1FY27 Revenue from Operations was INR 1,914.98 Cr, up 119.85% YoY and 4.98% QoQ.
EBITDA & EBITDA Margin
Q1FY27 EBITDA was INR 445.27 Cr, up 937.20% YoY and 32.16% QoQ. EBITDA Margin was 23.25%, up 1832 Bps YoY and 478 Bps QoQ.
PAT & PAT Margin
Q1FY27 PAT was INR 245.64 Cr, compared to a loss of INR -29.30 Cr YoY and up 33.17% QoQ. PAT Margin was 12.83%, up 1619 Bps YoY and 272 Bps QoQ.
Total Order Book
Total Order Book stood at INR 26,665 Cr in Q1FY27, up from INR 21,206 Cr in Q4FY26 and INR 11,125 Cr in Q3FY26.
FY27 Revenue Growth Aspiration
Management has increased its FY27 revenue growth aspiration to 40% based on current momentum.
FY27 EBITDA Margin Target
Management aims to achieve an EBITDA margin of over 23% in FY27, already achieved in Q1FY27.
Long-Term EBITDA Margin Expansion
EBITDA margin is targeted to expand from ~16.7% in FY26 to 22-25% by FY29.
Strategic Revenue Mix Targets
Targeting 80-85% Revenue from Product and more than 60% Revenue from Export by FY27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| FY27 Revenue Growth | Q1FY27 Revenue up 119.85% YoY | Achievement of 40% revenue growth aspiration for FY27. |
| EBITDA Margin | Q1FY27 EBITDA Margin at 23.25% | Sustenance of EBITDA margin above 23% and progress towards 22-25% by FY29. |
| Order Book Execution | Total Order Book of INR 26,665 Cr | Timely execution and conversion of the strong order book into revenue. |
| Product & Export Revenue Mix | Products ~85%, Exports ~56% | Achievement of 80-85% product revenue and >60% export revenue by FY27. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
67Bullishfull bull SMA stack · SMA20 +11.7% / mo · MACD − · near 52W high
Technical chart
HFCLdaily · 1Y · AUTO+230.3%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 54. Wait for confirmation.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~10.5% over last month) — short-term momentum positive.
- RSI(14) at 54 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 10% off 52W high · 287% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 55.1% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +17.3%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 17 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 17 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Balance sheet contributes 6/15 to the score.
- Cash flow contributes 3/10 to the score.
- Growth contributes 6/25 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -398.3%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
Telecom valuation: EV/EBITDA against ARPU, debt, and capex
Telecom needs enterprise-value and cash-flow framing because leverage is structurally important.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 23rd percentile of the scored universe and 23rd percentile within Telecom. Main check: results consistency is weak at 29/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-378 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Telecom: 23rd pctile, median 66 · Large: 13th pctile, median 73
151 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸3/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Operating cash flow is negative at ₹-378 Cr.
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸Promoter holding fell 1.7%.
- ▸ROE is low at 7%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 61.90
- P/B
- 7.22
- EV/EBITDA
- 28.11
- Market Cap
- 35424.00Cr
Profitability
- ROE
- 6.95%
- ROCE
- 10.90%
- ROA
- 6.81%
- Dividend Y
- 0.04%
Growth (CAGR)
- Revenue 5Y
- 2.00%
- EPS 5Y
- 5.00%
- Revenue 3Y
- 1.00%
- EPS 3Y
- 1.00%
Balance Sheet
- Debt/Equity
- 0.36
- Interest Coverage
- 4.60×
- Altman Z
- 7.39
- Book Value
- 32.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- -378.00 Cr
- EPS TTM
- 3.77
Shareholding
- Promoter Hold
- 28.29%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 87%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Telecom, ranked by similarity
Peers
Business-comparable peers in Telecom — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.