Synopsis: A telecom infrastructure and products company has secured a Rs. 2,666.09 crore order from Rail Vikas Nigam Limited for the BharatNet Phase-III project in Uttar Pradesh (West). The contract includes telecom equipment deployment, optical fiber network creation, and a 10-year O&M commitment, reinforcing its role in India’s digital connectivity expansion.
A leading telecom infrastructure company has secured a large-scale government contract to expand India’s rural broadband connectivity network. The win adds significantly to its execution pipeline and reinforces its standing as a key delivery partner for national digital infrastructure programmes, marking continued momentum in the government’s push to bridge the country’s digital divide through optic fiber-led connectivity.
With a market capitalization of Rs.29,900 crore, the shares of HFCL Limited were trading at Rs.per share, up by 5 percent from the previous day’s closing of Rs.190, and it is trading at a P/E of approximately 96x.
Order Update
HFCL Limited has been awarded a contract valued at approximately Rs. 2,666.09 crore by Rail Vikas Nigam Limited (RVNL) for the BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle.
The scope of the contract includes supply of telecom equipment and related accessories with installation and commissioning, creation of an Optical Fiber Cable Telecom Network, and maintenance of the project for a period of 10 years, including a one-year warranty period. The contract is structured with a Capex component of ~ Rs. 1,192.82 crore and an Opex component of Rs. 1,473.27 crore, with a two-year implementation timeline followed by a ten-year O&M period.
This contract is in addition to HFCL’s earlier award of Rs. 2,167.65 crore from RVNL for BharatNet Phase-III projects in the Uttar Pradesh (East) and Uttar Pradesh (West) Telecom Circles, intimated to exchanges in January 2025.
Together, these wins position HFCL as one of the primary execution partners for BharatNet’s rollout in Uttar Pradesh, one of India’s largest and most strategically important telecom circles. For HFCL, this order meaningfully expands its order book and long-term revenue visibility, particularly on the recurring Opex side through a decade-long O&M engagement.
Financial Snapshot & Business Overview
HFCL Limited is a Himachal Pradesh-based, diversified telecom company engaged in manufacturing of optical fiber cables, telecom equipment, and defence products, alongside executing large-scale turnkey connectivity projects. The company operates through a network of subsidiaries and jointly controlled entities across India and internationally.
On a consolidated basis for FY26, HFCL reported total revenue from operations of Rs. 4,949.27 crore, compared to Rs. 4,064.52 crore in FY25. Net profit attributable to owners of the parent stood at Rs. 311.74 crore for FY26, against Rs. 177.41 crore in FY25FY26,
The company’s total order book of ₹21,206 crore is strategically diversified across three core segments to ensure long-term revenue visibility. The Networks segment accounts for the largest portion at ₹14,586 crore, followed by the Products segment at ₹3,508 crore, and the O&M (Operations & Maintenance) segment contributing ₹3,112 crore. This composition reflects the company’s ongoing shift toward a more sustainable, product-led revenue mix while maintaining its established expertise in large-scale network execution.
The Rs. 2,666 crore BharatNet order from RVNL is a material addition to HFCL’s execution pipeline, though investors will want to monitor project ramp-up timelines and margin profiles across the Capex and Opex phases of this multi-year engagement.
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