HFCL share price has been on a strong uptrend of late. The stock has surged over 260% in the last six months on the BSE. On Tuesday, 8 September, HFCL shares jumped 5% to hit an intraday high of ₹255, just a whisker below its upper circuit of ₹255.05. Notably, the stock hit its 5% upper circuit in its previous two consecutive sessions. In three consecutive sessions, including Tuesday’s intraday high, the stock has climbed nearly 16%.
The stock hit a 52-week high of ₹257 on 31 August after hitting a 52-week low of ₹59.83 on 23 January this year.
Why is HFCL share price rising?
HFCL operates in the defence, railways, and telecom sectors. It designs and integrates end-to-end digital network solutions for high-speed, secure voice and data transmission.
The recent sharp rise in the stock price could be attributed to sectoral tailwinds, the company’s healthy financial performance, and its healthy order book.
On 1 September, the company said it entered into a long-term supply agreement with a customer for the supply of optical fibre cables (OFC), worth nearly ₹2,329 crore. On June 17, HFCL announced that it had secured a ₹2,666.09 crore contract from Rail Vikas Nigam (RVNL) for the BharatNet Phase-3 project in the Uttar Pradesh (West) telecom circle.
HFCL’s total income in FY26 stood at ₹5,014.52 crore, up 21.6% from ₹4,122.28 crore in FY25. Its profit after tax (PAT) for the year surged 90.1% to ₹329.44 crore from ₹173.26 crore in FY25.
EBITDA jumped 63.15% year-on-year to ₹826.75 crore from ₹506.75 crore in the previous year, while EBITDA margin jumped to 16.70% in FY26 from 12.47% in FY25.
The fresh buzz in the stock could also be due to investor interest ahead of the dividend record date for FY26.
HFCL dividend record date
HFCL has fixed September 22 as the record date for the dividend payment for FY26.
The company’s board of directors recommended a final dividend at20%, i.e., ₹0.20 per equity share of face value ₹1 each for FY26, subject to the approval of the shareholders of the company at the ensuing annual general meeting (AGM).
The AGM for the financial year 2025-26 is scheduled to be held on Tuesday, 29 September 2026.
What should investors do?
According to Vipin Kumar, AVP-Research at Globe Capital Market, the stock has witnessed a vertical rise from ₹60 to ₹252 over the past eight months, forming higher highs and higher lows while holding strongly above both its short-term and long-term moving averages.
“Given such a sharp rally, the possibility of some profit-taking at this juncture cannot be ruled out. However, considering its bullish chart structure, we advise traders to maintain a ‘buy-on-dips’ strategy, viewing any decline toward the ₹230– ₹210 zone as a fresh buying opportunity,” said Kumar.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, HFCL is showing signs of caution after its recent up move.
“Multiple bearish divergences suggest that price momentum is weakening, even if the stock continues to trade at higher levels. This suggests the rally may be losing momentum, and that fresh buying at current levels could entail greater risk. ₹232 is the major support, while ₹257 is the key resistance to watch,” said Patel.
“A sustained move above ₹257 would be required to improve the outlook and signal renewed buying strength. Until then, existing investors should consider locking in profits, while fresh longs should be avoided. A decisive break below ₹232 would weaken the structure further and may trigger additional selling pressure. Traders should monitor price action around these levels before taking any fresh position,” said Patel.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
