HFCL Ltd.

NSE: HFCL · Telecom - Infrastructure

52W Range₹60 ₹257

Snapshot

Unlock HFCL Ltd.'s vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

HFCL Limited is a technology enterprise specialising in the manufacturing of high-end telecom equipment and the provision of turnkey network solutions. Its portfolio spans optical fibre cables, microwave radio systems, and 5G-enabled products, alongside integrated infrastructure services for railways and utility sectors.

Business Model

The company generates revenue through the manufacturing and sale of telecom hardware and by executing large-scale turnkey projects for network integration and infrastructure deployment. It operates through two primary segments: Telecom Products and Turnkey Contracts and Services.

Growth Outlook

Growth is driven by the expansion of 5G infrastructure, including a strategic collaboration with Qualcomm for 5G FWA and CPE product development. The company is also capitalising on modernisation initiatives within the Indian railway and utility sectors.

Key Risks

  • Technological Obsolescence. Rapid advancements in telecommunications technology may render existing product lines obsolete if the company fails to innovate continuously.
  • Project Execution Risk. As a provider of large-scale turnkey contracts, the company faces risks related to project delays, cost overruns, and regulatory hurdles in infrastructure deployment.
  • Supply Chain Dependency. Reliance on global semiconductor and component suppliers for 5G and microwave equipment exposes the company to geopolitical trade tensions and supply chain disruptions.
  • Concentration Risk. Significant dependence on the Indian telecom and railway sectors makes the company vulnerable to shifts in government spending and domestic capital expenditure cycles.

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Key Metrics

REVENUE

₹5,993 Cr

TTM · consolidated

+58.7%YoY

NET PROFIT

₹604 Cr

TTM · consolidated

+1714.4%YoY

EPS

₹3.84

TTM · consolidated

+1500.0%YoY

RETURN ON EQUITY

13.4%

TTM · consolidated

+12.6 ppYoY

RETURN ON CAPITAL EMPLOYED

20.7%

TTM · consolidated

+15.3 ppYoY

P/E

60.3x

Q1 FY27 · consolidated

60.3 vs 505.2x5Y avg

EV/EBITDA

30.2x

Q1 FY27 · consolidated

30.2 vs 64.0x5Y avg

EBITDA MARGIN

20.5%

TTM · consolidated

+10.9 ppYoY

NET PROFIT MARGIN

12.8%

Q1 FY27 · consolidated

+16.2 ppYoY

DEBT TO EQUITY

0.3x

Q1 FY27 · consolidated

+0.02xYoY

Peers · Telecom - Infrastructure

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
HFCL Ltd.HFCL
₹35,424 Cr60.2730.2058.7%20.5%13.4%20.7%+230.7%
Altius Telecom Infrastructure TrustALTIUSINVIT
₹54,244 Cr41.0%
Pace DigitekPACEDIGITK
₹3,617 Cr10.728.1318.7%14.3%17.4%
Vindhya TelelinkVINDHYATEL
₹3,238 Cr13.6517.53-17.5%7.8%5.7%4.6%+81.2%
Bondada Engineering LimitedBONDADA
₹3,152 Cr12.0%-28.2%
GTL Infrastructure LimitedGTLINFRA
₹1,486 Cr1.4115.161.4%32.8%-19.3%-48.9%-22.1%

As of Q1 FY27

Financials