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HFCL Q2 Profit Soars to ₹394 Crore Amid Rising AI Data Centre Demand
Sentiment: PositiveHigh Priority
What Happened?
HFCL reported a significant profit increase to ₹394.22 crore for Q2 2026, driven by demand for optical fibre cables from AI data centres. The company anticipates 80% revenue growth this fiscal year.
Key points
- HFCL's profit increased from ₹72 crore in Q2 2025 to ₹394.22 crore in Q2 2026.
- Consolidated revenue from operations more than doubled to ₹2,541.79 crore.
- The company expects to achieve ₹10,000 crore in revenue before FY29.
- HFCL's profit margin rose to 14.36% from 2.23% year-on-year.
- The order book exceeds ₹28,900 crore, providing multi-year revenue visibility.
- Investment of approximately ₹1,800 crore planned to expand manufacturing capacities.
Key insights
- The surge in demand for optical fibre cables may lead to increased investments in telecom infrastructure.
- HFCL's growth could attract more partnerships with international telecom operators.
- The company's expansion in Defence and Aerospace may diversify its revenue streams.
Why it matters
HFCL's strong performance reflects growing demand in the telecom sector, particularly from AI data centres.
Tags
Entities
HFCL· CompanyAI Data Centres· Technology
Source
Business Standard
