HFCL Q1 results: Firm posts net loss of ₹32 crore, revenue falls 25%

HFCL, on Friday, July 25, reported a consolidated net loss of ₹32.24 crore in the first quarter of the 2025-26 financial year (Q1FY26), compared to a profit of ₹111.30 crore in the corresponding period a year earlier.

The fall in profit came on the back of a 25% year-on-year (YoY) decline in its revenue from operations to ₹871.02 crore during the quarter under review, as against ₹1,158.24 crore in the June quarter of FY25.

Sequentially, however, HFCL’s revenue from operations increased 8.78% quarter-on-quarter (QoQ) from ₹800.72 crore in the fourth quarter of FY25, the company said in a regulatory filing.

The tech company’s revenue from its telecom products segment fell 18.76% YoY to ₹577.91 crore in the quarter, as compared to ₹711.36 crore in the same period a year earlier. The turnkey contracts and services segment contributed ₹293.11 crore to its revenue, down 34.34% YoY from ₹446.38 crore in Q1FY25

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation) stood at ₹29 crore, falling 83% from ₹174 crore in the year-ago period. Its EBITDA margin contracted to 3.3%, as against 15% in Q1FY25.

Board approves fundraising of ₹700 crore

The company’s board of directors also approved raising funds worth ₹700 crore in tranches of one or more, subject to shareholder approval at the ensuing annual general meeting (AGM).

The capital will be raised by issuing “fully paid-up equity shares, any other equity-based instruments or securities and/or any other financial instruments/ securities convertible into and/or linked to equity shares, convertible preference shares, or fully/partly convertible debentures, through one or more permissible modes, including but not limited to public issues, right issues, preferential issues, private placements, qualified institutions placements, debt issues, and/or any combination thereof.”

The company aims to leverage emerging growth opportunities in the defence and telecommunications sectors, including strategic investments, and to further strengthen HFCL’s capital base and financial position. The proceeds from the proposed fundraising will be utilised to support various growth initiatives, including expansion through organic and inorganic means, acquisitions in related space, new business opportunities, and other strategic initiatives, repayment of debt, working capital, and general corporate purposes, the firm said.