HFCL swings to ₹245.6 Cr consolidated profit as revenue doubles YoY on data-centre exports

HFCL turned around decisively in Q1 FY27, reporting consolidated PAT of ₹245.64 Cr against a ₹29.30 Cr loss in the year-ago quarter, while revenue from operations more than doubled to ₹1,914.98 Cr (+119.9% YoY, +5.0% QoQ). Standalone told the same story — ₹179.21 Cr profit versus a ₹42.34 Cr year-ago loss on ₹1,607.80 Cr revenue — so the two bases do not diverge in direction. This is a genuine turnaround, not a low-base optical: the year-ago June 2025 quarter carried a pre-tax loss, and the swing is driven by real volume and mix, not one-offs (there are no exceptional items on either side).

The margin bridge is the story beneath the topline. Consolidated EBITDA rose to ~₹445.3 Cr from ₹42.9 Cr a year earlier (up ~937%), lifting EBITDA margin to ~23.3% from ~4.9%; net margin expanded to 12.8% from -3.3% YoY and from 9.99% sequentially. Management attributes the operating leverage to hyperscale/data-centre demand, a sharp export ramp (export revenue ₹1,063.3 Cr, ~55.5% of sales, up ~4x from ₹209.7 Cr YoY) and economies of scale as production scaled — consistent with its prior concall thesis of OFC realisation gains, favourable mix and EPC-loss resolution.

The stock went into the print at ₹196.85, down 3.9% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.

Against its own guidance the quarter is a clear beat: on the Q4 FY26 concall management guided 20-25% FY27 revenue growth and 3-4% margin expansion off a ₹21,200 Cr order book; alongside these results it disclosed a record order book of ~₹26,665 Cr (~5x FY26 revenue) and raised FY27 revenue-growth guidance to ~40% from 20%. No formal street consensus PAT print was on record for this mid-cap, so vsStreet is unknown, though coverage characterised the result as a strong beat. Concurrent with results the board approved a ₹215 Cr facility for data-centre connectivity products (MMC/SNMT assemblies, 2.70 lakh assemblies/yr, commissioning by Sept 2027), reinforcing the same AI/hyperscale demand narrative that powered the quarter. Funding stays supported by QIP balances (₹36.28 Cr unutilised) and warrant proceeds (₹138.75 Cr received, ₹90 Cr still in FDs).