Why HFCL Share Price is Falling

The Indian stock market is trading positively today close to its all-time high. The Nifty was around 26,200 at the time of writing.

Many stocks and sectors have been rising along with the market but there have been notable exceptions. In fact, some stocks have been falling in a rising market. HFCL is one of them.

In this editorial, we will cover HFCL Ltd. The stock has been in a downtrend since September 2024. It has seen renewed selling pressure recently hitting a 52-week low today.

What's driving the stock down?

Read on...

Turnaround and Growth

Investors have been worried about the company's growth for a long time.

After FY22, the financial performance has been tepid. Neither the topline nor the bottomline showed much improvement for the next two years.

Then in FY25, both the revenue and profits dropped. In fact, the net profit almost halved.

The expectation was that the performance would steadily improve in FY26 on the back of decent order wins by the company.

While the June 2025 quarter's performance was disappointing, the market was expecting a turnaround in the September quarter. The company did swing back to profitability but the overall numbers were muted on a year-on-year (YoY) basis.

The order book was also flat (marginally down) YoY Rs 99.81 billion (bn) vs 104.8 bn.

The recent selling indicates that many investors may not be comfortable with the growth outlook. The concern is that the high growth phase anticipated by the management, after the turnaround, could be pushed into FY27.

What Next for HFCL?

In the telecom sector, HFCL is developing global variants of Wi-Fi 6 and Wi-Fi 7 access point versions, a new 4 Gbps (gigabits per second) unlicensed band radio, variants of internet protocol and multiprotocol label switching routers, and outdoor fixed wireless access customer premises equipment.

It's also reducing dependence on external suppliers for the manufacturing of optical fiber cables.

The company plans to more than double its optical fiber capacity from the current 14 million fibre kilometers (m fkm) per annum to 33.9 m fkm per annum. Optical fiber capacity is expected to expand from 25 m fkm to 35 m fkm per annum.

In the defence segment, the company is developing software-defined radios, drone detection radars, and multi-mode hand grenades.

HFCL also provides optical fiber networking equipment and solutions to the data center and artificial infrastructure industries. It's well-positioned to capitalise on this opportunity given its capacity expansion. The company expects strong demand and better margins from the data center business.

How shares of HFCL have performed recently

HFCL's shares were trading at Rs 68.48 on 5 December 2025, at the time of writing. In the last one month, the stock is down 8.2%.

Over the last one year, the stock is down 47%.

The stock touched its 52-week high of Rs 134.8 on 6 December 2024 and its 52-week low of Rs 67.49 on 5 December 2025.

HFCL Share Price - 1 Month

About HFCL

HFCL operates in three high-growth areas: telecommunications, defence, and systems integration.

In the telecommunications sector, the company manufactures and supplies optical fiber cables, telecommunications and networking products, as well as passive connectivity solutions.

In the defence sector, it supplies ground and coastal surveillance radars, electro-optics, electronic fuses, tactical cables, and wire harnesses.

Additionally, it executes and maintains large-scale telecommunication and defence communication projects in system integration.

To know more, check out HFCL's fact sheet and quarterly results. You can also compare HFCL with its peers on our website.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...