HFCL Hits Upper Circuit for Second Day as Stock Surges 230% in FY27 on Strong Order Wins and Rating Upgrade

6 Jul 2026 , 03:15 PM

Shares of HFCL remained locked at the 5% upper circuit for the second straight trading session, reflecting strong bullish sentiment in the counter. The stock is trading near ₹225 levels, marking fresh record highs amid sustained buying interest.

Trading activity also showed strong participation, with high volumes on both NSE and BSE and significant pending buy orders, indicating continued demand pressure.

Massive Rally: HFCL Up 230% in FY27

HFCL has emerged as one of the standout performers in FY27, delivering a sharp multibagger-style rally:

• Stock up around 230%+ in FY27 so far
• Gained nearly 20% in the past month
• Significantly outperformed broader indices such as Nifty 50 and Nifty 500
• Rebounded strongly from its 52-week low of around ₹59.8

This consistent uptrend has placed HFCL among the top-performing telecom infrastructure stocks in the market.

Key Growth Trigger: ₹2,666 Crore RVNL Order

A major driver behind the rally is the large-scale contract secured from Rail Vikas Nigam Limited (RVNL).

The ₹2,666.09 crore order is part of the BharatNet Phase-III project in Uttar Pradesh (West). The project includes:

• Supply and installation of telecom equipment
• Optical fibre cable network development
• Long-term maintenance for 10 years

This order significantly strengthens HFCL’s long-term revenue visibility and reinforces its position in the telecom infrastructure segment.

Subsidiary Credit Rating Upgrade Boosts Sentiment

Adding to the positive sentiment, HFCL’s subsidiary HTL Limited received a credit rating upgrade from CARE Ratings.

Key highlights include:

• Long-term bank facilities upgraded to ‘CARE A (CE); Positive’
• Short-term facilities also upgraded to higher rating bands
• Reflects improved financial strength and operational stability

The upgrade signals stronger lender confidence and improved business fundamentals for the subsidiary.

Why HFCL Stock Is Seeing Strong Buying Interest

The sustained rally in HFCL is being driven by multiple supportive factors:

• Strong order inflows from government-linked infrastructure projects
• Exposure to BharatNet Phase-III telecom expansion
• Positive credit rating action on subsidiary operations
• Heavy trading volumes and momentum-driven breakout
• Structural growth tailwinds in telecom and defence infrastructure

Risks and Caution Factors

Despite the strong rally, investors should remain cautious:

• Stock has already seen a sharp run-up of over 200%+
• Upper circuit limits indicate restricted price discovery
• Execution risks in large-scale long-duration projects
• Possibility of volatility after momentum-driven rallies

 

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