HFCL Limited (Himachal Futuristic Communications Limited) is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment, Optical Fiber and Optic Fiber Cable (OFC). The company was co-founded by Mahendra Nahata, Deepak Malhotra, and Vinay Maloo in 1987, and incorporated as a public limited company in the state of Himachal Pradesh in May 1987. The company is based in Gurugram and listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
HFCL is a leading global technology company connecting billions of people, devices, and systems. For over 30 years, we have driven business transformations by harnessing the power of connectivity. The company has established itself as a technology-driven organization that designs, integrates, and delivers next-generation technology products and solutions across multiple sectors including telecommunications, defense, railways, and smart city projects.
HFCL operates through well-defined business segments that cater to the growing demands of digital infrastructure. The Telecom Products segment contributed 57% in 9M FY25 vs 43% in FY22, indicating a strategic shift towards higher-margin product business.
The company's telecom and networking products division offers comprehensive solutions including UBR radios, Wi-Fi 5/6 access points, AI-driven network management, home mesh routers. It is a top manufacturer of Wi-Fi access points and UBR radios in India, demonstrating its market leadership in crucial connectivity solutions.
In the optical fiber segment, HFCL manufactures optical fibers, micro cables, ribbon cables, and IBR cables, holding the largest market share in OFC supplies. The company has manufacturing facilities spread across strategic locations, with state-of-the-art Optical Fiber and Optical Fiber Cable manufacturing plants at Hyderabad, Optical Fiber Cable manufacturing plant in Goa, and in its subsidiary HTL Limited at Chennai.
The defense vertical represents another significant growth avenue, where HFCL is a prominent player in India's defence sector, offering products like electronic fuzes, thermal weapon sights, and surveillance radars. This diversification into defense technology aligns with the government's focus on indigenous defense manufacturing.
HFCL has established a strong international presence, serving customers across multiple continents. The company is a partner of choice for customers across India, Europe, Asia Pacific, the Middle East, Africa, and the USA. The company's export capabilities have been strengthening, with exports to over 25 countries in FY 2016 and achieving highest ever export revenue of ₹75.27 Crore in FY 2016.
The company's turnkey solutions business provides comprehensive infrastructure deployment services. The turnkey Contracts and services segment is engaged in delivering telecom infrastructure and communication network systems for Telecom Operators, Defence Services, Railways, Safe and Smart Cities, making it a comprehensive solutions provider for critical infrastructure projects.
HFCL's financial performance has faced challenges in recent quarters. The company has a market capitalization of ₹12,140 Crore as of recent data, reflecting its significant presence in the Indian capital markets. For the full year FY25, HFCL reported revenue of ₹4,064.52 Crore, down 8.97% from ₹4,465.05 Crore in FY24. Profit after tax (PAT) declined sharply to ₹173.26 Crore in FY25, down 48.67% from ₹337.52 Crore in FY24.
The Q4 FY25 results showed particular challenges, with the company reporting a net loss of ₹83 Crore in the fourth quarter of financial year 2024–25, compared to a net profit of ₹109 Crore in the corresponding quarter of the previous year. Revenue from operations fell 39% year-on-year (YoY) to ₹800 Crore in Q4 FY25, down from ₹1,326 Crore in Q4 FY24.
Key financial metrics for FY25 include:
- Revenue: ₹4,064.52 Crore (down 8.97% YoY)
- EBITDA: ₹506.75 Crore (down 25.71% YoY)
- PAT: ₹173.26 Crore (down 48.67% YoY)
- EBITDA Margin: 12.47% (vs 15.28% in FY24)
Despite the challenging FY25 performance, HFCL is positioning itself for recovery through strategic initiatives. HFCL reported a 30% increase in order bookings to ₹9,967 Crore for FY25, driven by government contracts. The company anticipates a 100% revenue growth from fiber optic cable and has secured contracts worth ₹157 Crore for the BharatNet project and ₹173.72 Crore for 5G CPE.
The company's management remains optimistic about the future, with expectations of a robust recovery driven by a strong order book, particularly from the rollout of 5G technology and government initiatives like BharatNet, which are expected to boost revenue by 25-30% in the current fiscal year.
Research and development remains a key focus area, with the company substantially increasing its R&D focus over the years to position itself as a technology-driven company, including opening a new R&D Centre at Bengaluru. The company has also participated in the government's PLI (Production Linked Incentive) scheme through its subsidiary HFCL Technologies Private Limited, which should enhance competitiveness in both domestic and international markets.
Promoter holding in HFCL Ltd has gone down to 34.37% as of March 2025 from 37.63% as of June 2024, indicating some reduction in promoter stake. The company maintains transparency in its operations and regularly updates stakeholders through various disclosure mechanisms as per regulatory requirements.
The board of directors has approved a dividend of 10% for FY25, i.e., ₹0.10 per equity share of face value Re 1 each, subject to shareholder approval at the upcoming annual general meeting (AGM), demonstrating the company's commitment to returning value to shareholders despite challenging financial performance.
HFCL continues to navigate through a transformative period in the telecommunications industry, positioning itself to capitalize on the growing demand for digital infrastructure, 5G rollout, and defense modernization initiatives while addressing operational challenges and working towards sustainable growth.
