Synopsis:
A telecom equipment stock moved higher after its subsidiary bagged a contract from the Indian Army. The deal adds visibility to future revenues.
A telecom infrastructure stock saw buying interest after announcing a fresh order win from the Indian Army. Investors responded positively to the defense-linked contract, which strengthens the company’s order book and supports long-term revenue visibility.
HFCL Ltd, with a market capitalization of Rs. 10,387.24 crore, opened at Rs. 72.42, matching its intraday high, against a previous close of Rs. 71.78. The stock recorded a gain of 0.89 percent from the last close, with both the open and high remaining the same.
What’s the News?
HTL Limited, a material subsidiary of HFCL, has secured a contract worth approximately Rs. 101.82 crore from the Indian Army for the supply of Tactical Optical Fiber Cable and related accessories.
This indigenously manufactured solution has been engineered to withstand the weight of heavy armored vehicles, ensuring durability and reliability in extreme conditions. The specialized military-grade connectors enhance performance in demanding environments, making it suitable for critical defense operations.
Designed for mission-critical applications, the Tactical Optical Fiber Cable enables rapid deployment of communication links in challenging battlefield situations. Lightweight and portable, it can be carried in a backpack by infantry personnel, ensuring operational mobility and readiness.
The contract is scheduled to be executed by August 2026, strengthening HFCL’s defense communications portfolio and underlining its capability to deliver indigenous, high-performance telecom solutions.
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Financial Snapshot
On a quarter-on-quarter basis, revenue rose 8.7 percent to Rs. 871 crore in Q1FY26 from Rs. 801 crore in Q4FY25. Operating profit turned around to Rs. 28 crore from a loss of Rs. 37 crore, while negative profit before tax reduced its loss to Rs. 45 crore from Rs. 105 crore. Net loss narrowed to Rs. 29 crore from Rs. 83 crore, reflecting improved sequential performance.
Year-on-year, revenue fell 24.8 percent to Rs. 871 crore in Q1FY26 from Rs. 1,158 crore in Q1FY25. Operating profit dropped sharply by 84 percent to Rs. 28 crore from Rs. 175 crore, while profit before tax slipped to a loss of Rs. 45 crore against a profit of Rs. 119 crore. Net profit also declined, turning into a loss of Rs. 29 crore compared to a profit of Rs. 111 crore a year earlier, reflecting pressure on annual performance.
About the Company
HFCL Ltd (Himachal Futuristic Communications Limited) is a diversified telecom infrastructure player engaged in building telecom networks, undertaking system integration projects, and manufacturing advanced telecom equipment. The company is also a leading producer of optical fiber and optical fiber cables, with a growing presence across India’s digital and defense communication landscape.
Written By Manan Gangwar
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