HFCL share price surges 3.6% as company secures 5-year work order worth ₹10,159 crore; details to know

The stock of the company advanced as much as 3.66% to hit a high of ₹77.20 on the NSE. Last seen, shares were trading 1.45% higher at ₹75.55 apiece on the NSE.

In its filing to stock exchanges, HFCL said it has entered into a five-year supply agreement with a customer for the supply of high-quality, high-fibre-count Optical Fibre Cables (OFC) through its overseas, wholly owned subsidiary.

The company said the total potential value of the contract over its tenure is estimated at nearly $1.10 billion, equivalent to around ₹10,159 crore, based on prevailing selling prices of OFC products being supplied.

HFCL added that this agreement marks a significant milestone, being the first instance in the company’s history of entering into a long-term, multi-year OFC supply arrangement of this nature.

(i)A minimum quantity of multi-million fibre kilometres (fkm) of high-quality, high-fibre-count OFC is to be supplied in each calendar year (CY) starting from CY26 to CY28, which shall automatically extend to two additional calendar years, i.e., CY29 and CY30;

ii) Purchase orders will be released periodically during the contract period based on project-wise and specification-wise requirements;

iii) Under the terms of the agreement, the wholly owned subsidiary is also eligible.

About HFCL

HFCL (Himachal Futuristic Communication Limited) is an India-based technology company focused on building next-generation communication and networking solutions. It specialises in the manufacturing of telecom products and optical fibre cable. HFCL also offers basic telephony and ISP services.

HFCL operates across telecom equipment, optical fibre cable, defence electronics, and turnkey EPC services. The company is known for its strong R&D capabilities and played a role in India's 5G rollout and broadband expansion.

HFCL has five manufacturing facilities in India, two each in Telangana and Tamil Nadu, and one in Goa. It caters to customers in more than 30 countries.

History of HFCL Limited

HFCL Limited was established in 1987 and began its journey as a manufacturer of telecom equipment during India’s early telecom expansion phase.

It became one of the pioneers in the new-age telecom sector in India, establishing one of India’s first private telecom companies.

In 1995, the company’s ₹85,000 crore bid for the basic service telecom licence in India. It played a crucial role in driving the growth of the country’s telecom industry.