HFCL shares surge 50% in a month as defence and fibre orders fuel rally

Key facts

• HFCL shares surged from ₹70.77 to ₹106 in one month, a gain of nearly 50%.
• The stock has risen 1,140% (12.4 times) from its March 2020 low of ₹8.75.
• HFCL secured two large orders totalling ₹11,525 crore in March–April 2026.
• Export orders worth $72.96 million for optical fibre cables were announced via its overseas subsidiary.
• A subsidiary received an order of ₹1,367 crore for optic fibre cables.
• HFCL’s market capitalisation stands close to ₹16,400 crore.
• The company plans to expand OFC capacity to 42.4 million fkm by FY27.
• Defence revenue target is ₹400-500 crore in FY27, scaling to ₹1,000 crore by FY28.

A 50% monthly surge puts HFCL in the spotlight

Shares of HFCL Ltd, a leading optical fibre cable supplier and defence electronics manufacturer, have surged from ₹70.77 to ₹106 in the past month, a rally of nearly 50%. The stock closed at ₹107.10 on Wednesday, giving the company a market capitalisation of close to ₹16,400 crore. This sharp rise comes as investors reassess the company’s prospects amid a flurry of large orders and a strategic pivot into defence. The rally has extended a longer-term trend: HFCL shares have gained 285% over the past five years and 1,140% from their March 2020 low of ₹8.75.

Massive order book and hyperscaler contract underpin growth

HFCL secured two large orders aggregating ₹11,525 crore during March and April 2026.’s subsidiary also received an order of ₹1,367 crore for optic fibre cables. In addition, HFCL announced export orders worth $72.96 million for optical fibre cables through its overseas wholly owned subsidiary from an international customer. Arihant Capital Markets highlighted that HFCL has signed a $1.1 billion long-term contract with a global hyperscaler to supply over the next five years. This contract is part of a structural shift from telecom to data centre and AI infrastructure, boosting demand for higher fibre cables up to 6,912 fibres.

Defence foray offers medium-term revenue visibility

HFCL’s entry into the defence vertical is gaining momentum. The company has developed electronic fuzes with a 96% success rate and holds near-monopoly positions in thermal weapon sights and wire harnesses. The electronic fuzes trial is expected by May or June 2026. The company’s defence portfolio also includes radars, aerostructures, and thermal weapon systems, consolidated under its subsidiary HASPL after the recent ₹25 crore acquisition of Spiral EHL. Brokerages target defence revenue of ₹400-500 crore in FY27, scaling to ₹1,000 crore by FY28. An upcoming ammunition complex with a capex of ₹1,390 crore provides a first-mover advantage.

Capacity expansion and vertical integration drive fibre business

HFCL is expanding its optical fibre cable capacity to 40 million f.km by December 2026, with a further target of 42.4 million f.km by FY27. The company is also pursuing backward integration into preform manufacturing, which should improve margins. Higher fibre cable price realisations are more than double those of conventional cables, driven by demand from 5G, data centres, and upcoming 6G technology. Sunidhi Institutional Research noted that FY26 was an inflection point for HFCL, with an unprecedented demand wave for fibre cables from hyperscalers in the latter part of the year.

Brokerages see nearly 40% upside despite recent rally

Domestic brokerage firms remain positive on HFCL despite the stock’s recent surge. They see nearly a 40% upside from current levels, citing the company’s strong order book, defence diversification, and capacity expansion. The stock has risen nearly 55% in 2026 alone. Geojit Investments highlighted that growth visibility is strengthened by a rising share of product-led and private orders, strong hyperscale data-centre demand, and planned capacity expansion. Arihant Capital Markets pointed to indigenous technologies and a near-monopoly in certain defence products as supporting future growth.

Execution and margin improvement are key to sustaining momentum

Investors are watching HFCL’s ability to convert its large order book into revenues on time. Fast project execution, few delays, and smooth delivery build confidence and revenue visibility. The company’s Q4 earnings, due on Thursday, April 30, will provide the first major test of its execution capabilities. Margin and profit growth are also critical. If raw material costs decline, product mix improves, and operating efficiency increases, profits can grow faster than sales, supporting higher stock valuations. Export growth, which diversifies business beyond India, is another positive factor.

Outlook: a multibagger with risks to manage

HFCL has transformed from a telecom-focused optical fibre supplier into a diversified technology player with significant defence exposure. The stock’s 12-fold rise from its pandemic lows reflects this evolution, but the current valuation already prices in much of the optimism. The company’s success hinges on executing its defence contracts, expanding fibre capacity, and maintaining margin discipline. With a mega-hyperscaler contract and a robust order book, the foundation is laid. But investors will need to see consistent quarterly results to justify the rally.

The bottom line

• HFCL shares have surged 50% in a month and 1,140% from March 2020 lows, driven by a massive order book and defence diversification.
• The company secured orders worth ₹11,525 crore in March–April 2026, including a $1.1 billion long-term hyperscaler contract.
• Defence revenue is targeted at ₹400-500 crore in FY27, scaling to ₹1,000 crore by FY28, with electronic fuzes trials expected by mid-2026.
• OFC capacity is expanding to 42.4 million f.km by FY27, with backward integration into preform manufacturing to improve margins.
• Brokerages see nearly 40% upside from current levels, but execution and margin improvement are critical to sustaining the rally.
• Q4 earnings on April 30 will be a key catalyst for the stock’s near-term direction.