HFCL Slips 2% After Blockbuster Rally As Investors Book Profits; Stock Still Up Over 90% In A Month

Mumbai, May 8:Shares of HFCL declined as much as 2% on Friday as investors booked profits after the telecom equipment maker’s blistering rally over the past month,fuelled by optimism around strong earnings, fresh orderwins and India’s telecom infrastructure push.

The stock fell in intraday trade after hitting a series of record highs this week, with some traders turning cautious following the sharp run-up. Despite Friday’s decline, HFCL remains one of the market’s strongest momentum plays, having surged more than 90% over the past month alone.

HFCL finally declined today after a non-stop rally as investors decided to lock in gains. Source: NSE

At the time of writing, the stock was trading 1.7% lower at Rs 143.8.

Non-stop Gains

HFCL had rallied for five consecutive sessions through Thursday, climbing nearly 37% during that period and touching fresh 52-week highs amid heavy trading volumes. The counter had risen as much as 3.7% in the previous session to hit an intraday high of ₹146.79.

The recent upmove has been driven by a combination of strong quarterly earnings, improving profitability and fresh telecom orders that boosted investor confidence in the company’s growth trajectory.

Positive Triggers

Earlier this month, HFCL announced that it, along with subsidiary HTL Ltd, secured orders worth around ₹84 crore from a leading private telecom operator for the supply of optical fibre cables. The development reinforced optimism around the company’s positioning in India’s expanding telecom and digital infrastructure space.

Despite today’s dip, the stock is still up over 90% in a month versus the Nifty 500 clocking only 4.6%. Source: NSE

Investor sentiment also received a boost after HFCL posted a sharp turnaround in fourth-quarter earnings. The company reported a consolidated net profit of ₹178.5 crore for Q4FY26 compared with a loss in the year-ago period, while revenue more than doubled year-on-year to ₹1,824 crore.

Bright Future

The company is increasingly being viewed as a beneficiary of long-term themes such as 5G rollout, fibre network expansion, data centregrowth and rising AI-linked infrastructure demand. HFCL’s growing order pipeline and improving execution have also contributed to the rerating in the stock.

However, the sharp rally has also raised concerns around stretched valuations and overheated technical indicators.

Markets are now expected to watch whether the company can sustain earnings momentum and continue securing large telecom and infrastructure contracts to justify the stock’s sharp rise.

Source:

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