HFCL has reported a sharp rise in consolidated profit for the quarter ended September 30, 2026, as demand for optical fibre cables from AI data centres, hyperscale facilities and telecom networks lifted the domestic telecom gear maker’s performance.
The company’s profit after tax rose to ₹394.22 crore in the second quarter, compared with around ₹72 crore in the same period a year ago. Consolidated revenue from operations more than doubled to ₹2,541.79 crore from ₹1,043.34 crore during the corresponding quarter.
HFCL managing director Mahendra Nahata described the results as the best-ever quarterly performance in the company’s history. In a statement, he said the figures reflected the increasing scale and momentum of the business and strengthened the company’s confidence in delivering sustained growth.
The results point to the expanding infrastructure requirements of AI and data-centre operations. Optical fibre cables form the high-capacity connectivity layer linking data centres, telecom networks and other digital infrastructure. HFCL said demand was accelerating across AI infrastructure, hyperscale data centres and telecom networks, with opportunities involving international hyperscalers and telecom operators moving towards firm contracts.
The company said its order book exceeded ₹28,900 crore, providing multi-year revenue visibility. It also reported that its profit after tax margin had increased to 14.36 per cent from 2.23 per cent a year earlier.
HFCL has forecast revenue growth of at least 80 per cent in the current financial year over financial year 2026 and expects to reach the ₹10,000 crore revenue mark earlier than its previous target of FY29. The company said the revised expectation was based on current business visibility and the conversion of its order pipeline into contracts.
To support this expansion, HFCL plans to invest approximately ₹1,800 crore across optical fibre, cable and preform manufacturing. The company said the investment would expand capacity and deepen integration across its production operations, while strengthening its optical fibre cable portfolio and data-centre connectivity solutions.
The proposed capacity expansion comes as data-centre development increases the need for reliable, high-bandwidth connections. For cities, this demand is linked not only to data-centre buildings but also to the fibre networks, power systems and telecom infrastructure required to connect them. HFCL’s results therefore provide a corporate indicator of the investment gathering pace around India’s digital infrastructure supply chain.
HFCL also identified its Defence and Aerospace business as a future growth engine. Its portfolio includes thermal weapon sights, electronic fuzes, surveillance radars, Multi-Mode Hand Grenades and aerostructures. The company said the ongoing acquisition of its aerospace business was expected to be completed during the current quarter and that it remained on track for approximately ₹500 crore in Defence revenue in FY27.
The company’s next steps include completing the aerospace acquisition during the current quarter and expanding optical fibre, cable and preform manufacturing capacity through the planned investment. HFCL said it expected the growth momentum and order pipeline to support its updated revenue targets.
