HFCL Limited

April 30, 2026

We had articulated a clear set of strategic priorities to expand our global export footprint, rebalance our customer mix towards private sector clients, and increase the share of productled revenues over EPC with margin expansion. I am pleased to share that we have delivered decisively on each of these fronts. Our export revenues increased from 4.54% in FY21 to 41.36% in FY26, reflecting a meaningful expansion of our global footprint. At the same time, our government order book exposure reduced from 51% in FY21 to ₹37% in FY26, with a corresponding increase in private sector participation, improving the overall composition and resilience of our business. Further, the share of product revenues in our mix rose from 27% in FY21 to 62% in FY26, underscoring our successful transition towards a more marginaccretive, product-led model. Together, these outcomes mark a significant transformation in our business model, positioning us on a stronger, more sustainable, and growth-oriented trajectory. We are also witnessing gradual improvement in working capital cycles, supported by better execution discipline and a more favourable business mix. We also remain committed to our ESG priorities. During the period, HFCL received ESG ratings from multiple independent agencies and published its first Sustainability Report, reinforcing our commitment to responsible and sustainable growth. Importantly, during the period, the Board has approved a preferential issuance of warrants to the promoters, aggregating to approximately ₹555 crore, subject to necessary approvals. This reflects the promoters' continued confidence in the Company's long-term growth strategy and their commitment to supporting the next phase of expansion, including preform integration, defence scaling, and augment long-term working capital resources. Let me now quickly take you through the consolidated financial performance for FY26 and Q4FY26: For the twelve months ended 31st March 2026, the Company reported consolidated revenue of ₹4949.27 Crores as against ₹4064.52 Crores in FY 2025, EBIDTA of ₹826.75 Crores as against ₹506.75 Crores in FY 2025, Profit before Tax of ₹427.68 Crores as against ₹216.59 Crores in FY 2025 and Profit after tax of ₹329.44 Crores as against ₹173.26 Crores in FY 2025 Revenue for Q4FY26 stood at Rs.1824.12 crore as compared to Rs. 1210.79 crore in Q3 FY26 and Rs. 800.72 crore in Q4 FY25. EBITDA for Q4FY26 stood at Rs. 336.93 crore as compared to Rs. 243.52 crore in Q3 FY26 and Rs. - 22.33 crore in Q4 FY25; EBITDA margin in Q4FY26 stood at 18.47% as compared to 20.11% in Q3FY26 and - 2.79% for Q4 FY25. Profit After Tax for Q4FY26 stood at INR 184.45 crore as compared to INR 102.37 crore in Q3 FY26 and INR - 83.30 crore in Q4 FY25; PAT margin in Q4FY26 stood at 10.11% as compared to 8.45% in Q3FY26 and - 10.40% in Q4 FY25. Segment revenue from telecom products stood at 66% of total revenue in Q4 FY26 as compared to 57% in Q3FY26 and 74% in Q4 FY24. As we look ahead, we believe that HFCL is entering a structurally stronger and very predictable growth phase. We are not only experiencing a substantial expansion in our order book, but also a meaningful uplift in its business composition, reflected in a higher share of exports, long-term contracts, and a greater contribution from high-margin products. At the same time, our strategic initiatives including backward integration into preform, expansion in defence sector, increasing global footprint, and focus on product-led growth are creating a powerful foundation for sustained margin expansion and return improvement.

Ernst & Young was appointed as strategic advisor for an evaluation of various alternatives.

Fuzes underwent trials in Balasore at a DRDO range, require upgradation to a couple of fuzes, and will be resubmitted for evaluation in about two months.

Growth was attributed both to price increases and volume from new capacity, with two new machines being installed at the time of the call and another couple by the next call.

HFCL GROUP

• Segment revenue from telecom products stood at 85% of total revenue in Q1 FY27 as compared to 62% in Q1FY26 and 85% in Q4 FY26.
• Export revenue stood at Rs. 1063 crores in Q1FY27 as compared to Rs. 210 crores in Q1FY26 and Rs. 1212 crores in Q4FY26

During the quarter, the Company delivered healthy growth in revenue while continuing to improve profitability. I am particularly encouraged by the improvement in the quality of our earnings. The increasing contribution from technology-led products, exports and value-added solutions, together with disciplined execution and favourable industry dynamics, is enabling us to build a stronger and more resilient business.