HFCL shares in focus after Rs 834 crore optical fibre cable order wins

Shares of HFCL Ltd are in focus on Thursday after the company received export orders worth Rs 834.36 crore, equivalent to $88.94 million, for the supply of optical fiber cables, through its overseas wholly owned subsidiary from a renowned international customer.

"These orders reaffirm the confidence reposed by our customers in the company’s manufacturing capabilities, technological excellence and product quality," HFCL said in an stock exchange filing. The orders will be executed by June 2027, HFCL added.

HFCL shares are up 208 per cent in 2026 so far, even as the scrip is down 20 per cent in the past one month.

HFCL's order book stood at Rs 28,900 crore at the end of September quarter, providing multi-year revenue visibility. In its recent earnings call, the management said the company has a strong pipeline of orders at advanced stages likely "to be converted into firm contracts in due course."

"We do not see this quarter as a peak, but as the sustained phase of strong growth. Our confidence rests on a robust order book, a strong pipeline and long term customer programmes. Our customers include some of the World’s largest, financially strong technology companies, with demand anchored in long-term agreements and firm commitments. As the pipeline converts into orders, we expect our order book to strengthen further," Promoter and MD Mahendra Nahata said recently.

"These relationships, together with our capacity expansion and growing share of advanced optical connectivity products, give us strong visibility and confidence in sustaining—and building on—the current revenue and profitability trajectory," he said.

The company earlier guided for FY27 revenue growth aspiration of approximately 20 per cent over FY26. After the first quarter, HFCL revised it to 40 per cent. Now the company expects revenue growth of at least 80 per cent in this financial year.
It had had also envisaged achieving Rs 10,000 crore revenue by FY29. Given the momentum, the management in October said it would not be surprised if it reaches that milestone much before that.

Arihant Capital Markets estimated HFCL's revenue, Ebitda and PAT CAGRs of 51.2 per cent, 82.3 per cent and 113 per cent, respectively, over FY26-29E, with RoE projected to rise from 7.3 per cent to 32 per cent.

The HFCL management said demand continued to accelerate across AI infrastructure, hyperscale data centres and telecom networks. Opportunities with hyperscalers and telecom operators across international markets are steadily converting into firm contracts, strengthening order pipeline and providing revenue visibility for long term.

"Our sustained investments in technology, customer relationships and manufacturing capacity position HFCL strongly to capture this long-term growth opportunity," it said.