HFCL's telecom products earn more than the whole company

Companies No. 83 20 October 2026 · 2 min read

HFCL's results for July to September 2026 show profit after tax up 5.5x to ₹394 crore, on revenue up 2.4x to ₹2,542 crore. HFCL credits momentum across its businesses and a ₹28,911 crore order book.

The segment table says 1 business did it. Telecom products, 91% of revenue, made ₹716 crore before interest and tax, 5.8x what it made a year earlier. All 4 segments made ₹600 crore, so the other 3 lost ₹116 crore together.

The loss is turnkey contracts, where HFCL builds networks for others. Revenue fell 73% to ₹136 crore, and a ₹36 crore profit became a ₹123 crore loss, 90% of sales. Its half-year loss of ₹210 crore is 1.9x all of FY26's, yet it holds 34% of the group's assets. The filing gives no reason.

Defence, which HFCL calls its next major engine of growth, earned ₹3 crore, and its first-half sales of ₹79 crore are 16% of the roughly ₹500 crore it aims for in FY27.

So the 5.5x is a telecom products story. The rest of HFCL lost money before interest, and the filing does not split the order book by segment, so it cannot show how much of that work is the profitable kind.

A waterfall that starts at ₹716 crore of profit from telecom products, adds ₹3 crore from defence and ₹3 crore from others, loses ₹123 crore on turnkey contracts and ends at ₹600 crore for all 4 segments.

A stream across 3 quarters: telecom products grow from ₹490 crore to ₹1,590 crore to ₹2,322 crore, turnkey contracts shrink from ₹507 crore to ₹280 crore to ₹136 crore, and defence and others together stay under ₹84 crore.

Bars for 3 quarters: turnkey revenue falls from ₹507 crore to ₹280 crore to ₹136 crore, while its result goes from a ₹36 crore profit to losses of ₹88 crore and ₹123 crore.

A bar for HFCL's ₹500 crore defence revenue aim, with the ₹79 crore made from April to September 2026 as a short slice at the left and ₹421 crore still to come.

Sources

HFCL Limited, NSE filing of 19 October 2026: outcome of the board meeting, with the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026, the segment table and the press release (PDF, results pages scanned)