Why HFCL Share Price Is Rising Today

HFCL has staged a sharp turnaround after hitting a 52-week low of Rs 59.82 on January 27, 2026, with the stock rising about 170% from that level to a 52-week high of Rs 162.9 on May 25, 2026. The rally has been driven by a combination of stronger financial performance, a much healthier order book, growing exposure to AI-related demand, and an expanding defense business.

The biggest catalyst was HFCL’s quarter ended March 2026. Revenue from operations jumped 127.8% year on year to Rs 18.24 billion from Rs 8 billion in the same quarter last year. The company also moved from a net loss of Rs 0.83 billion to a net profit of Rs 1.84 billion. EBITDA margins improved to 18.47%, reversing the EBITDA loss seen in the year-ago quarter. For the full financial year ending March 2026, revenue rose 21.8% to Rs 49.49 billion, while annual profit increased more than 90% to Rs 3.29 billion. The board also announced a final dividend of Rs 0.20 per share. Management said the improvement was supported by a better product mix, stronger exports, and higher realizations in high fiber-count optical fiber cables.

HFCL’s order book has also strengthened significantly. The company and its subsidiary HTL Limited secured a global optical fiber cable supply contract worth US$ 1.1 billion, or about Rs 92 billion, which is the largest order in the company’s history. The contract is tied to growing demand from hyperscale data centers and AI infrastructure and is expected to begin execution by the end of the June 2026 quarter. In addition, HTL won a domestic order worth Rs 13.66 billion from a top-tier Indian customer. In May 2026, HFCL also announced two export orders totaling Rs 1.84 billion for delivery by August 2026, adding to a US$ 72.96 million export deal won late last year.

The company is benefiting from a broader global shift in telecom and digital infrastructure spending. AI data centers require substantially more optical fiber than conventional facilities, creating strong demand for high fiber-count cables. HFCL is expanding capacity to 33.9 million fiber kilometers by December 2026 and is already operating at full utilization. Its data center interconnect business, housed within HTL, is expected to contribute Rs 4 billion in FY27 and Rs 8 billion the following year.

A less visible but increasingly important growth driver is defense. HFCL and its subsidiaries are building capabilities in wire harnesses, aerospace, radar, thermal weapon systems, and electronic fuzes. The business it is acquiring has an export-oriented order book of about Rs 9.3 billion. Management is targeting defense revenue of Rs 4 billion to Rs 5 billion in FY27, rising to Rs 10 billion in the following year. The foundation stone for a 1,000-acre defense manufacturing facility in Andhra Pradesh was laid on May 15, 2026.

Looking ahead, HFCL has guided for 20% to 25% revenue growth in FY27 and a 3% to 4% improvement in EBITDA margins. The company’s long-term goal is to cross Rs 100 billion in annual revenue, supported by capacity expansion, domestic manufacturing, exports, and defense diversification.