HFCL Ltd. shares witnessed a significant rally, gaining 4% to ₹223 on Friday after the company announced securing an export order worth ₹495.8 crore. According to the latest NSE filing, the order has been awarded to the company's overseas wholly owned subsidiary for the supply of optical fibre cable-based data centre connectivity solutions by a leading international customer. As per the company disclosure, the supply order will be as per the needs and specifications of the foreign customer, demonstrating HFCL's ability to customize solutions for global requirements. The contract has been awarded under general contract conditions and does not involve any related-party transaction, with neither the company's promoters nor promoter group companies having any interest in the entity awarding the contract.
The latest contract represents a substantial expansion of HFCL's service capabilities, covering telecom equipment and related accessories, installation and commissioning, creation of an Optical Fibre Cable (OFC) telecom network, and maintenance of the project over a period of 10 years, including a one-year warranty period. As per the company's regulatory filing, HFCL expects to fulfill this comprehensive order by December 2026, providing revenue visibility for the next 18 months. The specialized data centre products generally offer 15-20% higher margins compared to generic turnkey telecom projects, with the company targeting 70% of total OFC production from export revenues. This follows the launch of the company's 'OptiQ AI' brand to target the $73 billion global AI optical connectivity market, with the export win acting as immediate validation of technical capability to serve high-uptime requirements of global AI hyperscalers.
The latest contract win has significantly boosted HFCL's order book to a record high of ₹21,206 crore, with the company's current order book standing at above ₹21,000 crore. Earlier in June 2026, the company secured a landmark ₹2,666 crore order for BharatNet Phase-III in Uttar Pradesh, demonstrating robust order book growth. The company has also announced a ₹950 crore investment plan to ramp up fiber production and enter the AI networking space, following the launch of the 'OptiQ AI' brand. Additionally, CARE Ratings upgraded HFCL's long-term rating to 'A; Positive' on July 1, citing improved operational performance, strengthening the company's balance sheet. 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 ₹1,930 crore.
HFCL has undergone a remarkable transformation in its revenue mix, with export revenue increasing from around 11% of sales in FY24 to nearly 41% in FY26. According to Monarch, management is targeting exports to account for more than 50% of revenue by FY27, supported by a confirmed export order book of over ₹12,000 crore. The company has emerged as one of India's purest listed plays on the AI connectivity theme, with Monarch highlighting the optionality emerging from HFCL's expansion into defence, aerospace and data-centre-related opportunities. As India's largest optical fibre cable manufacturer with manufacturing facilities across the country, HFCL was the first Indian company to develop and commercialise 5G Fixed Wireless Access customer-premises equipment.
The company has announced significant capacity expansion plans, with HFCL increasing its Optical Fibre Cable (OFC) capacity to 45 million fibre route kilometres from 39 million route kilometres per year, and increasing optical fibre capacity to 40 million fibre-route kilometres from 30 million route kilometres per year. The company's Optical Fibre Cable business also recorded the highest-ever order book of ₹13,483 crore in the last fiscal. On a consolidated basis, HFCL reported impressive financial results for Q4 March 2026, with net profit of ₹178.50 crore compared to a net loss of ₹81.43 crore in Q4 March 2025. Net sales surged 127.81% YoY to ₹1,824.12 crore in Q4 March 2026, demonstrating the company's strong operational turnaround. Monarch analysts remain optimistic about the company's long-term growth prospects, citing the company's transformation from a predominantly domestic, optical fibre cable-focused company into a globally diversified technology player.
