Mumbai News, 25 February 2026: HFCL Limited (NSE: HFCL), a leading company in the telecom and optical fibre sector, saw positive trading in its shares this morning. At 11:33 am, the share price on NSE was ₹69.94, up 0.77% from the previous session’s closing price of ₹69.40. By 12:29 pm, the price had reached ₹70.55, marking a 1.66% increase. A similar trend was seen on BSE, where the share was trading between ₹70.50-70.60.
Live updates (25 February 2026):
NSE: Open ₹69.50-70.00, day high ₹70.55, day low ₹69.46, volume around 4.8 million shares (till afternoon).
BSE: Same price range, volume around 5-6 lakh shares.
Market cap: around ₹10,600-10,700 crore.
52-week range: Low ₹59.82, High ₹93.96.
PE ratio: around 170-204 (indicates high valuation).
P/B ratio: around 2.57
There was some short-term volatility in the shares, but the new news from the IIT Delhi consortium has created positive vibes.
HFCL joins IIT Delhi-led consortium; will develop hollow-core fibre technology
On 23-24 February 2026, HFCL made a big announcement. The company has joined an Indian telecom department (DoT)-supported research consortium, led by IIT Delhi. The aim of this project is to develop hollow-core fibre (HCF) technology. This technology is different from traditional solid-core fibre – light travels through air, which reduces latency, saves energy, and is extremely useful for 6G, quantum communication, and AI data centres.
HFCL’s Managing Director Mahendra Nahata said, “We are happy to join this DoT-supported consortium. Holo-core fiber will be revolutionary for next-generation communication networks. We will provide industry knowledge, manufacturing expertise and practical implementation.” This project will reduce India’s dependence on imported optical technology and strengthen indigenous 6G preparedness.
Company policies, financial situation, loans and regional challenges
HFCL is active in optical fibre cables (OFC), telecom equipment, defence electronics and network solutions. The company’s strategy mainly focuses on ‘product-led growth’ – boosting exports, investing in R&D and expanding in the defence sector. They recently raised ₹550 crore through a QIP, which will be used for capacity expansion, R&D, debt reduction and working capital.
Financial situation (Q3 FY26, up to December 2025):
- Revenue: ₹1,210.79 crore (YoY +19.65%).
- EBITDA: ₹243.52 crore (YoY +41.67%, margin 20.11%).
- Profit (PAT): ₹102.37 crore (YoY +41%).
- Order book: ₹11,125 crore (up from ₹9,981 crore in Q2).
- 9-month revenue: ₹3,125 crore (improvement is visible).
Loan Term:
Long-term loans around ₹390 crore (likely to increase in FY25), Debt-to-Equity ratio 0.29-0.38 (lower than the sector), but Net Debt/EBITDA had earlier gone up to 4.85x. Interest expenses have risen (₹60.90 crore in Q3), but there is a plan to reduce debt through QIP.
Regional challenges:
- Fluctuations in optical fiber demand (due to telecom companies’ capex cuts).
- Fluctuations in raw material prices (silica, others).
- Intense competition (Starlight Technologies, Birla Cables).
- High working capital (214 days).
- Supply chain issues and export rules
However, there are long-term opportunities due to the PLI scheme, 5G/6G push, defence orders and export growth (27% revenue in Q3).
What do Wall Street analysts and top brokers say? HFCL share target price
HFCL’s valuation on Wall Street is mixed. High PE (170+) and profit volatility have led some brokers to give a ‘Strong Sell’ rating. However, order book, exports, and new technology make some positive.
- TradingView (an analyst): 12-month target ₹146 (110% upside from current price).
- Bitget/Other: Average target ₹148.89, high ₹205, low ₹81.
- Axis Securities (December 2025): 126% upside (in the old report).
- MarketsMojo: ‘Strong Sell’ – profit drop, high valuation and credit rating downgrade (CARE A-).
- Overall consensus (41 analysts): Strong Sell/Neutral – because P/E is above the three-year average, profit margin under pressure.
Top brokers (ICICI, HDFC Sec.) are currently advising ‘Hold’ or ‘Buy on dips’, especially around the support of ₹65-68. A long-term (1-2 years) target of ₹120-150 is possible if order execution and HCF are successful.
Conclusion:
HFCL is currently in a transitional phase – despite challenges in the traditional OFC business, the company is getting stronger thanks to future technologies like defence, exports, and holo-core fibre. Investors should keep an eye on Q4 FY26 results and consortium progress. Since the stock trades with high volatility, invest with proper risk management.
Disclaimer:
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