HFCL gains 4.5% on approval for defence manufacturing facilities in Andhra Pradesh

HFCL shares surged over 4% on Friday, September 12, after the State Investment Promotion Board approved the acquisition of 1,000 acres of land in Andhra Pradesh for establishing defence manufacturing facilities.

The Andhra Pradesh Industries and Commerce Department announced that the State Investment Promotion Board has approved the company’s proposal to acquire 1,000 acres of land in Madakasira Mandal, Sri Sathya Sai District, for the establishment of defence manufacturing facilities.

In the first phase, the Andhra Pradesh Industrial Infrastructure Corporation Limited (APIICL) will give 329 acres. Further, in the next phase, another 671 acres will be allotted.

The proposed facilities will manufacture artillery shells, TNT-filled munitions, multi-mode hand grenades, and other defence products, aligning with the company’s strategy to expand its presence in the defence sector.

Following the announcement, shares of HFCL climbed 4.52% to touch an intraday high of ₹73.46 apiece on the National Stock Exchange (NSE). The stock opened at ₹71.10, up from the previous close of ₹70.28.

At 1:10 PM, the scrip was trading 4.44% higher at ₹73.40 apiece. The company’s market capitalisation is ₹10,515.64 crore.

Over the last five days, shares of HFCL have surged 4.68%. The scrip has advanced 1.82% in the last month. On the other hand, HFCL shares have significantly declined 7.36% in the last 6 months and nearly 35.71 on an YTD basis.

The stock touched its 52 week high of ₹171.00 on September 23, 2024 and its 52 week low of ₹68.56 on August 29, 2025.

HFCL Q1 results:

HFCL had reported a consolidated net loss of ₹32.24 crore in the Q1FY26 compared to a profit of ₹111.30 crore in the corresponding period a year earlier.

The fall in profit came on the back of a 25% year-on-year (YoY) decline in its revenue from operations to ₹871.02 crore during the quarter under review, as against ₹1,158.24 crore in the June quarter of FY25. Sequentially, however, HFCL’s revenue from operations increased 8.78% quarter-on-quarter (QoQ) from ₹800.72 crore in the fourth quarter of FY25, the company said in a regulatory filing.

The tech company’s revenue from its telecom products segment fell 18.76% YoY to ₹577.91 crore in the quarter, as compared to ₹711.36 crore in the same period a year earlier. The turnkey contracts and services segment contributed ₹293.11 crore to its revenue, down 34.34% YoY from ₹446.38 crore in Q1FY25.

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation) stood at ₹29 crore, falling 83% from ₹174 crore in the year-ago period. Its EBITDA margin contracted to 3.3%, as against 15% in Q1FY25.