Small-Cap Stock Sees 140% Surge in Under Two Months.

HFCL Shares Surge to Record Highs as Investor Sentiment Remains Buoyed

Shares of HFCL (Himachal Futuristic Communications Limited) have been making significant strides on Dalal Street in recent months, hitting multiple record highs and defying broader market volatility. The stock has delivered multibagger returns in under two months, with a cumulative rise of nearly 140% since April.

The company's sharp recovery began in April with a 71% surge, followed by a 40.34% gain in May. This took the stock to a record high of ₹163 apiece in today's trade. The rally has been driven by steady order wins and a solid March quarter performance, which helped the stock defy market volatility.

Multiple Order Wins Keep Momentum Strong

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HFCL has been securing new orders, expanding its order book and revenue visibility. The latest order win is a ₹106 crore export order for the supply of optical fibre cables. Earlier in May, the company had also secured export orders worth nearly ₹183.95 crore for similar supplies from international customers.

The telecom gear maker exported around 70% of its optical fibre cable production during the last financial year. During the year, it also secured a long-term global optical fibre cable supply contract valued at approximately ₹10,159 crore, providing strong multi-year revenue visibility. HFCL ended FY26 with a total order book of ₹21,206 crore, which is 4.28 times higher than its FY26 revenue.

Sharp Turnaround in March Quarter Earnings

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For the March-ended quarter (Q4FY26), the company reported a sharp turnaround in earnings, posting a net profit of ₹178.5 crore in Q4 FY26 compared with a loss of ₹81.4 crore in the same period last year. On the top line, revenue from operations stood at ₹1,824 crore, marking a 128% jump from ₹800.7 crore reported in the corresponding quarter last year. In terms of operating profitability, EBITDA stood at ₹315 crore against an EBITDA loss of ₹36 crore a year ago.

Outlook and Expansion Plans

During FY26, demand remained strong across optical fibre cable, telecom infrastructure, and defence, driven by data center expansion, global 5G deployments, rising data consumption, defence modernisation, inventory build-up, and the evolving geopolitical environment. The company said it is on track to enhance its OFC manufacturing capacity to 43 million fkm by June 2026 and expand optical fibre capacity to 28 million fkm from 14 million fkm, with the next phase targeting 33.9 million fkm by December 2026.

Looking ahead, HFCL expects EBITDA margins to expand from 16.7% in FY26 to 20–21% by FY29. The company is also targeting more than 70% of revenue from products and over 50% of revenue from exports by FY27.