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HFCL's Stunning Turnaround: 5X EBITDA Jump as Defence and Global Biz Soar

HFCL has delivered an impressive financial turnaround with a massive fivefold increase in EBITDA. The company's international business is booming, now contributing 28% of total revenue. Defence electronics orders are accelerating, including contracts for Thermal Weapon Sights and BMP-2 upgrades. The upcoming Defence Manufacturing Facility in Andhra Pradesh will further strengthen HFCL's position in India's defence ecosystem.

Key Points: HFCL Q2 Results Show 5X EBITDA Growth on Defence Orders

  • EBITDA surged nearly fivefold to ₹203 crore from previous quarter
  • International business contributed 28% of revenue, up from 10% last year
  • Defence orders include Thermal Weapon Sights and BMP-2 upgrade contracts
  • Company secured land for new Defence Manufacturing Facility in Andhra Pradesh
2 min read

HFCL posts strong Q2 results with 5X jump in EBITDA; international and defence businesses drive growth

HFCL reports 5X EBITDA surge to ₹203 crore in Q2, driven by strong international business growth and major defence electronics orders including Thermal Weapon Sights.

"Our Q2 results reflect the power of strategic execution and our innovation-driven transformation. - Mahendra Nahata, HFCL Managing Director"

New Delhi, October 17

HFCL Limited (HFCL) has reported a robust quarter, marked by a sharp turnaround in profitability and operational performance, driven by strong momentum in its international and defence businesses. The company's EBITDA surged nearly fivefold in the second quarter of FY26 compared to the previous quarter.

According to the company's press release, HFCL's revenue grew 19.78 per cent quarter-on-quarter to Rs 1,043.34 crore in Q2FY26 from Rs 871.02 crore in Q1FY26. The company's EBITDA rose to Rs 203.37 crore from Rs 42.93 crore, while the EBITDA margin expanded significantly to 19.49 per cent from 4.93 per cent in the preceding quarter. Profit after tax (PAT) turned positive at Rs 71.92 crore, marking a strong recovery from a loss of Rs 29.30 crore in Q1FY26.

International business remained the key growth driver, contributing 28 per cent of total revenue during the quarter, up from 24 per cent in Q1FY26 and 10 per cent a year ago. The increase highlights HFCL's growing presence across Europe, the US, the Middle East, and the Asia Pacific.

The company also reported a surge in defence electronics orders, including contracts for Thermal Weapon Sights and participation in the upgradation tender for 811 BMP-2 Armoured Fighting Vehicles for the Indian Army. These developments underscore the company's progress in diversifying beyond telecom into defence manufacturing.

A major highlight of the quarter was the allocation of land by the Government of Andhra Pradesh for HFCL's proposed Defence Manufacturing Facility. The facility will produce Artillery Ammunition Shells and Multi-Mode Hand Grenades (MMHG), strengthening the company's role in India's defence ecosystem.

Commenting on the performance, HFCL Managing Director Mahendra Nahata 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."

However, year-on-year, the company reported a 4.6 per cent dip in revenue compared to Rs 1,093.61 crore in Q2FY25, while EBITDA grew 18.36 per cent. PAT stood at Rs 71.92 crore against Rs 73.33 crore in the same period last year.

- ANI

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Reader Comments

R
Rohit P
The international business growth from 10% to 28% in just one year is impressive. Shows how Indian companies are becoming global players. Defence diversification is a smart move given the current geopolitical situation.
A
Arjun K
While the quarter-on-quarter growth looks great, I'm concerned about the slight YoY revenue dip. Hope this isn't a one-time spike and the company can sustain this momentum. The defence orders are promising though.
S
Sarah B
The Andhra Pradesh defence facility is a game-changer! Manufacturing artillery shells and grenades will significantly boost India's defence capabilities. More Indian companies should follow this path of strategic diversification.
V
Vikram M
From loss to profit in one quarter - that's some turnaround! The defence electronics orders for Indian Army modernization shows HFCL is aligning perfectly with national priorities. Jai Hind! 🙏
M
Michael C
The EBITDA margin expansion from 4.93% to 19.49% is remarkable operational improvement. This level of efficiency in Indian manufacturing is exactly what investors want to see. Bullish on HFCL's future prospects.

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