AI and data centre play HFCL rose 4% to Rs 223 on the BSE on Friday after announcing a Rs 496 crore order from a leading international customer for the supply of optical fibre cable-based data centre connectivity solutions. With today's gain, the stock has rallied 220% so far in 2026.
The company didn’t name the customer but disclosed that it is an overseas order which HFCL expects to fulfil by December this year. “This significant order reaffirms the trust our global customers place in the company's manufacturing capabilities,” HFCL said in a regulatory filing on Thursday.
Last month it secured a contract worth approximately Rs 2,666.09 crore from Rail Vikas Nigam Limited (RVNL) for the BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle.
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HFCL said the contract covers the supply of telecom equipment and related accessories, installation and commissioning, creation of an Optical Fiber Cable (OFC) telecom network, and maintenance of the project over a period of 10 years, including a one-year warranty period.
Should you Buy HFCL shares?
Monarch Networth Capital believes HFCL is witnessing a high-quality earnings turnaround, supported by stronger capacity utilisation and a richer product mix.
Business visibility also remains strong. HFCL's order book has reached an all-time high of around Rs 21,200 crore. Management has guided for revenue growth of 20-25% in FY27 along with a 3-4 percentage point expansion in EBITDA margins. It has also articulated a long-term aspiration of achieving Rs 10,000 crore in revenue.
Monarch further highlighted the optionality emerging from HFCL's expansion into defence, aerospace and data-centre-related opportunities. The company is scaling up its defence and aerospace vertical, supported by a 1,000-acre facility allotted in Andhra Pradesh, a defence manufacturing unit in Hosur and a proposed aerospace acquisition carrying an export order book of around Rs 1,930 crore.
Monarch also noted that HFCL is India's largest optical fibre cable manufacturer, with manufacturing facilities across the country. It added that HFCL was the first Indian company to develop and commercialise 5G Fixed Wireless Access customer-premises equipment.
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The brokerage pointed out that HFCL has rapidly transformed from a predominantly domestic, optical fibre cable-focused company into a globally diversified technology player. Export revenue has increased from around 11% of sales in FY24 to nearly 41% in FY26, while management is targeting exports to account for more than 50% of revenue by FY27, supported by a confirmed export order book of over Rs 12,000 crore.
HFCL has emerged as one of India's purest listed plays on the AI connectivity theme.
