HFCL Limited (HFCL) AI Stock Analysis

• Market Cap: ₹111.01B
• Dividend Yield: 0.13%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 398.5
• Beta (1Y): 1.62
• Revenue Growth: -19.16%
• EPS Growth: -92.64%
• Country: IN
• Employees: 2,114
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.47
• Shares Outstanding: 1,442,672,900
• 10 Day Avg. Volume: 1,557,863
• 30 Day Avg. Volume: 1,945,886
• PEG Ratio: -1.39
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 2.87
• P/FCF Ratio: 70.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹77.00 ▲(2.84% Upside)

The overall stock score is primarily influenced by solid financial performance, with stable revenues and profitability. However, technical indicators suggest moderate momentum, and the valuation appears stretched due to a high P/E ratio and low dividend yield. These factors collectively result in a cautious outlook.

HFCL Limited Business Overview & Revenue Model

Company Description

HFCL Limited manufactures and sells telecom products in India and internationally. The company operates through Telecom Products and Turnkey Contracts and Services segments. It offers a range of optical fiber cables, such as aerial, armoured, Fiber-to-Anywhere (FTTx), micro, and unarmoured cables; microwave solutions, including packet microwave, hybrid microwave, and small cell radio solutions, as well as network management systems; and gigabit passive optical network systems, including optical line terminals (OLT), mini OLT, and optical network terminals. The company also provides power electronic solutions, including AC and DC power, network integrated control and monitoring, and power racks passive telecom infrastructure; battery management systems; and solar solutions comprising hybrid DC power systems, off grid solar plants, solar water pumps, and MPPT based solar charge controllers. In addition, it offers telecom network solutions, including in-building system, optical fiber cable network, optical transmission solutions, as well as fiber solutions to the home, building, premises, and curb. Further, the company provides network design, equipment supply, installation and commissioning, network integration, and post deployment warranty and AMC support for metro lines, mainline railways, and railway freight corridors; and various solutions consisting of communication/IT/telecom infrastructure, data center, disaster recovery and management, security, surveillance, traffic management, and citizen/mobile applications, as well as power, water, waste, and other utility management. It has a collaboration agreement with Qualcomm Technologies, Inc. for the design and development of 5G millimeter wave FWA and CPE products. It serves telecom, security, and railway sectors. The company was formerly known as Himachal Futuristic Communications Limited and changed its name to HFCL Limited in October 2019. HFCL Limited was incorporated in 1987 and is based in New Delhi, India.

How the Company Makes Money

HFCL generates revenue through multiple key streams, primarily from the sale of telecommunications equipment and solutions. Their core revenue comes from manufacturing and supplying optical fiber cables, broadband equipment, and wireless communication devices to telecom operators, infrastructure providers, and large enterprises. In addition to product sales, HFCL also earns income from providing installation, maintenance, and support services for its products. Strategic partnerships with major telecom operators and government initiatives focused on digital connectivity further bolster its revenue potential. The company's involvement in projects related to smart cities, 5G rollout, and digital India initiatives also contributes significantly to its earnings, as these sectors require advanced communication infrastructure.

HFCL Limited Financial Statement Overview

Summary

HFCL Limited demonstrates strong operational and financial fundamentals with stable revenues and profitability margins. The balance sheet reflects a moderate reliance on debt, supported by a solid equity base. However, cash flow volatility presents potential challenges, despite recent improvements in free cash flow.

Income Statement

The company shows a stable revenue base with minor fluctuations in revenue growth. The gross profit margin remains robust, indicating effective cost management. However, the net profit margin has seen a decline over the latest period, suggesting challenges in managing expenses or increased competition affecting pricing power. EBIT and EBITDA margins are healthy, showcasing efficient operational management.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity (ROE) is decent but has shown variability, suggesting fluctuating profitability. The equity ratio indicates a solid foundation of equity financing, which provides stability in economic downturns.

Cash Flow

The cash flow situation presents a mixed picture. The company achieved a positive free cash flow in the latest period after a negative trend, indicating improved cash management. However, the operating cash flow to net income ratio reflects some inconsistency, suggesting operational cash generation may be volatile.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.77B	40.65B	44.65B	47.43B	47.27B	44.23B
Gross Profit	10.04B	11.07B	12.39B	12.57B	12.23B	10.14B
EBITDA	2.74B	4.10B	5.68B	6.05B	6.57B	5.44B
Net Income	338.70M	1.77B	3.30B	3.01B	3.13B	2.39B
Balance Sheet
Total Assets	0.00	75.46B	64.87B	54.73B	51.71B	52.16B
Cash, Cash Equivalents and Short-Term Investments	4.93B	4.93B	3.42B	3.35B	2.50B	242.90M
Total Debt	0.00	15.22B	9.91B	9.36B	7.83B	9.42B
Total Liabilities	-41.19B	34.27B	24.87B	23.28B	23.53B	32.92B
Stockholders Equity	41.19B	40.79B	39.56B	31.08B	27.98B	19.16B
Cash Flow
Free Cash Flow	0.00	1.66B	-4.55B	-1.05B	228.10M	-492.50M
Operating Cash Flow	0.00	3.96B	-448.80M	2.36B	2.06B	568.20M
Investing Cash Flow	0.00	-5.18B	-4.49B	-446.30M	-4.58B	-769.40M
Financing Cash Flow	0.00	1.70B	4.54B	-1.45B	2.48B	249.80M

HFCL Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.87
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HFCL, the sentiment is Negative. The current price of 74.87 is below the 20-day moving average (MA) of 76.07, above the 50-day MA of 74.26, and below the 200-day MA of 81.64, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 39.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HFCL.

HFCL Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PARACABLES	67 Neutral	₹13.09B	16.30	―	―	44.41%	-23.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASTRAMICRO	56 Neutral	₹100.63B	61.89	―	0.21%	17.79%	20.42%
HFCL	56 Neutral	₹111.01B	398.50	―	0.13%	-19.16%	-92.64%
TEJASNET	54 Neutral	₹92.42B	―	―	0.48%	-17.23%	-185.73%
STLTECH	52 Neutral	₹55.95B	―	―	―	-14.27%	78.52%
AKSHOPTFBR	45 Neutral	₹1.22B	-4.53	―	―	-29.38%	73.60%

HFCL Limited Corporate Events

HFCL Limited Updates Stake Sale Timeline in Nivetti Systems

HFCL Limited has announced an update regarding the sale of its entire stake, consisting of 217,594 equity shares, in Nivetti Systems Private Limited. The completion of this transaction, initially scheduled for October 15, 2025, has now been postponed to December 15, 2025, following an addendum to the Share Purchase Agreement with Trinity Tech Solutions. This strategic move may impact HFCL’s financial positioning and stakeholder interests, as it adjusts its investment portfolio.

HFCL Limited Confirms Regulatory Compliance for Q3 2025

HFCL Limited, a company involved in the telecommunications and technology sector, has announced its compliance with Regulation 74(5) of the SEBI (Depository and Participants) Regulations, 2018 for the quarter ending September 30, 2025. The company confirmed that all securities received for dematerialization during this period were processed appropriately, listed on stock exchanges, and updated in their records, ensuring regulatory compliance and maintaining transparency with stakeholders.

HFCL Limited Receives ESG Rating of 73 from CFC Finlease

HFCL Limited has received an ESG rating of 73 from CFC Finlease Private Limited, reflecting its dedication to sustainable growth, environmental stewardship, and social responsibility. This independent assessment, based on publicly available data, underscores HFCL’s commitment to sound corporate governance and positions the company favorably in the market.

HFCL Limited Secures USD 40.65 Million Export Order for Optical Fiber Cables

HFCL Limited has announced securing export orders worth approximately USD 40.65 million for the supply of optical fiber cables through its overseas subsidiary. This significant order highlights the trust international customers place in HFCL’s manufacturing capabilities and product quality, reinforcing its position in the global telecommunications market.

HFCL Limited Updates Stakeholders on Revised Record Dates

HFCL Limited announced the publication of a newspaper advertisement detailing the revised Record Date, Cut-off Date, and Book Closure Period. This update, published in prominent newspapers like The Indian Express and Divya Himachal, is part of the company’s compliance with SEBI Listing Regulations, ensuring transparency and timely communication with stakeholders.

HFCL Limited Faces Credit Rating Downgrade

HFCL Limited announced a revision in its credit ratings by CARE Ratings Limited for both long-term and short-term bank facilities. The ratings have been downgraded based on recent developments, including the company’s audited financial performance for FY25 and unaudited results for Q1FY26. This revision may impact HFCL’s financial operations and its positioning in the telecommunications market, potentially affecting stakeholder confidence.

HFCL’s Subsidiary Secures INR 101.82 Crore Contract with Indian Army

HTL Limited, a subsidiary of HFCL Limited, has secured a contract worth approximately INR 101.82 crore from the Indian Army for the supply of Tactical Optical Fiber Cable and related accessories. This contract highlights the company’s capability to deliver indigenously manufactured, high-grade military communication solutions that are lightweight, portable, and designed for rapid deployment in challenging environments, thereby enhancing its position in the defense sector.

HFCL Limited Announces 38th AGM Details and Voting Procedures

HFCL Limited has announced the publication of a newspaper advertisement regarding its 38th Annual General Meeting (AGM). The meeting is scheduled for September 15, 2025, and will be conducted via video conferencing. The announcement includes details about electronic voting facilities, book closure period, cut-off date for voting eligibility, and the record date for dividend entitlement. The company has also completed the dispatch of the annual report for the financial year 2024-25 to its shareholders. This move is part of HFCL’s compliance with SEBI Listing Regulations, ensuring transparency and engagement with its stakeholders.

HFCL Limited Urges Shareholders to Update PAN and KYC Details

HFCL Limited has announced that shareholders holding shares in physical form must furnish their PAN, KYC, and nomination details to comply with SEBI regulations. This move is part of a broader regulatory effort to ensure transparency and efficiency in shareholder records, impacting shareholders by requiring them to update their information to continue receiving dividends and other services.

HFCL Limited Announces Upcoming Annual General Meeting

HFCL Limited has announced the publication of a public notice in various newspapers regarding its upcoming Annual General Meeting scheduled for September 15, 2025. This announcement, made in compliance with SEBI Listing Regulations, aims to inform stakeholders and ensure transparency in the company’s operations, highlighting its commitment to regulatory adherence and stakeholder communication.