HFCL Ltd. has doubled its FY27 revenue growth target to at least 80% from 40% after the first quarter, as Managing Director Mahendra Nahata cited accelerating demand for AI infrastructure, hyperscale data centres and telecom networks.
The company had initially targeted revenue growth of around 20% over FY26. It raised the target to 40% after Q1 and has now increased it to at least 80%, Nahata said during the Q2 FY27 earnings call.
“20 to 40, 40 to 80,” Nahata said, adding that the company's current expectations and business visibility supported the revised target.
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The company's consolidated net profit rose to Rs 363 crore in the September quarter from Rs 68 crore a year earlier. Revenue increased to Rs 2,542 crore from Rs 1,043 crore, according to its exchange filing on Monday.
Ebitda rose to Rs 631 crore from Rs 189.8 crore, while the Ebitda margin expanded to 24.8% from 18.2%.
HFCL (Q2, Consolidated YoY)
- Net profit at Rs 363 crore versus Rs 68 crore.
- Revenue at Rs 2,542 crore versus Rs 1,043 crore.
- Ebitda at Rs 631 crore versus Rs 189.8 crore.
- Ebitda margin at 24.8% versus 18.2%.
READ | HFCL Q2 Results: Profit Jumps Over Fivefold To Rs 363 Crore
Demand Outlook
Nahata said demand continued to accelerate across AI infrastructure, hyperscale data centres and telecom networks. Opportunities with international hyperscalers and telecom operators were steadily converting into firm contracts, he said.
HFCL's order book stood at about Rs 28,900 crore, according to Nahata. The company also plans to invest around Rs 1,800 crore in optical fibre, optical fibre cable and preform manufacturing to expand capacity and deepen integration.
Nahata said HFCL had previously envisaged reaching Rs 10,000 crore in revenue by FY29. Given the current momentum, he said he would not be surprised if the company achieved that milestone much earlier.
Margin Profile
Nahata said the company's margin profile depends on its customers, products and solutions. He expects the overall margin profile to improve as HFCL secures more orders for higher-capacity fibre cables and connectivity solutions.
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