HFCL Hits 52-Week High Again After Q4 Turnaround, Strong Guidance Fuels Re-Rating

Mumbai, May 4: Shares of HFCL surged sharply, hitting a 52-week high again, as investors cheered a strong Q4 turnaround and an upbeat long-term growth outlook shared by the telecom equipment maker.

The stock, which hit a high of Rs 128.49 eclipsing its previous 52-week peak scaled last week, has already run up more than seventy percent over one month, marking its best monthly performance in more than five years and placing it firmly among the top momentum plays in the midcap space.

The stock is rallying on a recovery on Monday. Source: NSE

At the time of writing, the stock was up six percent at Rs 123.

Dramatic Improvement

The rally was sparked by a dramatic improvement in the company’s March quarter performance. HFCL swung to a net profit of about ₹178 crore in Q4FY26, compared to a loss in the year-ago period, marking a clear earnings turnaround. At the same time, revenue more than doubled year-on-year to around ₹1,824 crore, driven by strong execution and robust order inflows.

The numbers signal more than just a one-off recovery—they point to a structural shift in the business mix. The company has been moving from project-led revenues to higher-margin product segments, alongside increasing exports and improving realisations in optical fibre cables. This has translated into better margins and stronger operating leverage.

Record Orders

Adding to the bullish sentiment is HFCL’s record order book, which has surged to over ₹21,000 crore, providing multi-year revenue visibility. The size and quality of this pipeline have reassured investors that the earnings recovery is sustainable rather than cyclical.

Good Guidance

But perhaps the biggest trigger for the stock’s sharp move is the forward guidance. The company has laid out an ambitious roadmap, targeting EBITDA margins of around 20–21% by FY29, alongside steady revenue growth supported by telecom, defence and data infrastructure demand. This long-term visibility has effectively shifted the narrative from turnaround to growth story.

HFCL is also riding multiple structural tailwinds. The company is expanding into data centre interconnect solutions, a segment seeing strong demand due to the rapid build-out of AI infrastructure. It is also deepening its presence in defence electronics and global telecom exports, diversifying beyond its traditional domestic business.

The market response reflects this re-rating. The stock has outperformed even in a volatile broader market, with investors pricing in improved earnings visibility and a more predictable growth trajectory.

Caution Remains

That said, some caution remains beneath the surface. After the sharp rally, valuations have expanded significantly, and sustaining momentum will depend on consistent execution and delivery on guidance.

For now, though, the message from the market is clear: HFCL is no longer being seen as a laggard struggling with cyclical headwinds, but as a company emerging into a structurally stronger phase—its stock price reflecting that shift in perception.

Source:

• https://www.nseindia.com/get-quote/equity/HFCL/HFCL-Limited