Telecom infrastructure firm HFCL share were in sharp focus after the announcement of a significant contract win worth INR 157 crore from Tera Software, a key consortium partner of ITI. The order, part of the ambitious BharatNet Phase III initiative, lifted investor sentiment and sent the stock surging over 10% intraday.
HFCL-Tera Software Deal
HFCL disclosed that it has received a purchase order valued at approximately INR 157 crore for the supply of various types of optical fiber cables. These will be deployed across the West Bengal Telecom Circle under the BharatNet Phase III project—India’s flagship rural broadband mission aimed at expanding high-speed internet to underserved regions.
This order is to be executed over three years and does not involve any related party transactions, ensuring governance transparency. Notably, neither promoters nor group companies have any interest in the awarding consortium.
Market Reaction: A Spike in Momentum
Following the announcement, HFCL shares jumped 12.35% to INR 83.30 from the closing price of INR 74.14 on 9 May 2025 trading session. The stock’s 52-week range stands between INR 71.50 to 171 per share.
Despite losing 12% over the past year and 28.10% year-to-date, HFCL has delivered multibagger returns of over 700% over the past five years, underscoring long-term investor confidence. As of now, the company’s market capitalization stands at INR 11,931 crore.
Robust Order Book of INR 10,410 Crore
This fresh order adds to HFCL’s already impressive order book of INR 10,410 crore, as reported in December 2024. Of this, government contracts contribute INR 8,527 crore while INR 1,883 crore is attributed to private sector orders. In the previous quarter alone, the company had secured major contracts including:
- INR 2,501.3 crore from Punjab Telecom,
- INR 2,167.65 crore from Rail Vikas Nigam for Uttar Pradesh.
This upward trajectory underscores HFCL’s strategic alignment with national infrastructure goals and digital expansion efforts.
Company Profile
HFCL is a leading player in telecom infrastructure and digital networks, catering to telecom operators, enterprises, and governments. With deep expertise in fiber optics and electronics, HFCL is a key supplier of:
- 5G Radio Access Networks (RAN) and Transport
- Wi-Fi Systems
- Defense Electronics
- Intelligent Power Systems
The firm operates advanced R&D centers in India and overseas and boasts manufacturing facilities across India, supported by the government’s PLI (Production Linked Incentive) scheme.
Recently, HFCL also launched Unlicensed Band Radios with over 3,50,000 units deployed, bolstering its portfolio and global competitiveness.
Financial Snapshot: Q3FY25 Dip
Despite operational wins, HFCL’s Q3 FY25 financials showed a modest dip:
- Revenue: INR 1,011.95 crore (↓2% YoY)
- Net Profit: INR 73.65 crore (↓10.4% YoY)
These figures reflect short-term challenges, yet the order pipeline offers visibility into sustained future revenues.
Future Outlook
HFCL is focused on ramping up its export revenues, expanding production capacity, and strengthening its foothold in data center infrastructure and rural connectivity—especially relevant given India’s push for Digital India and next-gen network deployment.
Bottom Line
HFCL’s INR 157 crore order win marks more than just a commercial success—it underscores the company’s central role in India’s digital infrastructure transformation. With a robust order book of INR 10,410 crore, technical strength, and strategic alignment with national goals, HFCL remains a key stock in telecom infra space.
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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a registered financial advisor before making any investment decisions.