HFCL shares continued their sharp rally on Tuesday, October 6, extending gains for the fifth consecutive session as the telecom equipment and optical fibre cable maker hit another 5% upper circuit. The stock also scaled a fresh 52-week high, extending its strong run in 2026 despite a weak broader market.
HFCL shares opened at ₹262 on the BSE before hitting the 5% upper circuit at ₹262.25, which also marked a new 52-week high. The stock has now surged more than 338% from its 52-week low of ₹59.83, recorded in January 2026.
The multibagger stock has gained 21.5% in one week, 13.5% in one month, 17% in three months, 260.5% in six months and 253% over the past year.
HFCL, which manufactures and deploys telecommunications equipment, optical fibre cables (OFCs) and advanced digital network solutions, has significantly outperformed the broader market in 2026. The stock has delivered a multibagger return of 245% so far this year, while the Nifty 50 has fallen nearly 15% during the same period.
Why are HFCL shares rising?
The recent rally comes against the backdrop of a sharp improvement in the company’s financial performance and a record order book.
HFCL returned to profitability in Q1FY27, reporting a net profit of ₹245.64 crore compared with a net loss of ₹29.30 crore in Q1FY26. Revenue more than doubled to ₹1,914.98 crore during the quarter.
The company also ended the first quarter with its highest-ever order book of ₹26,665 crore, which was nearly five times its FY26 revenue. The strong order pipeline has emerged as an important factor in the company’s growth outlook.
However, the sharp rise has also brought the stock under regulatory surveillance. Exchanges have placed HFCL under Long-Term Additional Surveillance Measure Stage 4 (LT ASM-4), a framework used to monitor stocks witnessing abnormal price volatility, high concentration or heavy speculation.
Another recent development relates to HFCL’s proposed sale of its entire stake in Nivetti Systems Private Limited.
HFCL had previously announced the proposed sale of its entire holding of 2,17,594 equity shares in Nivetti Systems under a Share Purchase Agreement entered into with Trinity Tech Solutions and Nivetti Systems.
The transaction was earlier scheduled to be completed by September 30, 2026. However, an addendum to the SPA was executed on October 1, and the completion deadline has now been extended to on or before December 31, 2026.
The company said the other points disclosed in its earlier regulatory filings remain unchanged. The latest disclosure did not provide any revised transaction value or additional financial details.
HFCL technical outlook: Can the rally continue?
HFCL’s technical setup has also strengthened following the latest breakout. Hitesh Tailor, Technical Research Analyst at Choice Broking, said the stock was trading around ₹262.80 after scaling fresh all-time highs with a strong 5% intraday move.
According to Tailor, HFCL decisively broke above its previous double-top resistance zone of ₹255- ₹256. The subsequent retest of this breakout zone attracted strong buying, indicating that the earlier resistance had turned into support and reinforcing the stock’s broader higher-high, higher-low structure.
“The immediate downside support now shifts to the ₹250– ₹255 zone. On the upside, HFCL enters a price discovery phase, with immediate resistance and target projections located at ₹273.30 (1.236 Fib extension) and ₹292.90 (1.50 Fib extension), followed by the major extension target near ₹301.65.”
Tailor added that momentum indicators were supporting the ongoing rally. The daily RSI had climbed to 67.88, indicating strong upward momentum while remaining below extreme overbought territory.
With the stock entering a price discovery phase after hitting a fresh high, the ₹250- ₹255 zone will remain the immediate support area to watch. On the upside, the technical projections stand at ₹273.30, ₹292.90 and the major extension target of ₹301.65.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
