HFCL shares dropped 5% to hit the lower circuit on Thursday, extending a 7% fall in two days as investors engaged in profit booking after the multibagger stock delivered a whopping 240% return so far in 2026. According to The Economic Times, the stock dropped to ₹233.16 on NSE on Thursday, with the recent decline following a remarkable surge that had seen the stock reach an intraday high of ₹255.15. Despite the recent correction, HFCL shares have gained around 7% in a week and 10% in a month, while over the past year, the optical fibre manufacturer's shares have surged more than 230%. The sustained buying interest throughout 2026 reflects strong investor confidence in the telecommunications equipment manufacturer's robust financial performance and diversified growth strategy.
HFCL's FY26 annual report revealed exceptional financial performance with revenue from operations increasing 21.77% year-on-year to ₹4,949.27 crore. As reported by The Economic Times, EBITDA surged 63.15% to ₹826.75 crore, while profit after tax witnessed an even sharper 90.14% jump to ₹329.44 crore. Earnings per share (EPS) rose 73.17% to ₹2.13, reflecting the company's improved profitability during the year. The company also achieved significant operational efficiency improvements, with Return on Capital Employed (RoCE) standing at 11.04%, registering a 43.64% improvement, while maintaining a controlled leverage position with a debt-equity ratio of 0.35. HFCL now has a market capitalisation of around ₹38,695 crore, reflecting its enhanced market valuation.
HFCL's FY26 order book stood at ₹21,206 crore as of June 30, 2026, marking a significant 113% year-on-year increase and signalling robust business momentum across its key segments. According to The Economic Times, this substantial order book provides strong revenue visibility for future periods. The company also secured a significant export order worth $244 million (approximately ₹2,329 crore) on September 1, involving the supply of high-quality optical fibre cables to a global multinational corporation. This international business pipeline further strengthens the company's order visibility and growth prospects. HFCL said that its strong and diversified order book of ₹21,206 crore secures multi-year revenue predictability across optical fibre cable (OFC), telecom, defence and connectivity solutions.
Technical indicators currently point towards a sideways bias, with the stock consolidating in the ₹257–218 range, according to SBI Securities' Sudeep Shah. As reported by The Economic Times, the 34-day EMA has continued to act as a dynamic support, while the stock remains above key moving averages, keeping the broader trend positive. Shah noted that such consolidation following a strong up move is a normal technical pattern and can provide a base for the next directional move. A decisive breakout on either side of the ₹257–218 range will provide further directional cues for the stock's future trajectory. The technical analysis suggests that the current correction may be a healthy consolidation phase after the stock's exceptional rally performance.
