HFCL Sees 7% Gain Following RailTel Contract Award Worth 135 Crore

HFCL Ltd Sees 7.5% Rise in Shares Following Rs 135-Crore Contract Win

Shares of HFCL Ltd surged 7.5% on May 27, driven by the company's win of a Rs 135.09 crore contract from RailTel Corporation of India Limited, a Government of India Undertaking, under the Ministry of Railways. The contract, worth Rs 135.09 crore, is for the Annual Maintenance Contract (AMC) of the project "Implementation of Secure Operations (OPS) Network" for data centers of Indian defence forces.

The AMC is set to be provided for a period of five years, ending in January 2031. HFCL designs, manufactures, and deploys advanced telecom and networking equipment, primarily building digital network infrastructure for telecommunications providers, enterprises, the defence sector, and railways.

This contract marks a significant milestone for HFCL, as the company had earlier undertaken the implementation of the Secure OPS Network for Indian defence forces under a project awarded by RailTel. The scope of the project included the establishment of a secure defence communication network comprising hardware, software, and data centre infrastructure, along with AI-enabled network security. The project was executed in accordance with the stipulated contractual requirements and prescribed technical and security specifications.

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Following the completion of the warranty period, RailTel has issued a purchase order for undertaking the AMC of the project. Under this AMC contract, HFCL will provide end-to-end maintenance support services aimed at ensuring high availability, reliability, and security of the network infrastructure supporting critical defence communication operations. The scope of work includes preventive and corrective maintenance, network monitoring, incident management, performance optimization, and 24x7 technical support services.

At 1:10 pm on May 27, HFCL shares were trading 7% higher at Rs 173.57 apiece, extending their surge in the last two months to nearly 150%. The stock continues to trade firmly above all key EMAs, indicating a strong uptrend and positive price structure. Volumes remained significantly higher than average, confirming aggressive accumulation at higher levels. RSI is placed near 78, reflecting strong bullish momentum and continued strength despite entering the overbought zone. The follow-up buying after the sharp rally suggests confidence among market participants and hints at potential continuation of the upward trajectory in the near term, provided the stock sustains above breakout levels.