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Earnings Presentation Feb 2026HFCL LIMITED
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01 Message from the MD 04 Appendix 02 Financials 03 The HFCL Story Inside this Presentation
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Message from the MD 01 03 HFCL LIMITED | INVESTOR PRESENTATION 2026
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Public Communications : The global optical fibre cable industry is witnessing a demand recovery driven by data centre expansion, AI-led network investments, and hyperscaler connectivity requirements. During the quarter, HFCL secured export orders of approximately USD 192 million, increasing export contribution to 27% of revenues and reinforcing its growing global footprints. OF and OFC capacity expansion is progressing well. OFC capacity will rise from 30.5 mn fkm to 42.36 mn fkm by June 2026. OF capacity has already doubled from 14 mn fkm to 28 mn fkm, with the balance 6 mn fkm to be added progressively by December 2026. Early-quarter logistics and tariff- related challenges have now stabilised, and deferred dispatches are expected to support current quarter revenue. HFCL also strengthened its technology leadership with the development of a 3456-fibre Micro Duct IBR cable, the highest fibre-count cable manufactured by the Company. Defence Equipment : HFCL continued to progress its defence electronics business during the quarter, securing key defence orders across radars, electronic fuzes and electro-optic systems, and a domestic contract for indigenously developed thermal cameras for UAV surveillance. The Company also received land allotment letter of 329 acres in Andhra Pradesh for setting up defence manufacturing facility. The allotment for the balance land is under process. Mahendra Nahata PROMOTER AND MANAGING DIRECTOR Business Updates : During the quarter, HFCL made steady progress across its core strategic priorities, supported by a sharp recovery in global optical fibre demand, strengthening export momentum, and continued execution across its telecom product and defence portfolios. The Company’s order book stood at ₹11,125 crore as on 31 December 2025, providing healthy revenue visibility across products and services. Revenue mix continued to improve, with products contributing 60% and exports 27% of revenues, reflecting the Company’s ongoing transition towards a product-led and internationally diversified business model. Capacity expansion in optical fibre and optical fibre cables progressed as planned, positioning HFCL well to address rising demand from data centres, next- generation networks and global customers. REVENUE (₹ in Cr) Key Financial Metrics for Q3FY26 EBITDA (₹ in Cr) PAT (₹ in Cr) PAT MARGIN EBITDA MARGIN Message from the Managing Director 04 1210.79 243.52 102.37 20.11% 8.45% HFCL LIMITED | INVESTOR PRESENTATION 2026
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Financials 02 06 Q3FY26 – Consolidated P&L Statement 07 9MFY26 – Consolidated P&L Statement 09 Order Book 5 HFCL LIMITED | INVESTOR PRESENTATION 2026
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Q3FY26 - Consolidated Profit & Loss Statement 6 Particulars (₹ IN CRORES) Q3FY26 Q2FY26 Change Q-o-Q Q3FY25 Change Y-o-Y Revenue from Operations 1,210.79 1,043.34 16.05% 1,011.95 19.65% Other Income 15.42 13.04 20.04 Total Income 1,226.21 1,056.38 16.08% 1,031.99 18.82% Total Expenses 982.69 853.01 860.10 EBITDA 243.52 203.37 19.74% 171.89 41.67% EBITDA Margin 20.11% 19.49% 62 Bps 16.99% 312 Bps Depreciation 43.77 35.93 25.52 Finance Cost 62.76 60.90 46.76 Share of net profits / (loss) of JV's accounted using equity method 1.12 -0.20 0.65 Exceptional Items - - - PBT 138.11 106.34 29.88% 100.26 37.75% PBT Margin 11.41% 10.19% 122 Bps 9.91% 150 Bps Tax 35.74 34.42 27.68 Profit after Tax 102.37 71.92 42.34% 72.58 41.04% PAT Margin 8.45% 6.89% 156 Bps 7.17% 128 Bps Other Comprehensive Income -21.02 -7.79 -50.21 Total Comprehensive Income 81.35 64.13 26.85% 22.37 263.66% EPS (Diluted ₹) 0.67 0.47 42.55% 0.51 31.37% HFCL LIMITED | INVESTOR PRESENTATION 2026
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9MFY26 - Consolidated Profit & Loss Statement 7 Particulars (₹ IN CRORES) 9MFY26 9MFY25 Change YoY Revenue from Operations 3,125.15 3,263.80 -4.25% Other Income 42.99 44.12 Total Income 3,168.14 3,307.92 -4.23% Total Expenses 2,678.32 2,778.84 EBITDA 489.82 529.08 -7.42% EBITDA Margin 15.67% 16.21% -54 Bps Depreciation 111.90 75.07 Finance Cost 179.28 133.95 Share of net profits / (loss) of JV's accounted using equity method 1.11 1.46 Exceptional Items - - PBT 199.75 321.52 -37.87% PBT Margin 6.39% 9.85% -346 Bps Tax 54.76 64.96 Profit after Tax 144.99 256.56 -43.49% PAT Margin 4.64% 7.86% -322 Bps Other Comprehensive Income 10.11 18.96 Total Comprehensive Income 155.10 275.52 -43.71% EPS (Diluted ₹) 0.92 1.79 -48.60% HFCL LIMITED | INVESTOR PRESENTATION 2026
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Consolidated Balance Sheet 8 EQUITIES & LIABILITIES (₹ IN CRORES) H1FY26 FY25 FY24 FY23 Total - Shareholder Funds 4,178.71 4,119.32 3,999.83 3,144.14 NON CURRENT LIABILITIES (A) Financial Liabilities (i) Borrowings 445.25 389.90 169.21 110.37 (ii) Other Liabilities 17.42 9.73 9.07 6.20 (B) Other Non Current Liabilities 154.53 139.47 124.77 69.72 Total - Non – Current Liabilities 617.20 539.10 303.05 186.29 CURRENT LIABILITIES (i) Borrowings 1,106.42 951.16 808.05 637.94 (ii) Other Liabilities 2,057.14 1,936.71 1,375.90 1,504.22 Total – Current Liabilities 3,163.56 2,887.87 2,183.95 2,142.16 GRAND TOTAL - EQUITIES & LIABILITES 7,959.47 7,546.29 6,486.83 5,472.59 ASSETS (₹ IN CRORES) H1FY26 FY25 FY24 FY23 (A) Tangible Assets 962.87 846.90 661.75 574.91 (B) Goodwill 26.17 26.17 26.17 26.17 (C) Other Intangible Assets 622.39 580.40 433.01 215.31 (D) Investment in Associates / JV 20.85 19.86 19.50 18.57 (E) Financial Assets (i) Trade receivables 382.28 409.86 520.31 423.11 (ii)Other Financial Assets 209.98 220.84 232.48 92.82 (F) Other Non Current Assets 65.00 71.58 78.53 39.55 Total - Non – Current Assets 2,289.54 2,175.61 1,971.75 1,390.44 (A) Inventories 1,151.40 898.84 774.42 757.85 (B) Financial Assets (i) Trade Receivables 1,898.40 1,891.73 2,215.48 1,886.11 (ii) Cash & Bank Balances 336.54 491.32 336.35 322.59 (iii) Others 679.17 627.34 198.94 567.44 (C) Other Current Assets 1,604.42 1461.45 989.89 548.17 Total – Current Assets 5,669.93 5,370.68 4,515.08 4,082.16 GRAND TOTAL – ASSETS 7,959.47 7,546.29 6,486.83 5,472.59 HFCL LIMITED | INVESTOR PRESENTATION 2026
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Order book 9 Order Book Category Wise (₹ IN CRORES) Order Book Customer Wise (₹ IN CRORES) Network Services 3,035 O&M 3,522 PRODUCTS 4,568 Government 7,743 Private 3,382 Order Book (₹ IN CRORES) 9,981 11,125 Q2FY26 Q3FY26 HFCL LIMITED | INVESTOR PRESENTATION 2026
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The HFCL Story 03 11 About HFCL 12 Product Portfolio 15 Network Solutions and Projects 16 Strong Manufacturing Presence 17 Expanding Manufacturing capabilities 18 Revenue Mix Optimization 19 Research & Development 21 Customers and Partners 22 What sets HFCL Apart? 23 Growth Strategy 24 Shareholders’ Information 10 HFCL LIMITED | INVESTOR PRESENTATION 2026
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Defense System Integration 60+ COUNTRIES OF PRESENCE #1 OPTICAL FIBER CABLE SUPPLIER IN INDIA 07 MANUFACTURING FACILITIES HFCL is a leading player in the telecom, defense, and enterprise connectivity ecosystems. 11 03 Research & Development CENTRES Diversified Presence We operate across three high-growth segments: Market Leadership HFCL is at the forefront of India’s telecom and digital infrastructure growth, enabling 5G rollouts and fiber connectivity. Telecom Optic Fiber / Optic Fiber Cables, Telecom and Networking Products (Access and Transmission) and Passive Connectivity Solutions Ground and Coastal Surveillance Radars, Electro Optics, Electronic Fuzes, HCRR, Tactical Cables and wire harnesses. Executing and maintaining large scale telecom and defence communication projects HFCL LIMITED | INVESTOR PRESENTATION 2026
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Product Portfolio 12 Telecom Defence 1 2 3 4 5 Electronics Products 1. Electronic FUZE 2. High-capacity Radio Relay 3. Ground Surveillance Radar 4. Thermal Imaging Core (TI Core) 5. Thermal Weapon Sights (TWS) 6. Multi Mode Hand Grenade Empowering global telcos with a wide range of new age products Innovator in Indian defence technology space through indigenously developed products Networking Products 1 2 3 54 1. Point to Point and Point to Multipoint UBR 2. Indoor & Outdoor Wi-Fi 5, 6 and 7 Access Points 3. AI powered Cloud Network Management System 4. Ethernet L2 /L3 Switches 5. 5G Indoor & Outdoor FWA CPE 6. IP/ MPLS Routers Optic Fiber/ Optical Fibers Cables 1 2 3 4 5 6 7 1. Optic Fiber 2. Armoured and Unarmoured Cable 3. Micro Cable 4. Micro Module Cable 5. Ribbon Cable 6. FTTH Cable 7. IBR Cable 8. Data Centre Products 6 HFCL LIMITED | INVESTOR PRESENTATION 2026 6
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Product Portfolio 13 Passive Connectivity Solutions 1. Cable Assemblies 2. High Density Cabinets 3. Fiber Termination Box 4. PLC Splitters 5. Joint Closures 6. Aerial/ FTTH Accessories 7. FTTA Solution 8. Installation Material Kitting for 4G/5G Sites Supplying high quality compatible passive connectivity solutions for catering to high-speed networks 1 2 3 4 5 6 Wire Harness Portfolio 1. Aerospace and Defense Cable Assemblies 2. Automotive Cable Assemblies Supplier of highly specialised, custom designed cables for the aerospace and automotive sectors 1 2 HFCL LIMITED | INVESTOR PRESENTATION 2026
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Products Under Development Products Under Development Product Innovation - Products under development 14 Fuelled by a sharp focus on innovation, we have created a comprehensive suite of next-gen connectivity and 5G backhauling products: IP/ MPLS Routers Wi Fi 6 Indoor Solution Wi Fi 7 Outdoor Access Point FWA CPE Drone Detection Radar Telecommunication and Networking New Variants for Wi-Fi 6 and Wi-Fi 7 Access Points New Variants of L2/L3 Switches New Variants of UBRs Global variants of Outdoor FWA CPEs Defence Communication and Electronics Drone Detection Radar HFCL LIMITED | INVESTOR PRESENTATION 2026
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Network Solutions & Projects 15 Public Telecommunication Defence Communication Established player in large- scale telecom projects including Optical Transport Network, Rural GSM Network, Fiber to the Home, In-building Solutions, Mobile Backhaul Networks. Creation of Optical Transport Network across India for leading telecom operator. Proven execution for delivering advanced Wi-Fi solutions for various institutions. Dedicated Multi-Protocol Label Switching (MPLS) Network. End-to-end solution for multiple hybrid microwave broadband radio links in remote area. Exclusive and dedicated nationwide dense wavelength-division multiplexing-based Optical transmission backbone network. GSM based Fiber Monitoring & Management System. HFCL LIMITED | INVESTOR PRESENTATION 2026
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Strong Manufacturing Presence 16 07 OPERATIONAL MANUFACTURING FACILITIES ACROSS INDIA 21 4 6 3 7 HYDERABAD, TELANGANA 2 facilities • 15.17 mn fkm/annum Optic Fiber Cables • 486k cable km/annum FTTH Cables • 28 mn fkm/annum Optic Fiber production 1 2 CHENNAI, TAMIL NADU (Through subsidiary company HTL Ltd) • 8.78 mn fkm/annum Optic Fiber Cables • 621k cable km/annum - FTTH Cables • Passive connectivity solutions • Data Centre Products 3 VERNA, GOA • 8.76 mn fkm/annum Optic Fiber Cables 4 5 HOSUR, TAMIL NADU (Through subsidiary company HTL Ltd) • 677kkm/annum Aramid Reinforced Plastic (ARP) Rods • 623k km/annum Fiber Reinforced Plastic (FRP) Rods • 2,700 MT/ annum Impregnated Glass Fiber Reinforcement (IGFR) All above are raw materials for optical fiber cable • Defence equipment 6 7 Manesar, NCR • Telecom and network equipment 5 HFCL LIMITED | INVESTOR PRESENTATION 2026
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Expanding Manufacturing Capacities 17 Further strengthening of backward integration Reduce dependence on external suppliers for manufacturing of Optic Fiber Cables. Higher Quality Assurance of finished goods. Yield better margins. 28.0 33.9 Current Capacity Proposed Capacity Planned expansion of manufacturing capacity of Optic fiber 30.5 42.3 Current Capacity Proposed Capacity Planned Optical fiber Cable capacity expansion (IN mn fkm p.a) (IN mn fkm p.a) A strategic leap in defence manufacturing 1,000 acres land sanctioned by the Andhra Pradesh government to build an integrated facility for artillery shells and Multi-Mode Hand Grenades. HFCL LIMITED | INVESTOR PRESENTATION 2026
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Optimization of Revenue and Customer base 18 We are enhancing our customer mix by prioritizing higher -margin private clients —streamlining our strategy, optimizing offerings, and aligning closely with evolving market and customer needs. Following two years of muted exports amid global demand headwinds, we are now strategically positioned to capitalize on the rebound —accelerating growth, capturing market share, and broadening our international customer base. 7.68 17.23 11.21 12.23 26.72 FY22 FY23 FY24 FY25 9M FY26 Shift from Project -led revenue to Product -led revenue - Strategically phased out low -margin turnkey projects, focusing more on scalable, high- value product offerings that are expected to drive margin expansion and ensure secular growth. 43% 56% 42% 61% 59% 57% 44% 58% 39% 41% FY22 FY23 FY24 FY25 9M FY26 Product-led Revenue Project-led Revenue 32% 17% 26% 35% 20% 68% 83% 74% 65% 80% FY22 FY23 FY24 FY25 9M FY26 Government Private Exports Revenue Share (%) Shift towards Product-led RevenueRevenue share from Pvt/ Govt Customers HFCL LIMITED | INVESTOR PRESENTATION 2026
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Research & Development : Powering towards a technology led Company 19 3 dedicated R&D centres in Bengaluru, Hyderabad and Gurugram driving innovation. Strengthened in-house R&D team Segments No. of people 5G Business 83 Wireless & Switching Solutions 77 Optical Fibre /Optical Fibre Cables 45 Communications 29 Defence Products 16 Total 250 HFCL LIMITED | INVESTOR PRESENTATION 2026
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We supply globally in more than 60 countries, to over 80 marquee customers Some market leaders who we work with In India: In UK & Europe: In Middle East & Africa: 20 In South East Asia and Asia Pacific: Map not to Scale only for illustration purpose HFCL LIMITED | INVESTOR PRESENTATION 2026
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Strong Technology Partners 21 Licensing for Open source Wi-Fi 7 products; 5G millimeter wave FWA; product development; 5G Outdoor Small Cell etc. Partnership for 5G Transport Products Partnership for 5G Small Cells Partnership for 5G Small Cells Design partner for Macro Radio, Wi-Fi Access points, UBRs, Cloud management systems, Element management systems etc. Partnership for 5G Small Cells Partnership for 5G indoor small cells Partnership for Artificial Intelligence (Al) based Analytics Partnership for 5G Transport products Partnership for Software Defined Radios Partnership for Routers HFCL LIMITED | INVESTOR PRESENTATION 2026
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What Sets HFCL Apart? 22 01 02 03 04 05 "Make in India": While Atmanirbhar Bharat opens up opportunities to contribute significantly to India’s self reliance, HFCL is greatly contributing for locally designed and manufactured telecom and Defense equipment “Enhancing Capacities and Capabilities ": We are consistently expanding our manufacturing capacities and strengthening R&D capabilities to meet rising demand, support innovation, and accelerate time-to-market. These investments are key to scaling operations, improving efficiency, and delivering next-gen solutions across our focus sectors. “Global Presence": Collaborations with international partners to penetrate key markets across Europe, Southeast Asia, and the Middle East - Penetrating new export markets with cutting-edge fiber, telecom, and defense solutions. “Focusing on high growth engines – Defence and Data Centers": We are prioritizing high-growth verticals like Defence and Data Centers to drive future scalability and profitability. In Defence, we’re focusing on indigenous products for both India and Global markets. In Data Centers, we’re enabling high-speed connectivity and infrastructure for the digital economy. Both segments offer strong demand visibility, better margins, and long-term value creation. “End to end development of products”: HFCL works on managing entire product life cycle from concept, definition, design, prototyping, quality testing, certification, trials, manufacturing, deployment, customer support and upgrade HFCL LIMITED | INVESTOR PRESENTATION 2026
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Growth Strategy 23 Continued R&D Driven Innovation Consistent addition of new products in Telecom and Defence verticals • HFCL has focused on its R&D efforts in recent years, particularly in 5G technology, defence communications, and next- generation fiber solutions. Opportunities within Private & Export Customers • Aiming to increase engagement with private entities. • Targeting export customers for greater customer diversification • The objective is to gain revenue stability and improved margins. Increased Focus on High Margin Product Revenue Customised high end products are expected to deliver higher margins • Focus on high end products to improve revenue mix and margins. • Increasing product business revenue to ease working capital resources. Entry into Data Centers Networking (DC) Industry and 5G & Fiber Expansion ~$1.1 trillion expected capex in DC networking by FY29* • Supplying OFCs, networking equipment and solutions to the high growth data centre and AI infrastructure industry. • Accelerating deployment to power India’s Digital India mission. Source: *Network world Share of Private Customers to Total Revenue stood at 80% in 9MFY26 vis-a-vis 27% in FY21. HFCL LIMITED | INVESTOR PRESENTATION 2026
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Shareholding as on December 31, 2025 (IN %) Shareholders’ Information 24 Share Information (AS ON DECEMBER 31, 2025) NSE Ticker HFCL BSE Ticker 500183 Market Cap (₹ Crores) 10,369 % free-float 71.68% Free-float market cap (₹ Crores) 7,433.14 Shares Outstanding 1,53,06,02,463 3M ADTV (Shares) 2,17,69,714 3M ADTV (₹ Crores) 152.67 Industry Telecommunications – Equipment & Solutions Promoters 28.29% DII’s / MF 9.07% FII’s & FPI’s 7.48% Others 55.16% HFCL LIMITED | INVESTOR PRESENTATION 2026
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/19 Thank You Corporate Office 8, Commercial Complex, Masjid Moth, Greater Kailash Part 2, New Delhi, Delhi - 110048 Amit Agarwal HEAD – INVESTOR RELATIONS HFCL Limited Tel: +91 -11-3520 9400 Email: ir@hfcl.com INVESTOR PRESENTATION 2025 25 HFCL LIMITED | INVESTOR PRESENTATION 2025