HFCL clocks Rs 81.4 crore Q4 loss, revenue falls 40 pc

Mumbai, May 22 (IANS) The Mahendra Nahata-run HFCL Limited on Thursday announced that the company’s net loss for the fourth quarter (Q4 FY25) widened to Rs 81.4 crore, compared to a net profit of Rs 110 crore in the same period last fiscal (Q4 FY24).

Revenue also fell sharply by nearly 40 per cent to Rs 801 crore in Q4 FY25 from Rs 1,326 crore a year ago, according to the stock exchange filing by the Indian technology company specialised in telecom and defence equipment as well as optical fibre products.

For the full financial year, HFCL's revenue declined by approximately 9 per cent, standing at Rs 4,064.52 crore in FY25, down from Rs 4,465.05 crore in FY24.

The net profit for FY25 dropped by around 46 per cent to Rs 177.41 crore from Rs 329.81 crore in the previous financial year.

The company faced challenges such as reduced demand for optical fibre cables, margin pressures from new telecom product launches, and slower customer uptake in its EPC (engineering, procurement, and construction) business.

Despite these setbacks, HFCL remains optimistic about its future prospects, supported by a strong order book worth nearly Rs 9,967 crore as of March 31, 2025.

Managing Director Nahata highlighted that the company is focused on long-term growth, anticipating a substantial rise in revenue from the optical fibre and optical fibre cable business in FY26 due to increasing demand both domestically and internationally.

"The company’s fibre manufacturing plant and fibre optic cable plant, which operated at 45 per cent and 40 per cent capacity respectively in FY25, are expected to reach full utilisation by July 2025," Nahata mentioned.

HFCL’s telecom product lineup, including routers and 5G fixed wireless access terminals, along with upcoming products such as Wi-Fi 7 access points and high-capacity unlicensed band radios, is expected to boost revenue.

The defence segment is also set to contribute from the second quarter of the current financial year, with multiple international inquiries and domestic orders underway.

The company is developing new defence technologies, like drone detection radars, and has secured orders for tactical cables and electro-optic devices from the Indian Army.

--IANS

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