HFCL stock hits upper circuit; order book expansion, defence revenue target and more
HFCL shares rose 5% to a high of Rs 242.95 against the previous close of Rs 231.40. Market cap of the firm rose to Rs 37,185 crore.
- Sep 7, 2026,
- Updated Sep 7, 2026 3:37 PM IST
Shares of HFCL Ltd were stuck in the upper circuit of 5% on Monday after the firm in its annual report said that its FY26 order book stood at Rs 21,206 crore, a huge 113% year-on-year rise and signaling robust business momentum across its key segments. The firm also said it is aiming at defence manufacturing expansion. HFCL is setting up a 1,000-acre defence manufacturing facility in Andhra Pradesh from which the company is targeting a revenue of Rs 500 crore for FY27 against Rs 77 crore achieved in FY26. The order book comprises high-margin O&M contract order worth Rs 3,508 crore.
HFCL shares rose 5% to a high of Rs 242.95 against the previous close of Rs 231.40. Market cap of the firm rose to Rs 37,185 crore.
HFCL stock has gained 248% in six months and 252.66% in 2026. The stock has a RSI of 53.5, indicating that the stock is neither overbought nor oversold on charts. The company said its long-term growth outlook remains positive.
Rising Demand for High-Speed Connectivity
HFCL's long-term growth prospects remain positive, supported by the global push towards high-speed connectivity and network modernisation.
Rapid expansion of data centres, hyperscale cloud infrastructure and AI-led digital ecosystems is driving demand for advanced optical connectivity solutions.
This trend is expected to create significant opportunities for HFCL's Optical Fiber and Optical Fiber Cable (OFC) businesses.
India Broadband Expansion to Drive Demand
Continued investments in India's digital connectivity infrastructure are expected to support demand for fibre-based solutions.
Government-led initiatives such as BharatNet, along with other broadband expansion programmes, are likely to accelerate:
* Fibreisation of telecom networks * Last-mile connectivity * Broadband infrastructure deployment * Growing digital adoption across India could provide an additional long-term growth opportunity for the company.
Focus on Higher-Value Products
* HFCL is focusing on sustained and profitable growth through innovation-led product development and capacity expansion. * The company is gradually increasing its focus on higher-value-added and product-led businesses. * Its portfolio of advanced optical fibre, optical fibre cable and interconnect solutions is being strengthened to address the evolving requirements of:
* Hyperscalers * Telecom operators * Enterprise customers
Capacity Expansion Underway
* HFCL is undertaking a significant expansion of its Optical Fiber and Optical Fiber Cable manufacturing capacity. * The expansion is aimed at supporting future demand while improving the company's competitive position. * Increased manufacturing capabilities are expected to provide greater flexibility as demand from telecom, data centre and enterprise markets expands.
Backward Integration to Strengthen Margins
* The planned move into preform manufacturing represents an important step towards backward integration. * This could help HFCL:
* Strengthen supply-chain resilience * Reduce dependence on external suppliers * Improve operating efficiencies * Enhance cost competitiveness * Support margin expansion over the long term
Data Centres and AI Emerging as Key Growth Drivers
* The rapid build-out of AI infrastructure, hyperscale data centres and cloud networks is increasing the requirement for high-capacity optical connectivity. * HFCL's optical fibre and interconnect solutions position the company to participate in this structural growth opportunity. * Rising data consumption and network capacity requirements are expected to support demand over the longer term.
Outlook
* With an expanding manufacturing base, strong focus on innovation and increasing exposure to high-growth segments, HFCL is positioned to benefit from the long-term expansion of digital connectivity infrastructure.
* Improving operational efficiencies, backward integration and a greater contribution from product-led businesses could strengthen the company's profitability profile. * The combination of telecom, data centre, enterprise and defence opportunities provides HFCL with multiple avenues for sustainable growth in the coming years.
About HFCL
HFCL Limited is primarily engaged in manufacturing of telecommunication equipment, optical fiber cables and intelligent power systems. The company is a manufacturer of optical fiber cables, optical transport, power electronics and broadband equipment for the telecommunication industry.
Shares of HFCL Ltd were stuck in the upper circuit of 5% on Monday after the firm in its annual report said that its FY26 order book stood at Rs 21,206 crore, a huge 113% year-on-year rise and signaling robust business momentum across its key segments. The firm also said it is aiming at defence manufacturing expansion. HFCL is setting up a 1,000-acre defence manufacturing facility in Andhra Pradesh from which the company is targeting a revenue of Rs 500 crore for FY27 against Rs 77 crore achieved in FY26. The order book comprises high-margin O&M contract order worth Rs 3,508 crore.
HFCL shares rose 5% to a high of Rs 242.95 against the previous close of Rs 231.40. Market cap of the firm rose to Rs 37,185 crore.
HFCL stock has gained 248% in six months and 252.66% in 2026. The stock has a RSI of 53.5, indicating that the stock is neither overbought nor oversold on charts. The company said its long-term growth outlook remains positive.
Rising Demand for High-Speed Connectivity
HFCL's long-term growth prospects remain positive, supported by the global push towards high-speed connectivity and network modernisation.
Rapid expansion of data centres, hyperscale cloud infrastructure and AI-led digital ecosystems is driving demand for advanced optical connectivity solutions.
This trend is expected to create significant opportunities for HFCL's Optical Fiber and Optical Fiber Cable (OFC) businesses.
India Broadband Expansion to Drive Demand
Continued investments in India's digital connectivity infrastructure are expected to support demand for fibre-based solutions.
Government-led initiatives such as BharatNet, along with other broadband expansion programmes, are likely to accelerate:
* Fibreisation of telecom networks * Last-mile connectivity * Broadband infrastructure deployment * Growing digital adoption across India could provide an additional long-term growth opportunity for the company.
Focus on Higher-Value Products
* HFCL is focusing on sustained and profitable growth through innovation-led product development and capacity expansion. * The company is gradually increasing its focus on higher-value-added and product-led businesses. * Its portfolio of advanced optical fibre, optical fibre cable and interconnect solutions is being strengthened to address the evolving requirements of:
* Hyperscalers * Telecom operators * Enterprise customers
Capacity Expansion Underway
* HFCL is undertaking a significant expansion of its Optical Fiber and Optical Fiber Cable manufacturing capacity. * The expansion is aimed at supporting future demand while improving the company's competitive position. * Increased manufacturing capabilities are expected to provide greater flexibility as demand from telecom, data centre and enterprise markets expands.
Backward Integration to Strengthen Margins
* The planned move into preform manufacturing represents an important step towards backward integration. * This could help HFCL:
* Strengthen supply-chain resilience * Reduce dependence on external suppliers * Improve operating efficiencies * Enhance cost competitiveness * Support margin expansion over the long term
Data Centres and AI Emerging as Key Growth Drivers
* The rapid build-out of AI infrastructure, hyperscale data centres and cloud networks is increasing the requirement for high-capacity optical connectivity. * HFCL's optical fibre and interconnect solutions position the company to participate in this structural growth opportunity. * Rising data consumption and network capacity requirements are expected to support demand over the longer term.
Outlook
* With an expanding manufacturing base, strong focus on innovation and increasing exposure to high-growth segments, HFCL is positioned to benefit from the long-term expansion of digital connectivity infrastructure.
* Improving operational efficiencies, backward integration and a greater contribution from product-led businesses could strengthen the company's profitability profile. * The combination of telecom, data centre, enterprise and defence opportunities provides HFCL with multiple avenues for sustainable growth in the coming years.
About HFCL
HFCL Limited is primarily engaged in manufacturing of telecommunication equipment, optical fiber cables and intelligent power systems. The company is a manufacturer of optical fiber cables, optical transport, power electronics and broadband equipment for the telecommunication industry.