HFCL: Record Quarter, AI Future
HFCL Achieves Record Profit and Revenue Surge in Q1 FY27, Expands for AI Data Centers
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Key Points
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Standalone revenue for Q1 FY27 was ₹1,607.80 crore, up 103.70% YoY and 6.39% QoQ to ₹1,511.24 crore in Q4 FY26.
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Q1 FY27 earnings per share stood at ₹1.49 (basic and diluted), turning from a negative ₹0.22 in Q1 FY26 and ₹1.21 in Q4 FY26.
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Total income rose 119.76% YoY to ₹1,946.13 crore in Q1 FY27, with other income of ₹31.15 crore (up from ₹14.53 crore a year earlier).
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HFCL approved a data-centre connectivity manufacturing facility with a capacity of 270,000 assemblies per year, at an estimated capex of ₹215 crore, to be commissioned by September 2027, located with HTL (a subsidiary) to consolidate capacity.
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Optical fibre capacity is planned to increase from 28 million fibre kilometres to 34 million fibre kilometres to meet rising AI and hyperscale data-centre demand.
HFCL posted its highest-ever quarterly profit in Q1 FY27, recording a net profit of ₹245.6 crore — a sharp reversal from a ₹32.2 crore loss in the same quarter last year, according to NDTV Profit. Revenue surged 119.9% year-on-year to ₹1,914.98 crore, driven by an explosion in data-centre demand and a record export haul.
The company also doubled its revenue growth target for FY27 — from 20% to 40% — and approved a ₹215 crore factory to build data-centre connectivity products, HDFCSky reported. HFCL shares jumped 5% on the news, per Upstox.
Record Profit Driven by Exports and Data-Centre Orders
HFCL's standalone revenue for Q1 FY27 hit ₹1,607.80 crore, up 103.7% year-on-year. Total income, including other income of ₹31.15 crore, reached ₹1,946.13 crore, per Market Screener. EBITDA climbed to ₹445.27 crore, with a healthy margin of 23.25%. Pre-tax profit stood at ₹331.52 crore.
Exports were the star of the quarter. They surged to ₹1,063.30 crore, making up 55.5% of total revenue. Earnings per share flipped from a negative ₹0.22 a year ago to a positive ₹1.49, according to NDTV Profit. That marks a full turnaround in just twelve months.
Order Book Near ₹27,000 Crore Signals Long-Term Momentum
HFCL's total order book stands at approximately ₹26,665 crore. CXOToday noted that this is nearly five times HFCL's entire FY26 revenue. That gives the company strong visibility on future earnings for several years ahead.
The company raised its FY27 revenue growth guidance from 20% to 40%, a bold move backed by that pipeline. Management is betting that demand from telecom rollouts and AI-linked data centres will stay strong throughout the year.
₹215 Crore Factory to Tap AI and Data-Centre Boom
HFCL approved a new manufacturing facility costing ₹215 crore. The plant will produce 270,000 data-centre connectivity assemblies per year. It will be built at HTL, an HFCL subsidiary, to consolidate capacity under one roof. The facility is set to be ready by September 2027, per Upstox.
HFCL is also expanding its optical fibre capacity — from 28 million fibre kilometres to 34 million fibre kilometres. The push is aimed at meeting rising demand from AI workloads and hyperscale data centres, which need massive amounts of fibre to connect servers, according to CXOToday.
What This Means Compared to Last Year and Last Quarter
A year ago, HFCL was losing money. In Q1 FY26, the company reported a net loss of ₹32.2 crore and a negative EPS of ₹0.22. Now it is posting a ₹245.6 crore profit and an EPS of ₹1.49. That is a massive swing in just four quarters, per NDTV Profit.
Even compared to last quarter, growth continued. Standalone revenue rose 6.39% from ₹1,511.24 crore in Q4 FY26 to ₹1,607.80 crore in Q1 FY27. EPS also grew from ₹1.21 to ₹1.49 quarter-on-quarter, showing the momentum is not slowing down, according to HDFCSky.
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