HFCL shares surged 4.1% to trade at ₹218.25 on Monday, hitting a record high of ₹220.1 on June 22, 2026, extending gains for a seventh trading session as the company announced securing a contract worth approximately ₹2,666.09 crore from Rail Vikas Nigam Limited (RVNL) for the BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle. The stock has demonstrated exceptional momentum, gaining 47.37% over the last month compared to a 10.15% gain in the BSE Telecommunication index and 2.31% rise in the SENSEX. During the session, 3.36 lakh shares were traded on the BSE compared with average daily volumes of 27.19 lakh shares in the past one month, before trading was halted for the day. The market capitalisation reached ₹32,082.96 crore as investors continue to respond positively to the company's major contract wins and strategic expansion into defence, aerospace, and data centre opportunities.
The latest contract win involves ₹2,666.09 crore from Rail Vikas Nigam Limited (RVNL) for the BharatNet Phase-III project in the Uttar Pradesh (West) telecom circle. According to the company's regulatory filing, the project includes capital expenditure of ₹1,192.82 crore and operational expenditure of ₹1,473.27 crore. The scope covers supply of telecom equipment and related accessories, installation and commissioning, creation of an Optical Fibre Cable (OFC) telecom network, and maintenance of the project infrastructure over a 10-year period including a one-year warranty. This contract is in addition to the earlier contract of ₹2,167.65 crore secured from RVNL for BharatNet Phase-III projects in the Uttar Pradesh (East) and Uttar Pradesh (West) Telecom Circles which was intimated to the stock exchanges on January 23, 2025. The contract strengthens HFCL's position in the telecom network segment and expands the company's involvement in the rollout and maintenance of telecom infrastructure under the BharatNet Phase-III programme.
HFCL has delivered remarkable returns across all timeframes, gaining 22% in the last week, 52% in the last month, and 204% year-to-date, significantly outperforming the broader market indices. The stock has multiplied investor wealth over the past four months, surging about 250% from their 52-week low of ₹59.83 touched on January 23, 2026, with the stock hitting a record high of ₹220.1 on June 22, 2026. On a year-to-date basis, HFCL shares are up 204% compared with a 3.5% decline in the Nifty 500 index. Over the last one year, the stock has delivered a return of 164% against a 1.3% gain in the benchmark. The counter has advanced 10.84% in the last two trading sessions following the latest contract announcements, demonstrating sustained investor interest in the company's growth trajectory.
HFCL is rapidly transforming from a predominantly domestic, optical fibre cable-focused company into a globally diversified technology player. Export revenue has increased from around 11% of sales in FY24 to nearly 41% in FY26, while 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 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 is India's largest optical fibre cable manufacturer with manufacturing facilities across the country and was the first Indian company to develop and commercialise 5G Fixed Wireless Access customer-premises equipment.
Looking ahead, HFCL anticipates robust growth in its performance with increased demand from United States, Europe and Asia, aided by growing customer acceptance of HFCL's products and strong execution capabilities. The company continues to strengthen its position in the telecommunication sector and remains committed to delivering high-quality execution of large-scale digital connectivity projects. HFCL has emerged as one of India's purest listed plays on the AI connectivity theme, with the market betting that the AI and data-centre infrastructure story is still in its early stages. The company's transformation into a global technology player with increasing export revenues and strategic expansion into defence, aerospace, and data centre opportunities positions it well for sustained growth in the evolving technology landscape.
Despite HFCL's strong performance, broader market sentiment remained weak with the SENSEX down 714 points to 76,695 and NIFTY falling 0.80% to 23,973 on Friday. However, the BSE Telecommunication index outperformed significantly, rising 0.94% to 3778.4 on Monday, with the index up 24.32% over the last year compared to the 6.37% fall in benchmark SENSEX. Among other telecom sector constituents, Railtel Corporation of India Ltd increased 2.36% and Pace Digitek Ltd added 2.03% on the day. The BSE Telecommunication index has gone up 10.15% over the last month compared to broader market weakness, indicating strong sector-wide performance driven by large order wins and corporate expansion plans across individual stocks in the telecom infrastructure and metals sectors.
