Telecom - Services
Valuation | |
|---|---|
| Market Cap | 9.9 kCr |
| Price/Earnings (Trailing) | 343.05 |
| Price/Sales (Trailing) | 2.61 |
| EV/EBITDA | 28.84 |
| Price/Free Cashflow | 67.01 |
| MarketCap/EBT | 171.78 |
| Enterprise Value | 11.42 kCr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | 12.3% |
| Price Change 1M | 1.2% |
| Price Change 6M | -6.4% |
| Price Change 1Y | -27.9% |
| 3Y Cumulative Return | -0.30% |
| 5Y Cumulative Return | 18.9% |
| 7Y Cumulative Return | 17.2% |
| 10Y Cumulative Return | 12.6% |
| Revenue (TTM) |
| 3.79 kCr |
| Rev. Growth (Yr) | -4.6% |
| Earnings (TTM) | 31.9 Cr |
| Earnings Growth (Yr) | -1.9% |
Profitability | |
|---|---|
| Operating Margin | 2% |
| EBT Margin | 2% |
| Return on Equity | 0.76% |
| Return on Assets | 0.40% |
| Free Cashflow Yield | 1.49% |
Cash Flow & Liquidity |
|---|
| Cash Flow from Investing (TTM) | -518.39 Cr |
| Cash Flow from Operations (TTM) | 396 Cr |
| Cash Flow from Financing (TTM) | 169.58 Cr |
| Cash & Equivalents | 29.43 Cr |
| Free Cash Flow (TTM) | 165.83 Cr |
| Free Cash Flow/Share (TTM) | 1.15 |
Balance Sheet | |
|---|---|
| Total Assets | 7.96 kCr |
| Total Liabilities | 3.78 kCr |
| Shareholder Equity | 4.18 kCr |
| Current Assets | 5.67 kCr |
| Current Liabilities | 3.16 kCr |
| Net PPE | 824.81 Cr |
| Inventory | 1.15 kCr |
| Goodwill | 26.17 Cr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.19 |
| Debt/Equity | 0.37 |
| Interest Coverage | -0.73 |
| Interest/Cashflow Ops | 3 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 0.1 |
| Dividend Yield | 0.15% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 4.7% |
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Size: Market Cap wise it is among the top 20% companies of india.
Balance Sheet: Strong Balance Sheet.
Smart Money: Smart money looks to be reducing their stake in the stock.
Past Returns: Underperforming stock! In past three years, the stock has provided -0.3% return compared to 12.8% by NIFTY 50.
Insider Trading: Significant insider selling noticed recently.
Growth: Declining Revenues! Trailing 12m revenue has fallen by -19.3% in past one year. In past three years, revenues have changed by -19.1%.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Size: Market Cap wise it is among the top 20% companies of india.
Balance Sheet: Strong Balance Sheet.
Smart Money: Smart money looks to be reducing their stake in the stock.
Past Returns: Underperforming stock! In past three years, the stock has provided -0.3% return compared to 12.8% by NIFTY 50.
Insider Trading: Significant insider selling noticed recently.
Growth: Declining Revenues! Trailing 12m revenue has fallen by -19.3% in past one year. In past three years, revenues have changed by -19.1%.
Investor Care | |
|---|---|
| Dividend Yield | 0.15% |
| Dividend/Share (TTM) | 0.1 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 0.2 |
Financial Health | |
|---|---|
| Current Ratio | 1.79 |
| Debt/Equity | 0.37 |
Technical Indicators | |
|---|---|
| RSI (14d) | 58.09 |
| RSI (5d) | 84.36 |
| RSI (21d) | 51.22 |
| MACD Signal | Buy |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Buy |
| RSI Signal | Hold |
| RSI5 Signal | Sell |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal |
Summary of HFCL's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
In the earnings call for the second quarter of FY26 on October 17, 2025, management provided an optimistic outlook for HFCL, emphasizing growth across several sectors. They foresee strong demand in both optical fiber cables and defense products, driven by a significant increase in data consumption and government initiatives toward self-reliance in defense manufacturing.
Key forward-looking points include:
Revenue Guidance: Management is maintaining a revenue growth guidance of approximately 20% for the fiscal year, with an expectation to see continued revenue increases stemming from ongoing expansions and new contracts.
Optical Fiber Cable Expansion: HFCL is expanding its manufacturing capacity from 1.73 million fiber kilometers per annum to 19.01 million by June 2026, aiming for a total capacity of 42.36 million fiber kilometers per annum. This positions the company among the top global manufacturers.
Financial Performance:
Defense Opportunities: Management highlighted expected revenues from the defense sector to reach approximately INR 200 Crores in FY26, with projections of over INR 500 Crores in FY27, and potential to exceed INR 1,000 Crores in subsequent years due to multiple product lines under development.
Order Book: As of September 30, 2025, the order book stands at INR 9,981 Crores, indicating healthy future revenue streams.
Market Trends: Management noted that the demand for optical fiber is expected to maintain a strong CAGR of approximately 22.39% over the next five years, correlating with increased smartphone usage and OTT consumption, alongside a resurgence in global demand for Optical Fiber Cable (OFC).
These points exemplify HFCL's strategic focus on innovation, capacity expansion, and positioning to meet growing domestic and global market demands.
Understand HFCL ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| MN VENTURES PRIVATE LIMITED | 13.92% |
| NEXTWAVE COMMUNICATIONS PRIVATE LIMITED | 12.73% |
| QUANT MUTUAL FUND - QUANT MULTI CAP FUND | 6.34% |
| RELIANCE STRATEGIC BUSINESS VENTURES LIMITED | 3.17% |
| Reliance Ventures Limited | 1.48% |
| FITCORE TECH-SOLUTIONS PRIVATE LIMITED | 1.45% |
| RAJASTHAN GLOBAL SECURITIES PRIVATE LIMITED |
Detailed comparison of HFCL against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| TEJASNET | Tejas Networks | 6.03 kCr | 2.71 kCr | -24.20% | -60.70% | -7.83 | 2.23 | - | - |
| STLTECH | Sterlite Tech | 5.19 kCr | 4.41 kCr |
Comprehensive comparison against sector averages
HFCL metrics compared to Telecom
| Category | HFCL | Telecom |
|---|---|---|
| PE | 343.05 | 84.78 |
| PS | 2.61 | 4.86 |
| Growth | -19.3 % | 12.9 % |
HFCL Limited manufactures and sells telecom products in India and internationally. It operates in Telecom Products; and Turnkey Contracts and Services segments. The company offers optical fiber cables, such as underground, aerial, microduct, FTTH, and micromodule cables; telecom products and solutions, which includes unlicensed band backhaul radios, Wi-Fi access points, routers, managed switches, antennas, network management solutions, and 5g product portfolio; defence product portfolio comprising electronic fuzes, electro optics, high capacity radio relay, software defined radios, and ground surveillance radars; and passive networking components includes high density cabinets, joint closures, optical splitters, aerial cable accessories, fiber optic cable assemblies, and copper cable assemblies. It provides network solutions for public telecommunications, defence and railway communications, and system integration services. The company has a collaboration agreement with Qualcomm Technologies, Inc. for developing 5G RAN and access products. The company was formerly known as Himachal Futuristic Communications Limited and changed its name to HFCL Limited in October 2019. HFCL Limited was incorporated in 1987 and is based in New Delhi, India.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| Buy |
| SMA 20 Signal | Buy |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
HFCL vs Telecom (2021 - 2026)
1. Question: What will be the impact of U.S. tariffs on our business? Are we maintaining our 20% guidance on revenue for this year?
Answer: Yes, we are maintaining our 20% revenue guidance. You will see an increase in revenue in the current quarter. Regarding the U.S. tariffs, we have managed to minimize their impact legally, ensuring minimal effect on HFCL's exports, primarily optical fiber cables to the U.S. Although tariffs exist, they are not severely detrimental to our business.
2. Question: Can you discuss how HFCL is positioned in the defense sector and its expected revenues?
Answer: The defense market is poised for robust growth due to government emphasis on self-reliance. We expect approximately INR 200 crore in revenue this fiscal year from defense, with projections exceeding INR 500 crore next year and possibly reaching 4 figures later. Our ongoing projects include significant contracts for electronic fuzes and radar systems, which will enhance our position within the ecosystem.
3. Question: What margins can we expect in the defense segment?
Answer: Margins in the defense market are generally better than standard communication products, averaging around 15%. However, they can vary between 10% to 25%, depending on the product.
4. Question: Could you elaborate on the passive connectivity solutions being developed for hyperscale data centers?
Answer: We're developing multiple passive connectivity solutions, including MPO cable solutions for rack-to-rack connectivity. We anticipate that our revenue from these passive solutions, currently around INR 400 crore, could reach over INR 1,000 crore in the next financial year due to increasing demand from hyperscale data centers.
5. Question: What should we expect regarding pricing trends for optical fiber and cable?
Answer: The pricing for fiber optic cables has improved, increasing from INR 850 to INR 950 per kilometer recently. This upward trend, driven by heightened demand from both data centers and telcos, is expected to continue, reflecting a strong demand-supply dynamic.
6. Question: How is capacity utilization currently?
Answer: Our current capacity utilization stands at around 90%, and we are actively expanding our capacity to meet growing demand.
7. Question: What are HFCL's plans for future expansions, especially in defense capabilities?
Answer: We are expanding our defense capabilities significantly, including the establishment of a facility in Andhra Pradesh for manufacturing ammunition. This, along with trials for various defense products, positions us for substantial revenue growth in the coming years.
8. Question: What is the expected contribution of O&M (operation and maintenance) contracts?
Answer: O&M contributions are expected to increase starting next year, with margins anticipated around 20%. Currently, O&M has minimal contribution as major contracts will kick in from the next fiscal year.
9. Question: How do we perceive the impact of competition from Chinese products?
Answer: China is less of a competitive threat in developed markets like the U.S. and Europe, mainly due to geopolitical concerns. Consequently, HFCL is well-positioned in current markets, not significantly impeded by Chinese suppliers.
These detailed answers encapsulate the strategic insights, financial expectations, and operational strategies discussed during the call.
| 1.25% |
| NECTA BLOOM VCC - NECTA BLOOM ONE | 1.04% |
| MAHENDRA NAHATA | 0.09% |
| ANANT NAHATA | 0.04% |
| VINSAN BROTHERS PRIVATE LIMITED | 0.04% |
| SHANKAR SALES PROMOTION PRIVATE LIMITED | 0.02% |
| ABHINAV OSWAL | 0% |
| AARIV NAHATA | 0% |
| KAMAL OSWAL | 0% |
| KRISHIV NAHATA | 0% |
| MANISHA OSWAL | 0% |
| NEHA NAHATA | 0% |
| PRIYANKA SANGHI | 0% |
| PUSHPA DEVI MALOO | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
| +3.00% |
| +0.50% |
| -116.87 |
| 1.18 |
| - |
| - |
| VINDHYATEL | Vindhya Telelinks | 1.45 kCr | 4.16 kCr | -13.00% | -25.80% | 5.42 | 0.35 | - | - |
| PARACABLES | Paramount Communications | 1.02 kCr | 1.82 kCr | -15.90% | -52.50% | 13.9 | 0.56 | - | - |
| 950 |
| 930 |
| 918 |
| 932 |
| 1,006 |
| 1,050 |
| Profit Before exceptional items and Tax | 331% | 107 | -44.89 | -103.83 | 100 | 101 | 119 |
| Exceptional items before tax | -23.5% | 0 | 0.19 | 0 | 0 | 0 | 0 |
| Total profit before tax | 331.9% | 107 | -44.7 | -103.83 | 100 | 101 | 119 |
| Current tax | 4377.8% | 5.03 | 1.09 | -26.38 | 19 | 20 | 21 |
| Deferred tax | 260.1% | 29 | -16.49 | 4.75 | 8.42 | 9.01 | -13.35 |
| Total tax | 301.2% | 34 | -15.4 | -21.63 | 28 | 29 | 8.14 |
| Total profit (loss) for period | 334.3% | 72 | -29.3 | -83.3 | 73 | 73 | 111 |
| Other comp. income net of taxes | -123.1% | -7.79 | 39 | -54.79 | -50.21 | -125.93 | 195 |
| Total Comprehensive Income | 630.9% | 64 | 9.62 | -138.09 | 22 | -52.6 | 306 |
| Earnings Per Share, Basic | 56.6% | 0.47 | -0.22 | -0.56 | 0.51 | 0.51 | 0.77 |
| Earnings Per Share, Diluted | 56.6% | 0.47 | -0.22 | -0.56 | 0.51 | 0.51 | 0.77 |
| 3% |
| 273 |
| 265 |
| 280 |
| 262 |
| 216 |
| 194 |
| Finance costs | 29.8% | 149 | 115 | 117 | 133 | 148 | 90 |
| Depreciation and Amortization | 47.4% | 85 | 58 | 57 | 57 | 54 | 30 |
| Other expenses | 0% | 279 | 279 | 255 | 232 | 186 | 158 |
| Total Expenses | -3.9% | 3,615 | 3,762 | 4,103 | 3,949 | 3,839 | 3,240 |
| Profit Before exceptional items and Tax | -41.6% | 241 | 412 | 342 | 382 | 300 | 328 |
| Exceptional items before tax | - | 0 | 0 | 0 | 0 | -4.13 | 0 |
| Total profit before tax | -41.6% | 241 | 412 | 342 | 382 | 296 | 328 |
| Current tax | -38.5% | 33 | 53 | 53 | 97 | 76 | 53 |
| Deferred tax | -72.9% | 14 | 49 | 34 | 1.93 | -2.69 | 71 |
| Total tax | -54.9% | 47 | 103 | 87 | 99 | 73 | 124 |
| Total profit (loss) for period | -37.2% | 195 | 310 | 255 | 283 | 223 | 204 |
| Other comp. income net of taxes | -128.6% | -35.92 | 130 | 3.54 | 1.79 | 4.68 | -0.74 |
| Total Comprehensive Income | -64% | 159 | 440 | 258 | 285 | 228 | 203 |
| Earnings Per Share, Basic | -70.6% | 1.35 | 2.19 | 1.85 | 2.15 | 1.74 | 1.59 |
| Earnings Per Share, Diluted | -70.6% | 1.35 | 2.19 | 1.85 | 2.15 | 1.74 | 1.61 |
| Debt equity ratio | - | - | 0 | - | - | - | - |
| 37.6% |
| 645 |
| 469 |
| 318 |
| 331 |
| 343 |
| 332 |
| Capital work-in-progress | -51.9% | 76 | 157 | 211 | 122 | 37 | 46 |
| Investment property | 56.2% | 26 | 17 | 14 | 12 | 32 | 17 |
| Non-current investments | -16.9% | 109 | 131 | 256 | 167 | 37 | 37 |
| Loans, non-current | 34.5% | 40 | 30 | 93 | 88 | 82 | 72 |
| Total non-current financial assets | -3.8% | 617 | 641 | 1,122 | 896 | 727 | 646 |
| Total non-current assets | 6.1% | 2,167 | 2,042 | 2,283 | 1,885 | 1,549 | 1,327 |
| Total assets | 3.4% | 7,424 | 7,179 | 7,119 | 6,130 | 5,527 | 5,080 |
| Borrowings, non-current | 19.8% | 394 | 329 | 225 | 135 | 86 | 84 |
| Total non-current financial liabilities | 22% | 412 | 338 | 232 | 144 | 107 | 90 |
| Provisions, non-current | 2% | 51 | 50 | 47 | 44 | 42 | 38 |
| Total non-current liabilities | 17.2% | 559 | 477 | 372 | 263 | 200 | 154 |
| Borrowings, current | 20.1% | 922 | 768 | 732 | 684 | 599 | 519 |
| Total current financial liabilities | -3.1% | 2,430 | 2,507 | 2,589 | 1,947 | 1,800 | 1,882 |
| Provisions, current | 7.1% | 16 | 15 | 10 | 12 | 13 | 12 |
| Current tax liabilities | 24% | 0.81 | 0.75 | 0.83 | 0.26 | 1.63 | 2.48 |
| Total current liabilities | 4.5% | 2,864 | 2,740 | 2,685 | 2,045 | 1,902 | 1,934 |
| Total liabilities | 6.4% | 3,423 | 3,216 | 3,057 | 2,308 | 2,102 | 2,087 |
| Equity share capital | 0% | 144 | 144 | 144 | 144 | 143 | 138 |
| Total equity | 1% | 4,001 | 3,963 | 4,061 | 3,822 | 3,424 | 2,993 |
| Total equity and liabilities | 3.4% | 7,424 | 7,179 | 7,119 | 6,130 | 5,527 | 5,080 |
| 0 |
| 0 |
| 0 |
| -8.26 |
| - |
| - |
| Net Cashflows from Operations | 2058.3% | 424 | -20.6 | 264 | 189 | - | - |
| Income taxes paid (refund) | -108.9% | -6.88 | 90 | 79 | 48 | - | - |
| Net Cashflows From Operating Activities | 484.3% | 431 | -110.9 | 185 | 141 | - | - |
| Cashflows used in obtaining control of subsidiaries | - | 0.36 | 0 | 10 | 13 | - | - |
| Proceeds from sales of PPE | -51.6% | 0.06 | 0.38 | -0.38 | 0.52 | - | - |
| Purchase of property, plant and equipment | 51.8% | 209 | 138 | 118 | 98 | - | - |
| Proceeds from sales of investment property | - | 4.24 | 0 | 0 | 0 | - | - |
| Proceeds from sales of intangible assets | -112.6% | 0 | 8.95 | 0 | 0 | - | - |
| Purchase of intangible assets | -20.9% | 179 | 226 | 147 | 38 | - | - |
| Proceeds from government grants | - | 0 | 0 | 43 | 0 | - | - |
| Dividends received | -1% | 0 | 0.01 | 15 | 0 | - | - |
| Interest received | -31.6% | 14 | 20 | 0 | 16 | - | - |
| Other inflows (outflows) of cash | -103.1% | -122.38 | -59.74 | 251 | -238.13 | - | - |
| Net Cashflows From Investing Activities | -23.1% | -504.96 | -409.91 | -10.54 | -387.79 | - | - |
| Proceeds from issuing shares | -100.1% | 0.66 | 353 | 3.08 | 606 | - | - |
| Proceeds from issuing other equity instruments | -87.5% | 10 | 73 | 28 | 0 | - | - |
| Proceeds from borrowings | 80.6% | 467 | 259 | 109 | 54 | - | - |
| Repayments of borrowings | 350% | 190 | 43 | 117 | 246 | - | - |
| Payments of lease liabilities | 53.6% | 10 | 6.86 | 9.81 | 8.59 | - | - |
| Dividends paid | 0% | 29 | 29 | 24 | 19 | - | - |
| Interest paid | 19% | 139 | 117 | 116 | 134 | - | - |
| Other inflows (outflows) of cash | 90.1% | 0 | -9.06 | 0 | -10.5 | - | - |
| Net Cashflows from Financing Activities | -77% | 111 | 480 | -127.3 | 242 | - | - |
| Net change in cash and cash eq. | 186.8% | 37 | -40.49 | 47 | -4.95 | - | - |
Analysis of HFCL's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2025
| Description | Share | Value |
|---|---|---|
| Telecom Products | 59.7% | 722.1 Cr |
| Turnkey Contracts and Services | 40.3% | 488 Cr |
| Total | 1.2 kCr |