Telecom Stock Jumps 4% After Receiving ₹10,159 Cr Order to Supply Optical Fiber Cables

Synopsis: A small-cap telecom equipment company with a 5-year return CAGR of 21 percent jumped after securing a Rs 10,159 crore global optical fiber cable supply agreement, significantly strengthening its international telecom infrastructure presence.

A small-cap stock engaged in telecom equipment manufacturing and optical fiber cable solutions surged after announcing a massive global supply contract. The company currently holds an order book worth Rs 11,125 crore, reflecting strong project momentum across products, network services, and operations. 

With a market cap of about Rs 11,400 Cr, HFCL Ltd saw its stock hit an intraday high of Rs 77 which is 4 percent higher than the previous close of Rs 74. The company stock has given a compounded return of 21 percent in the last five years, while the three year number is at 5 percent.

What’s the News?

HFCL Limited has entered a historic five-year agreement with a global multinational to supply high-fiber-count Optical Fiber Cables. Valued at approximately $1.10 billion or Rs 10,159 crore, the contract runs through December 2030. This milestone deal, executed via an overseas subsidiary, significantly strengthens HFCL’s competitive global market positioning.

Order book and Order Book Mix

The total order book value reached Rs 11,125 crores in Q3FY26. This represents a 11 percent growth from the Q2FY26 value of Rs 9,981 crores, reflecting strong momentum in the company’s project pipeline.

The company’s order book is diversified across three primary categories: Products lead with Rs 4,568 crores, followed by O&M at Rs 3,522 crores and Network Services at Rs 3,035 crores. From a customer perspective, the mix is heavily weighted toward the Government sector with Rs 7,743 crores orders compared to Private clients orders of Rs 3,382 crores.

Business & Financial Overview

HFCL Ltd is a leading Indian technology enterprise specializing in high-end telecom equipment, optical fiber cables, and integrated communication solutions. The company serves global markets across telecom, defense, and railway sectors. HFCL maintains a robust, diverse client base across multiple continents/

In India, it serves major operators and public institutions like Jio, Airtel, Vodafone Idea, RailTel, ONGC, BHEL, and L&T. Internationally, its reach spans the UK, Europe, Middle East, and Africa, partnering with prominent providers like Ooredoo, Etisalat (e&), Zain, and Optus.

In the latest quarter the company saw a YoY revenue growth of 20 percent, going from Rs 1,012 Cr in Q3FY25 to Rs 1,211 Cr in Q3FY26, while the QoQ went up by 16 percent from Rs 1,043 Cr in Q2FY26. The YoY Net Profits growth is at 40 percent, going from Rs 73 Cr in Q3FY25 to Rs 102 Cr in Q3FY26, while the QoQ growth stood at 42 percent from Rs 72 Cr in Q2FY26.

The company has a 3 year sales CAGR of negative 5 percent, while the TTM is at a negative 14 percent. The company’s 3 year profit CAGR is at negative 18 percent, while the TTM number is at negative 86 percent. The company also has a ROCE of 7.5 percent and a ROE of 4.4 percent.

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