HFCL profit surges over fivefold on AI data centre fibre demand

HFCL's earnings in the second quarter of FY2027 represent a dramatic turnaround from the Rs 72 crore net profit posted in the same period last year, underscoring the company's exposure to the booming data centre infrastructure sector. The Gurugram-based manufacturer said consolidated revenue from operations more than doubled to Rs 2,541.79 crore during the quarter, reflecting robust order flows for high-capacity fibre connectivity solutions.

Managing director Mahendra Nahata described the results as a watershed moment for the company. "This is the best-ever quarterly performance in HFCL's history and marks a defining moment in our growth journey," he said in a regulatory statement. "The results reflect the increasing scale, strength and momentum of our business and reinforce our confidence in HFCL's ability to deliver sustained growth and create enduring value for stakeholders."

The company has raised its growth expectations significantly in light of the robust operational performance. HFCL now forecasts 80 per cent revenue growth across the full financial year 2027 compared with FY2026, and has accelerated its timeline to reach the Rs 10,000 crore revenue milestone, now expected before the previously targeted fiscal year 2029.

The strong performance reflects broader industry trends, as major technology companies race to expand AI computing infrastructure globally, requiring vast quantities of optical fibre cables for data transmission. HFCL's positioning as a domestic supplier of such critical components has placed it at the forefront of this infrastructure boom.