HFCL Share Price Rally 150% in 40 Trading Sessions – Here is Why

Shares of HFCL continued their strong rally on Tuesday, May 26, rising another 1% and extending gains for the fifth consecutive trading session. The stock had earlier snapped a four-day losing streak last Wednesday and has now surged 150% from its March 30 low of ₹66.20.

The sharp rally has made HFCL one of the standout performers in the market. The stock has gained 42% in May alone after witnessing a massive 71% jump in April. On Tuesday, the stock was trading 1.14% higher at ₹164.66 and has rallied 67% over the last one month.

HFCL March Quarter Earnings Drive Investor Optimism

Investor sentiment around HFCL strengthened significantly after the company reported a sharp improvement in its March quarter performance earlier this month.

The company’s revenue more than doubled on a year-on-year basis, rising 127.8%. On a sequential basis as well, revenue increased 51%, indicating strong business momentum across segments.

HFCL reported EBITDA of ₹337 crore during the quarter, compared to an EBITDA loss of ₹22 crore in the same period last year. EBITDA margins also improved sharply to 18.5%.

The company returned to profitability with a net profit of ₹184.5 crore, compared to a net loss of ₹83.3 crore in the corresponding quarter last year.

Ambitious FY29 Targets Support Long-Term Growth Story

HFCL’s management has also outlined aggressive growth targets for FY29, which have further boosted investor confidence.

The company is aiming for revenue of more than ₹10,000 crore by FY29, compared to the current revenue figure of ₹4,949 crore.

HFCL expects EBITDA margins to improve further to 20%–21% from the current 17%. The company has also set a target to increase exports contribution to 50% from the current 41%.

Another key focus area is the defence business. HFCL has projected defence revenue of ₹500 crore to ₹600 crore by FY29, compared to ₹77 crore reported in FY26.

HFCL Order Book and Defence Expansion Add to Positive Sentiment

HFCL’s strong order pipeline has also played a major role in the stock rally. The company’s order book stood at ₹21,206 crore at the end of FY26, more than doubling from ₹9,967 crore last year.

Management stated that the defence equipment segment alone has order visibility of nearly ₹2,230 crore, highlighting strong opportunities in the sector.

In another major development, HFCL has received 1,000 acres of land in Andhra Pradesh for setting up a defence manufacturing facility. The move is expected to strengthen the company’s defence manufacturing capabilities and support long-term expansion plans.

With strong earnings growth, improving profitability, rising order inflows and ambitious long-term guidance, HFCL has emerged as one of the biggest market gainers in recent weeks.