HFCL shares have surged nearly 200% in six months, driven by the AI boom and India's expanding data centre industry. According to reports from The Economic Times, this remarkable rally positions the company as one of India's purest listed plays on the AI connectivity theme. The stock has emerged as a standout performer in the current market environment, reflecting strong investor confidence in the company's transformation and growth prospects.
HFCL's FY26 consolidated revenue nearly doubled year-on-year to a record ₹4,949 crore, while EBITDA stood at around ₹827 crore and profit after tax came in at approximately ₹329 crore. As reported by The Economic Times, the company has demonstrated significant business transformation with product revenue growing from 27% of the mix in FY21 to 59% in FY26. Exports now account for 41% of revenue, representing a substantial shift from the company's traditional domestic focus.
The company has secured a major international contract worth around ₹10,159 crore, one of the largest orders in the company's history for optical fibre cable supply. According to The Economic Times, HFCL's order book has reached an all-time high of around ₹21,200 crore, providing strong business visibility. Management has guided for revenue growth of 20-25% in FY27 along with a 3-4 percentage point expansion in EBITDA margins, with a long-term aspiration of achieving ₹10,000 crore in revenue.
HFCL is scaling up its defence and aerospace vertical, supported by a 1,000-acre facility in Andhra Pradesh and a defence manufacturing unit in Hosur. As reported by The Economic Times, the company's foray into defence offers medium-term revenue visibility with electronic fuses nearing commercialisation and a diversified product portfolio targeting ₹400-500 crore in FY27, scaling to over ₹1,000 crore by FY28. Subsidiary HTL is expanding its data-centre interconnect solutions business to capitalise on AI and data-centre infrastructure investments.
HFCL currently trades at a trailing P/E multiple of above 70x, which appears relatively more comfortable than Sterlite Tech but remains significantly above historical averages. According to The Economic Times, analysts believe the stock now firmly sits in the high-risk, high-reward category. The sustainability of the rally will ultimately depend on future order inflows, execution capabilities, and the company's ability to convert the AI and data-centre boom into durable earnings growth. India's data centre IT load has expanded from around 350 MW in 2019 to nearly 1.5-1.6 GW in 2025, translating into a CAGR of about 29%.
