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HFCL Limited
(HFCL)
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Rating:64Neutral
Price Target:
₹257.00
▲(9.01% Upside)
Action:Reiterated
Date:10/19/26
The score is driven primarily by mixed financial quality: strong revenue rebound and manageable leverage are outweighed by volatile and recently negative operating/free cash flow. Technicals are supportive with the stock in an uptrend and positive momentum. Offsetting these positives, valuation is stretched (high P/E with very low yield). The latest earnings call adds support via upgraded growth guidance, a large order book, and margin/debt-improvement expectations, though near-term execution and working-capital/billing risks remain.
Positive Factors
Order-book visibility
The INR 28,900 crore order book provides substantial multi-year revenue visibility and supports production planning. Its mix of shorter and multi-year contracts can sustain demand across cycles, while continued order-book growth indicates meaningful customer commitment to HFCL’s network solutions.
Negative Factors
Volatile cash generation
Materially negative operating and free cash flow weakens the conversion of reported earnings into liquidity. If working-capital and project-timing swings persist, HFCL may need greater balance-sheet flexibility to fund investment and operations, limiting financial resilience during weaker periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Order-book visibility
The INR 28,900 crore order book provides substantial multi-year revenue visibility and supports production planning. Its mix of shorter and multi-year contracts can sustain demand across cycles, while continued order-book growth indicates meaningful customer commitment to HFCL’s network solutions.
Read all positive factors
HFCL Limited (HFCL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹371.71B
Dividend Yield0.08%
Average Volume (3M)466.21K
Price to Earnings (P/E)42.3
Beta (1Y)1.57
Revenue Growth101.01%
EPS Growth2852.77%
CountryIN
Employees1,820
SectorGeneral
Sector StrengthN/A
IndustryCommunication Equipment
Share Statistics
EPS (TTM)3.84
Shares Outstanding1,530,602,400
10 Day Avg. Volume477,814
30 Day Avg. Volume466,211
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)2.03
Price to Sales (P/S)2.01
P/FCF Ratio-12.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.6
Revenue Forecast (FY)₹80.76B
HFCL Limited Business Overview & Revenue Model
Company Description
Based in New Delhi, India, and established in 1987, HFCL Limited (formerly Himachal Futuristic Communications Limited until October 2019) is an international manufacturer and seller of telecommunications products. The company operates through two ...
How the Company Makes Money
HFCL primarily makes money by selling telecom network products and delivering end-to-end network projects. A major revenue stream comes from manufacturing and supplying optical fiber and fiber-optic cables and related passive connectivity products...
HFCL Limited Earnings Call Summary
Earnings Call Date:Oct 19, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 09, 2027
Earnings Call Sentiment Positive
The call was strongly optimistic, supported by record quarterly and first-half earnings, substantial revenue and margin expansion, an INR 28,900 crore order book, raised FY2027 growth expectations of at least 80%, expanding capacity, and significant defense, aerospace, connectivity, and data-center opportunities. The main challenges discussed were the current EPC loss, delayed billing, limited Indian data-center scale, external preform dependence, machinery delays, and supply or pricing uncertainty for germanium and preform. Positive developments and management commentary significantly outweighed the disclosed challenges.Positive Updates
Record Q2 Profitability
Management described Q2 FY2027 as HFCL's best-ever quarterly performance. Consolidated PBT reached INR 538.60 crores versus INR 106.34 crores in Q2 FY2026, up 406.49% year-on-year and 62.46% quarter-on-quarter. PAT rose to INR 394.22 crores from INR 71.92 crores, up 448.14% year-on-year and 60.49% quarter-on-quarter.
Negative Updates
EPC Segment Reported a Loss
The EPC segment reported a loss of approximately INR 121 crores in the current quarter. Management attributed this to expenses incurred before AMC revenue began and to BharatNet milestone, billing, and verification delays. It expects the loss over the next two quarters combined to be no more than INR 75 crores to INR 100 crores.
Read all updates
Q2-2027 Updates
Positive
Negative
Record Q2 Profitability
Management described Q2 FY2027 as HFCL's best-ever quarterly performance. Consolidated PBT reached INR 538.60 crores versus INR 106.34 crores in Q2 FY2026, up 406.49% year-on-year and 62.46% quarter-on-quarter. PAT rose to INR 394.22 crores from INR 71.92 crores, up 448.14% year-on-year and 60.49% quarter-on-quarter.
Read all positive updates
Company Guidance
Management expects revenue growth of at least 80% in this financial year, after revising its aspiration from approximately 20% to 40% to 80%, and said INR 10,000 crore revenue by FY 2029 could be reached much before that; planned investment is approximately INR 1,800 crore across optical fiber, optical fiber cable, and preform manufacturing, with fiber capacity increasing from 28 million to 34 million and 34 million to 43 million, cable capacity from 34 million to 63 million fiber kilometers, and own preform available late 2028, while connectivity solution revenue is expected at about more than INR 800 crores this year and INR 2,000 crores next year; defense revenue is expected to be approximately INR 500 crore in FY 2027, INR 500 crores-INR 600 crores this year, at least INR 2,000 crores next year, and around INR 5,000 crores in three years timeframe; EPC losses for the next two quarters put together should not be more than INR 75 crores-INR 100 crores, with profit expected in the first quarter of next year; margins are expected to get somewhat better, debt reduction will start in the current year and substantially go down, and revenue growth is expected in Q3 and next year.HFCL Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.93B | 49.49B | 40.65B | 44.65B | 47.43B | 47.27B |
| Gross Profit | 17.99B | 11.45B | 11.07B | 12.39B | 12.57B | 12.23B |
| EBITDA | 12.28B | 8.27B | 4.46B | 5.82B | 6.19B | 6.64B |
| Net Income | 5.73B | 3.12B | 1.77B | 3.30B | 3.01B | 3.13B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 88.68B | 75.46B | 64.87B | 54.73B | 51.71B |
| Cash, Cash Equivalents and Short-Term Investments | 5.10B | 5.10B | 4.93B | 3.42B | 3.35B | 2.50B |
| Total Debt | 0.00 | 18.96B | 15.22B | 9.91B | 9.36B | 7.83B |
| Total Liabilities | -49.49B | 39.19B | 34.27B | 24.87B | 23.28B | 23.53B |
| Stockholders Equity | 49.49B | 48.91B | 40.79B | 39.56B | 31.08B | 27.98B |
Cash Flow | ||||||
| Free Cash Flow | -1.77B | -8.21B | 1.66B | -4.55B | -1.05B | 228.10M |
| Operating Cash Flow | -436.00M | -5.91B | 3.96B | -448.80M | 2.36B | 2.06B |
| Investing Cash Flow | -790.90M | -3.29B | -5.18B | -4.49B | -446.30M | -4.58B |
| Financing Cash Flow | 816.00M | 8.87B | 1.70B | 4.54B | -1.45B | 2.48B |
HFCL Limited Technical Analysis
Positive
235.75
Price Trends
237.02
Positive
220.36
Positive
156.08
Positive
Market Momentum
5.38
Positive
52.10
Neutral
24.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HFCL, the sentiment is Positive. The current price of 235.75 is below the 20-day moving average (MA) of 249.63, below the 50-day MA of 237.02, and above the 200-day MA of 156.08, indicating a neutral trend. The MACD of 5.38 indicates Positive momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 24.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HFCL.
HFCL Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹149.00B | 78.78 | ― | 0.15% | 4.02% | 16.28% | |
64 Neutral | ₹371.71B | 42.30 | ― | 0.08% | 101.01% | 2852.77% | |
63 Neutral | ₹14.77B | 13.74 | ― | 4.79% | 20.48% | 2.16% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ₹451.68B | 57.78 | ― | 0.65% | 63.47% | ― | |
47 Neutral | ₹73.40B | -9.04 | ― | 0.61% | -70.27% | -100.11% | |
41 Neutral | ₹212.60B | 80.63 | ― | ― | -41.28% | ― |
* General Sector Average
IN:HFCL
HFCL Limited
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214.91%
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HFCL Limited Corporate Events
HFCL Publishes Voting Results and Scrutinizer’s Report for 39th AGM
Oct 1, 2026
HFCL Limited has reported the voting results and consolidated scrutinizer’s report for its 39th Annual General Meeting, held on September 29, 2026, in compliance with Regulation 44(3) of the SEBI Listing Regulations. The company noted that a...
HFCL earns ‘Leader’ ESG rating of 70 from Niche Ninety Nine
Sep 18, 2026
HFCL Limited has received an Environmental, Social, and Governance rating of 70 in the “Leader” category from Niche Ninety Nine Capability and Certifications, a SEBI-registered ESG rating provider, based on publicly available informati...
HFCL boosts optical fibre capacity with ₹1,800 crore expansion drive
Sep 14, 2026
HFCL Limited’s board has approved an additional investment of about ₹820 crore to expand its optical fibre, optical fibre cable and preform manufacturing capacities, taking total planned capex for these projects to roughly ₹1,800...
HFCL to Invest ₹820 Crore More in Optical Fiber Capacity Expansion
Sep 14, 2026
HFCL Limited has approved an additional investment of about ₹820 crore to expand its optical fiber, optical fiber cable and preform manufacturing capacities, building on ₹980 crore of capex already sanctioned and taking total planned i...
HFCL Publishes Notice for 39th AGM, E-Voting and Dividend Key Dates
Sep 6, 2026
HFCL Limited has announced that it has published a public notice in leading English and Hindi newspapers regarding its 39th Annual General Meeting, which will be held on September 29, 2026 via video conferencing and other audio-visual means. The n...
HFCL streamlines shareholder access to annual report and AGM via digital links
Sep 5, 2026
HFCL Limited has notified the exchanges that it has dispatched letters to shareholders whose email addresses are not registered, providing a web link and QR code to access the company’s Annual Report for FY 2025-26 and the notice of its 39th...
HFCL Wins $244 Million Global Optical Fiber Cable Supply Deal
Sep 1, 2026
HFCL Limited has signed a three-year international supply agreement, via its overseas wholly owned subsidiary, to provide multi-million fiber kilometres of high-quality, high-fibre-count optical fiber cables to a global multinational corporation f...
HFCL shutters non-operational Australian subsidiary with no financial impact
Aug 19, 2026
HFCL Limited has announced that its Australian step-down subsidiary, HFCL Pty Ltd, has been voluntarily liquidated and deregistered with effect from August 19, 2026. The subsidiary had no business operations and reported nil revenue and negligible...
HFCL to Join Motilal Oswal Global Investor Conference for Business Update Discussions
Aug 15, 2026
HFCL Limited, a telecom equipment and network solutions provider, plays a significant role in India’s communications infrastructure through its optical fiber cable manufacturing and related services. The company targets both domestic and int...
HFCL to Engage Investors at Nuvama India Conference 2026
Aug 10, 2026
HFCL Limited has announced that its management will participate virtually in the Nuvama India Conference 2026 (Hong Kong Edition) on August 13, 2026, engaging with investors through group and one-on-one meetings. The discussions will cover general...
HFCL wins ₹523 crore export orders for optical fiber cables
Aug 2, 2026
HFCL Limited has secured export orders worth about USD 54.81 million, equivalent to roughly INR 522.73 crore, from renowned international customers for the supply of optical fiber cables tailored to customer specifications. The contracts, received...
HFCL Shifts Registered Office to Gurugram, Updates Corporate Charter
Jul 31, 2026
HFCL Limited has shifted its registered office from the State of Himachal Pradesh to the State of Haryana, with the new headquarters now located in Gurugram. The change has been formally approved by the Regional Director, Northern Region-II, and r...
HFCL opens special window for legacy physical share transfers under SEBI norms
Jul 30, 2026
HFCL Limited has announced the opening of a one-year special window, from February 5, 2026 to February 4, 2027, to re-lodge transfer requests for physical shares that were sold or purchased prior to April 1, 2019. The initiative follows a SEBI cir...
HFCL Publishes Shareholder Notices on Transfer of Unclaimed Dividends and Shares
Jul 30, 2026
HFCL Limited has notified the stock exchanges that it has published newspaper advertisements informing equity shareholders about the impending transfer of unpaid or unclaimed dividends and corresponding equity shares to the Investor Education and ...
HFCL posts Q1 FY27 earnings call transcript for investor access
Jul 29, 2026
HFCL Limited has submitted to the stock exchanges the transcript of its conference call discussing unaudited financial results for the first quarter ended June 30, 2026, for FY 2026-27. The Q1 FY27 call, held on July 22 and approved by the board t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.