HFCL shares surge 37% in 5 sessions, nearly double in a month

Shares of HFCL continued their stellar rally on Thursday, jumping as much as 3.7% to hit an intraday high of Rs 146.79. The stock has now advanced for the fifth straight trading session, delivering a cumulative gain of nearly 37%, driven by fresh order wins and a sharp turnaround in earnings.

Adding to investor optimism, on May 4 the company informed exchanges that it, along with its subsidiary HTL Limited, secured purchase orders worth around Rs 84.23 crore from a leading private telecom operator for the supply of optical fibre cables (OFC).

Earlier, on April 30, HFCL reported a strong set of Q4FY26 numbers, swinging back into profitability. Consolidated net profit came in at Rs 178.50 crore, compared with a loss of Rs 81.44 crore in the year-ago period. Profit also surged 82% sequentially from Rs 97.62 crore reported in the previous quarter.

Revenue growth was equally impressive. Net sales stood at Rs 1,824.12 crore in March 2026, marking a massive 127.8% jump from Rs 800.72 crore in the corresponding quarter last year. On a sequential basis, revenue climbed nearly 51% from Rs 1,210.79 crore.

The stock has emerged as one of the strongest momentum counters in the telecom equipment space, rallying nearly 98% over the past one month alone. HFCL currently commands a market capitalisation of around Rs 22,316 crore and also touched its 52-week high during Thursday’s session.

From a valuation perspective, the stock trades at a price-to-earnings (P/E) ratio of 69.46 and a price-to-book (P/B) ratio of 4.95.
Technical indicators, however, suggest overheating after the sharp rally. The Relative Strength Index (RSI-14) stands at 91, well above the 80 mark that is generally considered strongly overbought, indicating the possibility of a near-term pullback or profit-booking. Despite this, bullish sentiment remains intact as the stock continues to trade above all eight key simple moving averages (SMAs).Institutional activity also reflects mixed sentiment. Mutual fund holdings in HFCL increased from 6.68% to 6.92% during the March 2026 quarter, while foreign portfolio investors (FPIs) slightly reduced their stake from 7.48% to 7.08%.

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