Why HFCL Share Trended in India Early October 2026

What Sparked the Search Surge?

In early October 2026, the term “hfcl share” climbed the Google Trends list in India, with searches up about 50% in the last 24 hours. The spike followed fresh coverage of the stock’s six‑month price tripling and a sharp 15% rise in three trading sessions.

Six‑Month Momentum Driven by AI and Defence Orders

According to a report published on 6 October 2026, HFCL’s share price had increased threefold over the previous six months, outpacing the broader market. The company, which makes optical‑fibre cables and defence electronics, has benefited from a global increase in capital expenditure on artificial‑intelligence technologies.

Key to the rally is the expanding order book. It doubled to ₹21 206 crore by the end of FY26 from just under ₹10 000 crore a year earlier, and rose to a record ₹26 665 crore by the end of June 2026 – almost five times its FY26 revenue of ₹4 949.3 crore.

Overseas sales have also surged. The share of foreign revenue jumped to 40 % in FY26 from about 12 % the year before, and management expects more than 60 % of revenue to come from international markets by the end of the current fiscal year.

Guidance Upside and Capacity Expansion

Management raised FY27 revenue‑growth guidance to 40 % from 20 % and EBITDA‑margin estimate to 23 % from 20 %, citing a strong telecom order book and growing traction in defence and aerospace segments.

To meet demand, the company has increased optical‑fibre capacity to 34 million km from 28 million km and optical‑fibre‑cable capacity to 43 million km from 34 million km. It is also building a pre‑form manufacturing plant with a 300‑tonne annual capacity, slated to start operations by July 2029 at a cost of ₹580 crore.

Defence Diversification

HFCL’s defence portfolio now includes an order book of ₹2 300 crore at the end of June, with plans to set up an ammunition‑manufacturing complex for multimode hand‑grenades, electronic fuses and related products. The company also supplies surveillance radars, thermal imaging and tactical communication solutions.

Three‑Session Rally and Technical Levels

On 5 October 2026, the stock rallied about 15 % over three trading sessions, bringing the price close to a technical resistance near ₹260. The sharp advance has drawn attention to the possibility of short‑term consolidation versus continued upside.

While the rally is impressive, the trailing P/E stands at 64 versus a five‑year average of 39, signalling a valuation re‑rating that could be sensitive to market sentiment. Weak market sentiment and geopolitical uncertainties were also highlighted as potential short‑term risks.

For a deeper dive, read the original reports from Economic Times and Kalkine India.