HFCL Stock Jumps 37% In Five Days After Strong Q4 Show And Fresh Orders

Shares of HFCL have seen a sharp rise lately. The stock has climbed 37% in the last five trading sessions and has nearly doubled over the past month. This has made it one of the strongest performers in the market during this period.

The sharp rally has drawn investor attention amid heavy trading volumes and growing interest in the company’s telecom and defence businesses. So, what is driving the surge in HFCL shares?

How Did HFCL Perform In Q4 And Why Is The Stock Rising?

HFCL shares opened at ₹143.95 on 07 May 2026 and continued their upward move during the session. At around 2:15 PM, the stock was trading at ₹146.15, up 3.32% for the day.

Investor interest in HFCL picked up after the company posted a sharp turnaround in its March quarter earnings.

Earlier on 30 April 2026, HFCL reported a consolidated net profit of ₹178.50 crore for Q4FY26, compared with a loss of ₹81.44 crore in the same quarter last year. The company had posted a profit of ₹97.62 crore in the previous quarter, taking sequential profit growth to 82%.

Revenue growth was equally strong.

Net sales stood at ₹1,824.12 crore during the quarter, marking a 127.8% jump from ₹800.72 crore a year ago. Compared with the December quarter, revenue climbed nearly 51% from ₹1,210.79 crore.

The company also announced fresh order wins during the month. On 4 May 2026, HFCL and its subsidiary HTL Limited received purchase orders worth about ₹84.23 crore from a private telecom operator for the supply of optical fibre cables.

Investors seem encouraged by the company’s earnings recovery and recent order wins. Growing focus on telecom infrastructure and fibre expansion is also supporting sentiment.

What Does HFCL Do?

HFCL is a Delhi-based telecom infrastructure company founded in 1987. It supplies optical fibre cables, telecom gear and connectivity solutions for communication networks.

HFCL also has a presence in defence communication systems, alongside telecom infrastructure projects linked to fibre expansion and 5G rollout. With customers spread across more than 30 countries, the company has been expanding its manufacturing and research capabilities to tap the rising demand for network and connectivity solutions.

Also Read - Cautious Markets Push Companies To Rethink IPO Sizes Ahead Of Launch

What Should Investors Know After HFCL’s Sharp Rally?

The recent rally in HFCL has significantly pushed up its valuations. The stock is now trading at a P/E multiple of 69.46 and a price-to-book ratio of 4.95.

Momentum indicators also point to an overheated zone in the near term. HFCL’s RSI-14 has climbed to 91, a level that usually signals extremely strong buying activity and raises the possibility of short-term profit booking. Still, the broader trend remains positive, with the stock continuing to trade above all its key simple moving averages.

Mutual fund holdings in the company increased from 6.68% to 6.92%, while foreign portfolio investors trimmed their stake slightly from 7.48% to 7.08%.

For investors, the key question now is whether the company can continue matching the market’s rising expectations. Future earnings growth, execution of telecom and fibre-related projects, fresh order inflows, and demand linked to 5G and defence infrastructure will remain closely tracked. After such a sharp move in a short span, consistency in business performance could become more important than momentum alone.

Sources:

The Economic Times

HFCL