Synopsis: Telecom stock shares surged 6% after Q3FY26 results, reporting 42% EBITDA growth, 11.5% QoQ order book rise to Rs. 11,125 cr, strong revenue and PAT growth, expanding optical fibre capacity, and significant government, export, and defence orders.
The shares of the company engaged in offering diverse infrastructure with active interest spanning telecom infrastructure development, system integration, and more is in the spotlight after its shares jumped by 6% following Q3 results and significant order book growth.
With a market capitalisation of Rs. 10,372 cr, the shares of HFCL Ltd were trading at Rs. 67.78 per share, jumping 6% in today’s market session, making a high of Rs. 70.12, up from its previous close of Rs. 66.38 per share. The stock has fallen 33% over the past year, is down 2% year-to-date, has declined 10% in the last six months, and has been largely flat over the past month.
Q3FY26 Results
YoY Performance
Revenue from operations increased by 19.65% to Rs. 1,210.79 cr compared to Rs. 1,011.95 in Q3FY25, driving total income up 18.82% to Rs. 1,226.21 cr. EBITDA saw a strong rise of 41.67%, reaching Rs. 243.52 cr from Rs. 171.89 cr, with the EBITDA margin improving to 20.11% from 16.99% in Q3FY25.
PBT grew 37.75% to Rs. 138.11 cr from Rs. 100.26 cr, while PAT increased 41.04% to Rs. 102.37 cr from Rs. 72.58. Total comprehensive income surged 263.66%, reflecting a significant positive shift in overall profitability. EPS rose 31.37% to Rs. 0.67 from Rs. 0.51.
QOQ Performance
Compared to Q2FY26, total income increased 16.08% to Rs. 1,226.21 cr from Rs. 1,056.38 cr, led by a 16.05% rise in revenue from operations from Rs. 1,043.34 cr to Rs. 1,210.79 cr. EBITDA jumped 19.74% to Rs. 243.52 cr from Rs. 203.37 cr, with the margin improving by 62 bps to 20.11% from 19.49%.
PBT increased 29.88% to Rs. 138.11 cr from Rs. 106.34 cr, and PAT grew 42.34% to Rs. 102.37 cr from Rs. 71.92 cr, with the PAT margin expanding 156 bps to 8.45%. Total comprehensive income rose 26.85% from Rs. 64.13 cr to Rs. 81.35 cr, and EPS improved 42.55% to Rs. 0.67, indicating strong sequential operational and profitability momentum.
Order Book
The order book shows a diversified distribution across both categories and customer segments. By category, the total order book amounts to Rs. 11,125 cr, with Products leading at Rs. 4,568 cr, followed by O&M at Rs. 3,522 cr, and Network Services at Rs. 3,035 cr.
From a customer perspective, Government orders constitute the majority, totalling Rs. 7,743 cr, while Private sector orders account for Rs. 3,382 cr. Comparatively, the order book has increased from Rs. 9,981 cr in Q2FY26 to Rs. 11,125 cr in Q3FY26, which is 11.5 percent increase reflecting a significant quarter-on-quarter growth.
Business Highlights
HFCL is benefiting from a global recovery in optical fibre demand, driven by data centres, AI networks, and hyperscaler connectivity. Export orders reached USD 192 million, making up 27% of revenues. OFC capacity will increase from 30.5 mn fkm to 42.36 mn fkm by June 2026, and OF capacity has doubled to 28 mn fkm, with 6 mn fkm more by December 2026. The company also developed a 3456-fibre Micro Duct IBR cable, its highest fibre-count cable.
It also secured defence orders across radars, electronic fuzes, electro-optic systems, and UAV thermal cameras. It received 329 acres in Andhra Pradesh for a defence manufacturing facility, with the balance land under process.
HFCL is a leading global technology company connecting billions of people, devices, and systems. For over 30 years, it has driven business transformations by harnessing the power of connectivity. It designs, integrates, and delivers next-gen technology products and solutions. Some of its strong technology partners are Qualcomm, Wipro, Capegemini, VVDN, Broadcom, IP infusion and etc.
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