Shares of HFCL gained 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 setting up defence manufacturing facilities.
The Andhra Pradesh Industries and Commerce Department has announced that the State Investment Promotion Board has approved the company’s proposal to acquire 1,000 acres of land in Madakasira mandal of Sri Sathya Sai district for setting up defence manufacturing facilities.
In the first phase, Andhra Pradesh Industrial Infrastructure Corporation Limited (APIICL) will provide 329 acres of land. Further, in the next phase, another 671 acres of land will be allotted.
The proposed facilities will manufacture artillery shells, TNT-filled warheads, multi-mode hand grenades and other defence products, in line with the company’s strategy to expand its presence in the defence sector.
Following the announcement, HFCL shares rose 4.52% to hit a high of ₹ 73.46 per share on the National Stock Exchange (NSE). The stock opened at ₹ 71.10, up from its previous close of ₹ 70.28.
At 1:10 pm, the stock was trading 4.44% higher at ₹ 73.40 per share. The company has a market capitalisation of ₹ 10,515.64 crore.
In the last five days, HFCL shares have gained 4.68%. In the last month, the stock has gained 1.82%. On the other hand, HFCL shares have declined a significant 7.36% in the last 6 months and are down around 35.71% on a year-to-date 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 reported a consolidated net loss of ₹32.24 crore in Q1 FY26 as against a profit of ₹111.30 crore in the same period a year ago.
This decline in profit was due to a 25% year-on-year decline in revenue from operations during the quarter under review to ₹871.02 crore as against ₹1,158.24 crore in the June quarter of FY25.
However, sequentially, HFCL’s operating revenue grew 8.78% quarter-on-quarter (QoQ) to ₹800.72 crore in Q4FY25, the company said in a regulatory filing.
The tech company’s revenue from telecom products segment declined 18.76% year-on-year to ₹577.91 crore in the quarter as against ₹711.36 crore in the same period a year ago. The turnkey contracts and services segment contributed ₹293.11 crore to its revenue, down 34.34% from ₹446.38 crore in Q1FY25.
At the operating level, its EBITDA (earnings before interest, tax, depreciation and amortization) stood at ₹29 crore, down 83% from ₹174 crore in the same period a year ago. Its EBITDA margin declined to 3.3%, compared to 15% in Q1 FY25.
