HFCL Secures ₹656 Crore Export Orders for Optical Fiber Cables; Stock Drops 2% Despite Major Win

Telecom equipment manufacturer HFCL Ltd has announced a significant export order win worth $72.96 million (₹656.10 crore) for the supply of optical fibre cables. The company announced on Saturday (December 6), confirming that the orders were received through its overseas wholly owned subsidiary from an international client.

The large-scale order marks another milestone in HFCL’s growing export portfolio. However, despite the development, the company’s stock ended lower at ₹68.90, down by ₹1.52 or 2.16%, on the BSE on Friday (December 5).

₹656 Crore Orders Secured Through Global Subsidiary

According to HFCL’s disclosure, the export orders have been placed by an international customer, routed through its overseas subsidiary. The orders are governed by general contract conditions, and HFCL will be responsible for supplying optical fibre cables as per the customer’s specifications.

The company has also confirmed that the execution timeline for fulfilling these orders will extend until November 2026, giving HFCL a multi-year revenue pipeline from this project.

HFCL did not disclose the buyer’s name but emphasised that the orders were strictly for cable supply under standard contractual guidelines.

HFCL Stock Ends Lower Despite Order Win

The market did not immediately react positively to the large export deal. On Friday, HFCL shares closed at
₹68.90, registering a fall of:

• ₹1.52 decline

• 2.16% drop

This came even as broader markets tracked a mixed sentiment, with several midcap and telecom-linked stocks moving in narrow ranges.

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HFCL’s Business Performance: Q2FY25 Earnings Snapshot

Alongside the new order announcement, HFCL’s recent quarterly performance paints a mixed picture.

The company reported an 8.24% year-on-year decline in net profit for the second quarter ended September 30, 2025, with profit falling to ₹67.9 crore compared to ₹74 crore in the same period last year.

Revenue Performance

HFCL recorded:

• ₹1,043 crore revenue in Q2FY25

• Down 4.6% YoY from ₹1,093 crore

• Up 19.8% sequentially from ₹871 crore in Q1

While YoY revenue dipped, the strong sequential growth indicates improving demand and higher execution volumes compared to the previous quarter.

EBITDA & Margin Expansion

HFCL reported a healthy improvement in operating performance:

• EBITDA: ₹190 crore

• Growth: 19.9% YoY

• EBITDA Margin: Improved to 18.2%

• Up from 14.5% in the previous year

• Margin expansion: +370 basis points

This suggests better operational efficiency even as revenue saw a mild decline versus last year.

Previous Financial Performance: Q1FY26 Recap

Earlier, HFCL had reported a ₹32 crore net loss in Q1FY26, citing pressure on revenue and margins. The Q2 recovery in both EBITDA and sequential revenue highlights the company’s efforts toward improving operational metrics.

Key Market Movements (As on December 5, 2025)

On the same day HFCL’s stock closed lower, broader markets witnessed volatility. Some notable gainers included:

• Diamond Power Infrastructure: ₹144.32 (up ₹144.11 or 70300%)

• Kesoram Industries: ₹6.54 (up 20%)

• Arvee Laboratories: ₹197.48 (up 19.96%)

• Rollatainers: ₹1.37 (up 19.13%)

• Keynote Financial Services: ₹338.85 (up 19.10%)

This reflects strong momentum in select small-cap and mid-cap counters.

Industry Context Mentioned in Related Sections

Alongside HFCL’s announcement, several other industry updates were highlighted in related coverage, including:

• NBCC India is selling 175 residential units worth ₹485 crore in Greater Noida through e-auction.

• IndiGo’s operational turmoil, with the airline cancelling over 400 flights on December 6.

• New data spotlighting the gender gap in life insurance adoption in India.

These parallel developments indicate heightened activity across sectors, from telecom and infrastructure to aviation.

HFCL’s Order Execution Timeline Through FY26

The newly won ₹656 crore optical fibre cable orders will be executed until November 2026. This multi-year execution period ensures:

• Stable order visibility

• Sustained capacity utilisation

• Opportunities for revenue realisation over multiple quarters

The company reaffirmed that the cables will be supplied strictly based on customer specifications and within standard contractual conditions.

What’s Next for HFCL?

While the article highlights no forward-looking statements from management, the combination of:

• A major export order

• Strengthened EBITDA performance

• Sequential revenue growth

positions the company for sustained operational activity into FY26.

The decline in share price despite the order win reflects market caution, possibly influenced by broader sectoral movements or recent quarterly profit declines.

Conclusion

HFCL’s ₹656 crore export order win marks a strong addition to its international business pipeline. The project, extending through November 2026, reinforces HFCL’s capabilities in delivering optical fibre solutions to global clients.

Even as the stock recorded a slight decline, the company’s improving operational metrics—most notably a 370 bps margin expansion and strong sequential revenue growth—provide a noteworthy backdrop to the order announcement.

With steady multi-quarter execution ahead, HFCL is positioned for sustained activity in its telecom infrastructure business over the next several quarters.

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