HFCL Reports Record FY26 Performance with 21.77% Revenue Growth, Announces Dividend and Strategic Restructuring Committee

HFCL Limited announced its audited financial results for the fourth quarter and financial year ended March 31, 2026, reporting its strongest-ever annual performance with significant expansion in margins and revenue growth. The Board of Directors, in its meeting held on April 30, 2026, approved the financial results and recommended a dividend of 20%, or Re. 0.20 per equity share of face value Re. 1/- each, subject to shareholder approval at the ensuing Annual General Meeting.

The company delivered consolidated revenue of ₹4,949.27 crore in FY26, up from ₹4,064.52 crore in FY25, representing growth of 21.77%. Quarterly revenue for Q4FY26 stood at ₹1,824.12 crore compared to ₹800.72 crore in the corresponding quarter of the previous year, an increase of 127.81%. Profit after tax for the full year increased to ₹329.44 crore from ₹173.26 crore in FY25, recording growth of 90.14%. On a standalone basis, the company reported quarterly revenue of ₹1,511.24 crore and PAT of ₹177.58 crore for Q4FY26.

Key Financial Performance

Particulars FY26 (₹ crore) FY25 (₹ crore) Change (%) Consolidated Revenue 4,949.27 4,064.52 21.77% EBITDA 826.75 506.75 63.15% EBITDA Margin 16.70% 12.47% 423 bps Profit After Tax 329.44 173.26 90.14% PAT Margin 6.66% 4.26% 240 bps

The order book grew phenomenally to ₹21,206 crore, the highest ever, compared to ₹9,967 crore in FY25, providing strong multi-year revenue visibility. Export revenue increased to ₹2,047 crore, representing 41% of total revenue in FY26, compared to ₹497 crore (12% of revenue) in the previous year.

Strategic Initiatives and Restructuring

The Board constituted a Strategic Restructuring Committee to evaluate various strategic options for business and structural realignment across the company's multiple business verticals, including Telecom, Defence, and Engineering, Procurement and Construction (EPC). The committee will examine options including demerger, business transfer, slump sale, consolidation, divestment, or any other form of corporate restructuring.

The committee composition includes Mr. Mahendra Nahata, Managing Director as Chairperson, Mr. Ajai Kumar, Independent Director, Mr. Arvind Kharabanda, Non-Executive Director, Mr. V.R. Jain, Chief Financial Officer, and Mr. Manoj Baid, President and Company Secretary as members.

Business Segment Performance

Segment-wise revenue for FY26 showed Telecom Products at ₹2,931.01 crore, Turnkey Contracts and Services at ₹1,875.01 crore, Defence Products and Services at ₹76.70 crore, and Others at ₹66.55 crore on a consolidated basis. The company continues to strengthen its capabilities in the defence sector through sustained investments in technology and product development, with a portfolio including Thermal Weapon Sights, Electronic Fuzes, Radars, and Multi Mode Hand Grenades.

The auditors, M/s S. Bhandari & Co. LLP and M/s Oswal Sunil & Company, Chartered Accountants, issued audit reports with unmodified opinion on the annual audited financial results for the financial year ended March 31, 2026, both on standalone and consolidated basis.

HFCL Limited has successfully concluded its Extra-Ordinary General Meeting (EGM) held on April 24, 2026, with shareholders demonstrating strong support for the company's strategic initiatives. The meeting, conducted through video conferencing in compliance with regulatory guidelines, saw overwhelming approval for a critical corporate resolution.

Shareholder Participation and Voting Process

The EGM witnessed significant shareholder engagement with comprehensive e-voting arrangements. As of the record date April 17, 2026, the company had 8,01,668 total shareholders. The company successfully sent meeting notices via email to 7,89,394 shareholders on April 01, 2026, ensuring wide dissemination of information.

Voting Parameter Details Total Shareholders (Record Date): 8,01,668 Notices Sent via Email: 7,89,394 Remote E-voting Period: April 21-23, 2026 Meeting Date & Time: April 24, 2026, 1:00 PM IST Meeting Duration: 1:00 PM to 1:46 PM

The remote e-voting facility remained open from Tuesday, April 21, 2026 (09:00 A.M.) to Thursday, April 23, 2026 (05:00 P.M.), providing shareholders ample opportunity to participate in the decision-making process.

Resolution Results and Voting Breakdown

The special resolution regarding "Issue of Securities on a Preferential Basis" received remarkable shareholder support. A total of 565 members participated in the voting process, casting 73,01,17,456 valid votes.

Voting Results Members Votes Cast Percentage Total Valid Votes: 565 73,01,17,456 100.00% Votes in Favor: 497 72,56,46,376 99.39% Votes Against: 68 44,71,080 0.61%

The voting process included both remote e-voting (551 members casting 72,94,52,021 votes) and e-voting during the EGM (14 members casting 6,65,435 votes). No invalid votes were recorded, demonstrating the effectiveness of the electronic voting system.

Category-wise Voting Analysis

The resolution received strong support across all shareholder categories. Promoter and Promoter Group showed unanimous support with 100% votes in favor, while institutional and non-institutional public shareholders also demonstrated substantial backing.

Shareholder Category Shares Held Votes Polled Polling % Votes in Favor % Promoter and Promoter Group: 43,30,44,594 43,30,44,594 100.00% 100.00% Public-Institutions: 23,45,39,838 21,21,93,892 90.47% 97.93% Public-Non Institutions: 86,30,18,031 8,48,78,970 9.84% 99.90%

Regulatory Compliance and Scrutinizer Report

CS Baldev Singh Kashtwal (Membership No. FCS 3616) served as the appointed scrutinizer for the voting process. The scrutinizer was appointed by the Board of Directors on March 25, 2026, and submitted the consolidated report on April 24, 2026, ensuring full compliance with Section 108 of the Companies Act, 2013 and SEBI Listing Regulations.

The company engaged National Securities Depository Limited (NSDL) as the service provider for the e-voting facility. The voting process was unblocked at approximately 02:20 PM on April 24, 2026, following the conclusion of the EGM proceedings.

Meeting Attendance and Participation

The EGM saw active participation through video conferencing, with 6 promoter and promoter group members and 58 public shareholders attending the meeting. The meeting commenced at 1:00 PM IST and concluded at 1:46 PM, efficiently addressing the single agenda item.

The company also fulfilled its regulatory obligations by publishing advertisements in multiple newspapers on April 02, 2026, including Indian Express (English), Divya Himachal (Hindi), and Jansatta (Hindi) editions, ensuring comprehensive information dissemination to all stakeholders.

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