HFCL Q2FY25 results: Net profit declines 1.9% YoY to ₹71.9 crore

Shares of HFCL Ltd fell by over 1.9% after the company reported its Q2FY26 earnings. The shares traded at ₹75.8 apiece on the NSE on Friday afternoon. The company’s net profit turned positive compared to the previous quarter.

On the top-line front, the company’s total revenue jumped 19.7% QoQ and declined 4.6% YoY to ₹1,043 crore as against ₹1,093 crore. International business emerged as a strong driver of growth, contributing 28% of the total revenue in Q2FY26 compared to 24% in Q1FY26 and 10% in Q2FY25.

On the operational front, the EBITDA for the quarter jumped 18.3% YoY to ₹203 crore as against ₹171 crore in FY25. While on a sequential basis, the EBITDA jumped from ₹42.9 crore. On the other hand, the EBITDA margin stood at 19.3% for Q2FY26 as compared to 15.7% in the previous year’s same quarter.

Lastly on the bottom line front, the company's net profit declined 1.9% to ₹72 crore as against ₹73 crore in the previous year's same quarter.

During the quarter, HFCL achieved major export wins and strong traction in its defence electronics portfolio, reflecting the successful execution of its diversification strategy. Key milestones included orders for Thermal Weapon Sights and participation in the upgradation tender for 811 BMP-2 Armoured Fighting Vehicles for the Indian Army.

Commenting on the performance, Mr. Mahendra Nahata, Managing Director, HFCL, 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.”