HFCL Ltd Share Update: Losses, Big Order Wins & 5G Growth Outlook
HFCL Ltd, a leading Indian telecom‑infrastructure and defence‑technology company, has been in focus recently due to its mixed Q4 FY25 financial performance, strong order inflows, and optimistic FY26 growth outlook.
🔻 Q4 FY25 Results: Revenue Decline & Loss
- Consolidated revenue of ₹800 cr, down ~40% YoY (from ~₹1,326 cr).
- Swung to a net loss of ~₹83 cr in Q4 FY25, reversing a ₹109 cr profit a year ago; EBITDA was negative at ₹‑22 cr.
- Declared a final dividend of ₹0.10/share (10%) for FY25.
📈 Market Reaction & Order Wins
- Shares jumped ~5% intraday after securing purchase orders worth ₹76 cr—₹59 cr from overseas and ₹17 cr from ITI Limited.
- Won a major ₹174 cr order for 5G telecom‑networking equipment, boosting its order pipeline.
- As of March 31, 2025, HFCL’s order book stood at ~₹10,000 cr.
🚀 Outlook for FY26: 5G Tailwind & Revenue Targets
- Expecting 25–30% revenue growth in FY26, driven by 5G equipment demand, optical‑fibre cable recovery, and full capacity utilization by July 2025.
- Launched India’s first 5G Fixed Wireless Access (FWA) CPE, with over 400,000 units dispatched in year one.
📊 Valuation & Key Metrics
- Trades at ~2.9× book value (~₹82/share) and ~68× forward P/E, above the sector average (~16×).
- 52‑week price range: ₹71.5–171; YTD level around ₹82, down ~27%.
- ROCE ~7.7%, ROE ~4.3%, reflecting capital intensity and margin pressure.
🔍 What Should Investors Watch?
- Order Execution: Timely delivery and revenue recognition from large orders (₹250 cr+).
- Margin Recovery: Whether 5G and optical‑fibre growth restores positive EBITDA.
- Valuation Justification: Earnings turnaround needed to support current premium multiples.
- Cash Flow Health: Monitor working‑capital cycle, given long receivable days (~170 days).
Bottom Line: HFCL is at an inflection point—while Q4 showed revenue decline and losses, strong 5G and optical‑fibre orders and a robust order book support its FY26 growth ambitions. Execution and margin recovery will be key to sustaining its premium valuation.
📚 Sources
- LiveMint – “HFCL Q4 Losses, Revenue Decline & Dividend”
- Economic Times – “HFCL Secures ₹76 cr Order, Shares Jump 5%”
- Business Standard – “HFCL Wins ₹174 cr 5G Equipment Order”
- Company Presentation – HFCL Ltd Q4 FY25 Investor Deck