Shares of HFCL Ltd gained around 5 percent after the company secured a Rs. 2,666.09 crore contract from Rail Vikas Nigam Limited (RVNL) for the BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle.
The order further strengthens HFCL’s position in India’s broadband infrastructure buildout and adds to its multi-year execution pipeline.
With a market capitalisation of around Rs. 29,900 crore, the stock was trading near Rs. 190, up about 5 percent from the previous close. The company trades at a P/E ratio of around 96 times.
Rs. 2,666 Crore Order From RVNL
According to the company, the contract covers multiple components of the BharatNet Phase-III project.
Scope of work
- Supply of telecom equipment and accessories.
- Installation and commissioning.
- Creation of an Optical Fiber Cable (OFC) telecom network.
- Operations and maintenance for 10 years.
- One-year warranty support.
Order breakup
| Component | Value |
|---|---|
| Capex | Rs. 1,192.82 crore |
| Opex | Rs. 1,473.27 crore |
| Total | Rs. 2,666.09 crore |
The project has:
- A two-year implementation period.
- A 10-year operations and maintenance (O&M) commitment.
The long-term O&M portion provides recurring revenue visibility over the next decade.
Builds On Earlier BharatNet Wins
The latest order comes in addition to a previous Rs. 2,167.65 crore contract awarded by RVNL.
That order, announced in January 2025, covered BharatNet Phase-III projects in the Uttar Pradesh East and West telecom circles.
With these contracts, HFCL has emerged as one of the major execution partners for BharatNet in Uttar Pradesh.
Order Book Strengthens Further
Before the latest order, HFCL’s order book stood at Rs. 21,206 crore.
Segment-wise order book
- Networks: Rs. 14,586 crore
- Products: Rs. 3,508 crore
- Operations and Maintenance: Rs. 3,112 crore
The company has been focusing on increasing the contribution from products and recurring services while maintaining its network execution business.
FY26 Financial Performance
HFCL reported higher revenue and profit during FY26.
FY26 vs FY25
| Particulars | FY26 | FY25 |
|---|---|---|
| Revenue from operations | Rs. 4,949.27 crore | Rs. 4,064.52 crore |
| Net profit | Rs. 311.74 crore | Rs. 177.41 crore |
Net profit attributable to shareholders increased significantly compared with the previous year.
About HFCL
HFCL Ltd is a diversified telecom technology company headquartered in Himachal Pradesh.
The company is engaged in:
Products
- Optical fibre cables.
- Telecom equipment.
- Defence products.
Services
- Turnkey telecom projects.
- Network deployment.
- Operations and maintenance services.
HFCL operates through subsidiaries and joint ventures in India and overseas markets.
Focus on Rural Connectivity
The BharatNet programme aims to expand broadband connectivity across rural India through optical fibre infrastructure.
The latest contract adds substantially to HFCL’s execution pipeline and reinforces its role in the government’s digital connectivity initiatives.
TL;DR
HFCL shares rose 5% after the company secured a Rs. 2,666.09 crore BharatNet Phase-III contract from RVNL. The project includes network deployment and a 10-year O&M component, adding to the company’s long-term revenue visibility.
AI Summary
- HFCL won a Rs. 2,666.09 crore BharatNet Phase-III order from RVNL.
- The project includes a 10-year operations and maintenance commitment.
- Capex component stands at Rs. 1,192.82 crore.
- Opex component amounts to Rs. 1,473.27 crore.
- HFCL’s order book stood at Rs. 21,206 crore before this order.
