HFCL Ltd shares surged 3.58% to trade at ₹197.00 following the announcement of a significant contract award. According to Dalal Street Investment Journal, the stock emerged as a top gainer on the BSE, with the rally driven by market forces rather than specific company announcements. The positive market response reflects investor confidence in HFCL's expanding telecom infrastructure business and strong execution capabilities.
Telecom gear maker HFCL Ltd has secured a ₹2,666.09 crore contract from Rail Vikas Nigam Limited (RVNL) for the BharatNet Phase-III project in Uttar Pradesh (West) Telecom Circle. As per the latest regulatory filing, the contract involves the supply of telecom equipment and related accessories with installation and commissioning, creation of an optical fiber cable telecom network, and maintenance of the project for a period of 10 years, including a one-year warranty period. This new contract is in addition to a previous contract of ₹2,167.65 crores awarded to HFCL by RVNL for BharatNet Phase-III projects in the Uttar Pradesh (East) and Uttar Pradesh (West) Telecom Circles, which was announced to the stock exchanges on January 23, 2025.
The total contract value of ₹2,666.09 crore comprises a capital expenditure component of ₹1,192.82 crore and an operating expenditure component of ₹1,473.27 crore. As reported by CNBC TV18, the execution timeline for the project is two years for implementation, followed by 10 years of operations and maintenance. The company confirmed that this order is in addition to an earlier ₹2,167.65 crore contract awarded by RVNL for BharatNet Phase-III projects in Uttar Pradesh (East) and Uttar Pradesh (West) telecom circles, which was intimated on January 23, 2025. The contract has been awarded by a domestic entity and does not involve any related party transactions, with the company maintaining transparency in its business dealings.
The positive sentiment around HFCL was reflected in broader market movements, with Sensex opening slightly lower with a loss of 23.96 points or 0.03% in pre-opening trade. According to Dalal Street Investment Journal, sectoral performance showed metals jumping by 0.18%, power zooming by 0.17%, and auto surging by 0.25% in the pre-opening session. Other notable gainers included SJS Enterprises Ltd, which surged 3.75% to trade at ₹2,279.95, and Gokaldas Exports Ltd, which advanced 2.85% to trade at ₹749.85, both companies having not made significant announcements recently.
