Tata Consultancy Services Ltd.
NSE: TCS
Technology · Information Technology Services
₹2,530.00 last close on 23 Oct 2026 +0.92%
Research updated
HFCL Ltd.
NSE: HFCLTechnologyCommunication Equipment
- Last close
- ₹240.07
- Day change
- −₹11.48 (−4.56%)vs
- Market cap
- ₹39,176 crIndian rupees
- Research updated
- 4 reports
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About HFCL
HFCL Ltd. is a prominent entity in the telecommunications infrastructure and manufacturing realm. Functioning primarily as a technology and communication solutions provider, the company focuses on delivering comprehensive telecom gear and infrastructure services. HFCL Ltd. plays a pivotal role in sculpting the communications landscape by offering fiber optic cables, broadband equipment, and telecom towers, thereby catering to the ever-growing connectivity needs across regions. It extends its services to both domestic and international markets, impacting sectors such as telecommunications operators, internet service providers, and government projects, particularly in the area of broadband connectivity. Notably active in initiatives like smart cities and mobile backhaul networks, HFCL Ltd. is integral to projects driving digital transformation and infrastructure development. Its influence is significant in promoting high-speed internet accessibility and fostering innovative developments in communication technologies. With an eye on technological advancements and sustainable practices, HFCL Ltd. continues to support infrastructure evolution in the dynamic digital and telecommunication landscape.
- Sector
- Technology
- Industry
- Communication Equipment
- Listing
- NSE: HFCL
- Employees
- 1,820
- Headquarters
- New Delhi, India
- ISIN
- INE548A01028
- Website
- hfcl.com
Public research · Report of
Business model & financial foundation
HFCL (NSE: HFCL), Optical fibre and cable, telecom equipment, EPC and defence: revenue of ₹4,949 crore in FY26 (+21.8% on FY25), an EBITDA margin of 15.4%, net profit of ₹311.7 crore and net debt of ₹1,858 crore.
- Revenue, FY26 (₹ crore)
- 4,949
- consolidated
- Revenue growth, FY26
- +21.8%
- on FY25
- EBITDA margin, FY26
- 15.4%
- EBITDA (Operating EBITDA excluding other income) / revenue
- Net profit, FY26 (₹ crore)
- 311.7
- to owners
- Return on equity, FY26
- 6.9%
- on average equity
- Net debt, FY26 (₹ crore)
- 1,858
- Analytical all-in net debt
- Market capitalisation (₹ crore)
- 39,176
- at the close of 19 Oct 2026
Company profile
| Item | Value |
|---|---|
| Legal name | HFCL Limited |
| Exchange and ticker | NSE: HFCL; BSE: 500183 |
| ISIN | INE548A01028 |
| CIN | L64200HR1987PLC148689 |
| Sector | Telecommunications |
| Industry | Optical fibre and cable, telecom equipment, EPC and defence |
| Headquarters | New Delhi, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | S. Bhandari & Co. LLP and Oswal Sunil & Company (since FY23) |
| Market capitalisation | ₹39,176 crore (19 Oct 2026) |
| Shares outstanding | 153.06 crore shares (FY26) |
| Price | ₹256.0 (close, 19 Oct 2026) |
| 52-week range | ₹59.82 - ₹275.9 (to 19 Oct 2026) |
| Website | https://www.hfcl.com |
Corporate structure and shareholding
| Entity | Holding | Business |
|---|---|---|
| HTL Limited | 74% | OFC and defence manufacturing |
| HFCL Inc. | 100% | US optical connectivity sales |
| Nimpaa Telecommunications | 50% | FRP and ARP joint venture |
| BigCat Wireless | 47.67% | Wireless software and hardware JV, 50% voting rights |
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 28.29% | 28.29% | 28.29% | 28.29% |
| Promoter holding pledged | 1.15% | 1.15% | 2.08% | |
| Foreign institutions | 7.48% | 7.08% | 15.74% | 17.24% |
| Domestic institutions | 9.07% | 8.58% | 10.92% | 10.38% |
| of which mutual funds | 6.68% | 6.92% | 8.42% | |
| Retail | 55.13% | 56.03% | 45.03% | 44.09% |
| Other | 0.03% | 0.02% | 0.02% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
| Segment | revenue, FY26 (₹ crore) | Share | result, FY26 (₹ crore) | Share | expense, FY26 (₹ crore) | Share |
|---|---|---|---|---|---|---|
| Telecom Products | 3,233 | 65.3% | 763.9 | 118.7% | ||
| Turnkey Contracts and Services | 1,573 | 31.8% | -113.0 | -17.6% | ||
| Defence Product & Services | 76.7 | 1.5% | -5.05 | -0.8% | ||
| Others | 66.6 | 1.3% | -2.04 | -0.3% | ||
| Unallocated reconciliation (not an operating segment) | 7.30 | 100.0% |
Segments as the company reports them (consolidated); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| Sterlite Technologies (STLTECH) | Closest optical fibre/cable and global connectivity peer |
| Tejas Networks (TEJASNET) | Telecom equipment and government execution exposure |
| ITI (ITI) | Telecom manufacturing and BharatNet exposure; not a direct margin benchmark |
| Aksh Optifibre (AKSHOPTFBR) | Optical fibre and cable; distressed comparator |
| Vindhya Telelinks (VINDHYATEL) | Cable manufacturing and EPC |
| Paras Defence (PARAS) | Defence optionality comparison, not core optical peer |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 4,718 | 4,735 | 4,465 | 4,065 | 4,949 |
| Cost of revenue (vendor classification) * | 3,499 | 3,479 | 3,220 | 2,944 | 3,202 |
| Other operating costs (vendor classification) * | 259.6 | 292.0 | 295.6 | 450.5 | 485.6 |
| EBITDA (vendor classification) * | 601.8 | 596.6 | 603.2 | 507.1 | 780.7 |
| EBIT * | 516.6 | 513.3 | 531.2 | 401.6 | 592.1 |
| Finance costs | 74.5 | 82.7 | 147.3 | 185.0 | 242.1 |
| Profit before tax including equity-accounted JVs | 442.1 | 430.6 | 454.0 | 216.6 | 427.7 |
| Total tax expense/(benefit) | 116.3 | 112.9 | 116.5 | 43.3 | 98.2 |
| Profit after tax before non-controlling interests | 325.9 | 317.7 | 337.5 | 173.3 | 329.4 |
| Diluted EPS (₹) | 2.38 | 2.18 | 2.33 | 1.23 | 2.13 |
| Materials/services, traded purchases and inventory movement | 3,220 | 2,944 | 3,202 | ||
| Employee benefits expense | 350.5 | 363.6 | 445.3 | ||
| Other expenses | 312.5 | 308.1 | 540.6 | ||
| Operating EBITDA excluding other income | 581.5 | 449.0 | 761.5 | ||
| Other income | 100.6 | 57.8 | 65.3 | ||
| Depreciation, impairment and amortisation | 81.8 | 105.5 | 157.4 | ||
| Exceptional items (expense positive) | 0.00 | 0.00 | 0.00 | ||
| Profit attributable to non-controlling interests | 7.72 | -4.14 | 17.7 | ||
| Share of JV profit/(loss), equity accounted | 0.93 | 0.36 | 0.37 | ||
| Profit attributable to owners of parent | 329.8 | 177.4 | 311.7 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total consolidated equity including NCI | 2,818 | 3,144 | 4,000 | 4,119 | 4,949 |
| Total debt including leases and buyers credit | 783.1 | 936.3 | 991.2 | 1,522 | 1,896 |
| Cash and cash equivalents | 16.3 | 62.9 | 23.3 | 70.5 | 37.7 |
| Current net trade receivables | 1,896 | 1,886 | 2,215 | 1,892 | 2,212 |
| Inventories | 573.4 | 757.9 | 774.4 | 898.8 | 1,416 |
| Trade payables excluding borrowing/supplier finance | 1,267 | 1,118 | 807.6 | 1,079 | 1,007 |
| Net property, plant and equipment excluding ROU | 60.7 | 34.7 | 495.9 | 630.2 | 913.4 |
| Tangible capital work in progress | 65.0 | 110.1 | 154.1 | 200.0 | 85.0 |
| Total assets | 5,171 | 5,473 | 6,487 | 7,546 | 8,868 |
| Non-current net trade receivables | 520.3 | 409.9 | 269.8 | ||
| Noncurrent financial borrowings excluding leases | 169.2 | 389.9 | 389.9 | ||
| Current financial borrowings including current maturities | 808.1 | 951.2 | 1,323 | ||
| Current and noncurrent lease liabilities | 14.0 | 18.7 | 31.0 | ||
| Operational buyers credit | 0.00 | 162.2 | 152.0 | ||
| Current investments not all liquid | 5.19 | 1.30 | 41.3 | ||
| Other bank balances predominantly restricted | 313.0 | 420.8 | 430.8 | ||
| Intangibles excluding goodwill | 118.1 | 178.6 | 247.7 | ||
| Intangible assets under development | 314.9 | 401.9 | 401.3 | ||
| Unpledged redeemable mutual funds eligible for liquidity | 0.35 | 0.35 | 0.32 | ||
| Analytical all-in net debt | 967.5 | 1,451 | 1,858 | ||
| Company reported narrower net debt | 953.9 | 1,271 | 1,676 | ||
| Current plus noncurrent net trade receivables | 2,736 | 2,302 | 2,482 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net operating cash flow after taxes | 910.6 | 401.5 | -44.9 | 396.0 | -378.1 |
| Free cash flow (vendor definition) * | 22.3 | -106.4 | -454.9 | -13.2 | -723.4 |
| Cash dividends (outflow negative) | -19.1 | -24.5 | -28.6 | -28.8 | -14.4 |
| Cash capex including intangible development (outflow negative) | -144.5 | -192.4 | -410.0 | -409.2 | -345.3 |
| PPE CWIP and capital advances cash outflow | -183.5 | -230.2 | -230.2 | ||
| Intangible assets and development cash outflow | -226.5 | -179.0 | -115.1 | ||
| Borrowings repaid excluding lease principal (outflow negative) | -91.2 | -231.5 | -198.4 | ||
| Lease liabilities cash repayment | -6.86 | -10.1 | -14.9 | ||
| Payments for investment acquisitions not business acquisitions | 0.00 | -4.45 | -3.00 | ||
| Business acquisition cash outflow separately identifiable | 0.00 | n.d. | n.d. | ||
| CFO less total cash capex | -454.9 | -13.2 | -723.4 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Legal issued shares including ESOP trust | 131.47 | 137.92 | 144.10 | 144.27 | 153.06 |
| Consolidated share capital shares net of ESOP trust | 144.01 | 144.21 | 153.03 | ||
| Materials cost / revenue (fraction) | 0.72 | 0.72 | 0.65 | ||
| Other expenses / revenue (fraction) | 0.07 | 0.08 | 0.11 | ||
| Effective tax rate (fraction) | 0.26 | 0.26 | 0.26 | 0.20 | 0.23 |
| Minority share of PAT (fraction) | 0.02 | -0.02 | 0.05 | ||
| Revenue outside Telecom Products | 2,603 | 1,674 | 1,716 | ||
| Diluted weighted shares implied by EPS (crore) | 141.55 | 144.24 | 146.36 |
| Quarterly profit and loss (₹ crore) | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 1,012 | 800.7 | 871.0 | 1,043 | 1,211 | 1,824 | 1,915 | 2,542 |
| Cost of revenue (vendor classification) * | 699.4 | 649.6 | 635.1 | 753.7 | 1,169 | 1,172 | ||
| Other operating costs (vendor classification) * | 66.2 | 96.3 | 102.2 | 120.8 | 203.2 | 182.3 | ||
| EBITDA (vendor classification) * | 172.5 | -23.4 | 43.1 | 244.6 | 336.2 | 445.3 | ||
| EBIT * | 147.0 | -53.9 | 10.9 | 200.9 | 290.7 | 394.0 | ||
| Finance cost | 46.8 | 51.1 | 55.6 | 60.9 | 62.8 | 62.8 | 62.5 | 65.3 |
| Profit before tax | 100.3 | -104.9 | -44.7 | 106.3 | 138.1 | 227.9 | 331.5 | 538.6 |
| Tax | 27.7 | -21.6 | -15.4 | 34.4 | 35.7 | 43.5 | 85.9 | 144.4 |
| Profit after tax | 72.6 | -83.3 | -29.3 | 71.9 | 102.4 | 184.5 | 245.6 | 394.2 |
| Diluted EPS (₹) | 0.51 | -0.56 | -0.22 | 0.47 | 0.67 | 1.21 | 1.49 | 2.36 |
| Materials/services, traded purchases and inventory movement | 699.4 | 649.4 | 635.1 | 644.3 | 753.7 | 1,169 | 1,172 | |
| Employee benefits expense | 94.5 | 90.9 | 105.4 | 94.2 | 108.2 | 137.4 | 147.1 | |
| Other expenses | 66.2 | 96.3 | 102.2 | 114.5 | 120.8 | 203.2 | 182.3 | |
| Operating EBITDA excluding other income | 151.9 | -36.0 | 28.4 | 190.3 | 228.1 | 314.7 | 414.1 | 630.5 |
| Other income | 20.0 | 13.6 | 14.5 | 13.0 | 15.4 | 22.3 | 31.2 | 27.5 |
| Depreciation and amortisation | 25.5 | 30.4 | 32.2 | 35.9 | 43.8 | 45.5 | 51.3 | 53.7 |
| Exceptional items | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Non-controlling interests | -1.06 | -1.86 | 2.95 | 4.05 | 4.75 | 5.95 | 17.0 | 31.3 |
| Share of profit/(loss) of jointly controlled entities | 0.65 | -1.10 | 0.19 | -0.20 | 1.12 | -0.74 | -0.02 | -0.34 |
| Profit attributable to owners | 73.7 | -81.4 | -32.2 | 67.9 | 97.6 | 178.5 | 228.6 | 362.9 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 6.8% | 0.4% | -5.7% | -9.0% | 21.8% |
| EBITDA margin | 13.0% | 11.0% | 15.4% | ||
| Net margin | 7.4% | 4.4% | 6.3% | ||
| Return on equity | 9.2% | 4.4% | 6.9% | ||
| Return on capital employed | 16.0% | 13.4% | 11.7% | 7.6% | 9.5% |
| Return on assets | 5.5% | 2.5% | 3.8% | ||
| Net debt (₹ crore) | 967.5 | 1,451 | 1,858 | ||
| Net debt / EBITDA | 1.66x | 3.23x | 2.44x | ||
| Interest cover | 6.93x | 6.21x | 3.61x | 2.17x | 2.45x |
| Asset turnover | 0.91x | 0.89x | 0.75x | 0.58x | 0.60x |
| Receivable days | 147 | 145 | 181 | 170 | 163 |
| Inventory days (on revenue) | 44 | 58 | 63 | 81 | 104 |
| Payable days (on revenue) | 98 | 86 | 66 | 97 | 74 |
| Cash conversion | -0.14x | 2.23x | -1.21x | ||
| Capex intensity | 3.1% | 4.1% | 9.2% | 10.1% | 7.0% |
| Free cash flow (₹ crore) | 766.2 | 209.0 | -454.9 | -13.2 | -723.4 |
| Dividend payout | 8.7% | 16.3% | 4.6% | ||
| EPS, diluted (₹) | 2.38 | 2.18 | 2.33 | 1.23 | 2.13 |
| Book value per share (₹) | 21.44 | 22.80 | 27.76 | 28.55 | 32.33 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (Operating EBITDA excluding other income) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Analytical all-in net debt; negative is net cash.
- Net debt / EBITDA: net debt / EBITDA (Operating EBITDA excluding other income).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 4, information to 19 Oct 2026); market data at the close of 19 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on HFCL includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on HFCL
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Prices are the last close on the NSE, 23 Oct 2026. Research from Mool’s report of 19 Oct 2026; page updated 25 Oct 2026.
Mool’s research is written by AI agents and published by Mool Capital Private Limited, a SEBI-registered Research Analyst, registration INH000012449, which is responsible for it. This page shows factual company information and an excerpt of that research; it carries no rating and is not investment advice for any individual. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Read the disclosures.