HFCL Shares Drop 10% Following Impressive 165% Surge in 2026
HFCL shares slip 10% in two sessions after sharp 165% rally in 2026
Image: The Economic Times
HFCL shares fell nearly 5% to ₹177.87, marking a 10% decline over two sessions after a significant 165% rally in 2026, driven by strong demand for optical fibres and defence orders. Despite recent losses, the company reported substantial revenue growth and a turnaround in profitability.
- 01HFCL shares have corrected about 10% in two sessions after a 165% increase in 2026.
- 02The company reported a revenue of ₹1,824 crore and a net profit of ₹184 crore for the March quarter.
- 03HFCL's product revenue mix has shifted from 27% in FY21 to 59% in FY26, with exports now making up 41% of revenue.
- 04The company received a ₹135.09 crore order from RailTel Corporation for a defence project.
- 05HFCL's current price-to-earnings ratio stands at approximately 91.93, raising valuation concerns.
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HFCL shares have seen a significant decline, dropping nearly 5% in intraday trading to ₹177.87, resulting in a total loss of about 10% over two consecutive sessions. This decline follows an impressive 165% rally throughout 2026, primarily driven by increased demand for optical fibres and substantial defence orders. Despite the recent pullback, HFCL has shown strong operational performance, with revenues nearly doubling year-on-year to ₹1,824 crore and a net profit of ₹184 crore, indicating a robust turnaround from previous losses. The company's evolving business model is highlighted by a shift in product revenue, which has increased significantly, and a recent order worth ₹135.09 crore from RailTel Corporation for a defence-related project. However, valuation concerns have emerged as HFCL's price-to-earnings ratio is around 91.93, which is considerably higher than its peers, and technical indicators suggest the stock may be overbought, indicating potential for a short-term consolidation.
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The decline in HFCL shares may affect investor sentiment and market confidence in the telecom sector, particularly for companies involved in defence and digital infrastructure.
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