Rs 9,967 Crore Order Book: Telecom infra company posts Q1FY26 Results, Reports Net Loss, Approves Rs 700 Crore Fundraising Plan

HFCL announced its Quarterly Results for Q1FY26 on Friday, July 25, reporting a consolidated net loss of Rs 32.24 crore, compared to a profit of Rs 111.30 crore in the same quarter of the previous financial year. The decline in profitability was driven by a 25 per cent year-on-year fall in revenue from operations, which stood at Rs 871.02 crore, down from Rs 1,158.24 crore in Q1FY25.

On a sequential basis, the company saw an 8.78 per cent quarter-on-quarter growth in revenue, rising from Rs 800.72 crore in Q4FY25. Segment-wise, revenue from the telecom products division dropped 18.76 per cent YoY to Rs 577.91 crore, while the turnkey contracts and services segment declined 34.34 per cent YoY to Rs 293.11 crore.

At the operational level, HFCL’s EBITDA came in at Rs 29 crore, marking an 83 per cent decline compared to Rs 174 crore in the corresponding quarter of the previous year. The EBITDA margin contracted significantly to 3.3 per cent from 15 per cent in Q1FY25.

The company’s board of directors has approved a fundraising plan of Rs 700 crore through tranches, subject to shareholder approval at the upcoming annual general meeting. The capital will be raised via fully paid-up equity shares, convertible preference shares, debentures, and other permissible instruments, including public issues, rights issues, preferential allotments, and private placements.

HFCL stated that the funds would be deployed towards strengthening its capital base, reducing debt, and financing growth opportunities in defence and telecommunications. The proceeds will also support strategic initiatives, acquisitions, and working capital requirements.

From its 52-week low the stock is up by 5 per cent only.

Disclaimer: The article is for informational purposes only and not investment advice.