HFCL shares jump 5% on ₹2,666cr BharatNet order

What moved the stocks on Thursday

Shares of HFCL Ltd and Rail Vikas Nigam Ltd (RVNL) climbed up to 5% in Thursday’s trade after both companies disclosed fresh order wins. RVNL said it received a Letter of Acceptance (LoA) from East Coast Railway, while HFCL announced a large BharatNet Phase-III contract received from RVNL. The announcements linked two public infrastructure projects, one in railways and another in telecom network rollout. HFCL’s stock moved sharply intraday, with reports placing the day’s high around ₹199 on the BSE. The order updates were shared through exchange filings.

RVNL’s railway order: LoA from East Coast Railway

RVNL said it received a Letter of Acceptance worth INR 967.92 crore from East Coast Railway. The company clarified that the amount includes 18% GST. The order relates to a railway bridge project, as described in the provided details. The disclosure was cited as one of the triggers behind RVNL’s share move of up to 5% during the session. Beyond the headline value and the client, no additional project timeline or execution detail was provided in the text.

HFCL’s BharatNet Phase-III order: contract from RVNL

HFCL said it secured a contract worth approximately INR 2,666.09 crore from RVNL. The contract pertains to the BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle. HFCL disclosed the order in an exchange filing, with the disclosure date mentioned as June 17, 2026. The announcement was followed by an intraday jump of about 4% to 5%, with the stock touching around ₹200 on the NSE and around ₹199 on the BSE during Thursday’s trade. HFCL said the order strengthens its position in the telecom network segment.

Scope of work: equipment, OFC network, and 10-year maintenance

HFCL’s filing described a broad scope of work under the contract. It includes supply of telecom equipment and related accessories, along with installation and commissioning. It also covers creation of an Optical Fiber Cable (OFC) telecom network. In addition, HFCL will maintain the project for 10 years, including a one-year warranty period. The combination of build-out and long-term maintenance was highlighted in the disclosed scope. The text did not specify project milestones or phased billing schedules.

How the market reacted: price levels and recent momentum

HFCL shares were reported to have risen as much as 5% to a day’s high of ₹199 on the BSE in Thursday’s intraday trade. Another data point in the text noted the stock rose 3.29% to ₹196.45 after the announcement. One report referenced a previous close of ₹190.13 and an intraday move to about ₹198. The article also cited strong recent momentum, stating HFCL shares were up 200% in six months and about 185% in 2026. Separately, the text mentioned the stock had surged around 189% on a year-to-date basis, and another line cited a 193% surge thus far in FY27.

Earlier BharatNet awards and another RailTel order

HFCL said this order is in addition to earlier BharatNet Phase-III contracts worth INR 2,167.65 crore awarded by RVNL. Those earlier contracts covered the Uttar Pradesh (East) and Uttar Pradesh (West) Telecom Circles, and were disclosed on January 23, 2025. The text also mentioned that, earlier in May, HFCL secured a purchase order worth INR 135.09 crore from RailTel Corporation of India. That RailTel order was for annual maintenance services for the Secure Operations Network project supporting data centres used by the Indian defence forces. These references were presented as part of HFCL’s wider execution pipeline.

Business positioning mentioned: telecom, optical fibre, defence and AI connectivity

The provided text describes HFCL as a key player in optical fibre cable manufacturing. It also states the company is involved in AI connectivity, in the context of rising connectivity needs. The text further notes that HFCL is expanding into defence and aerospace sectors. Alongside the new BharatNet award, these segments were cited as part of how investors are viewing the company’s growth drivers. No separate segment revenue numbers were provided in the material.

Valuation and order book metrics cited in the text

One segment in the text pointed to valuation and execution expectations. It said HFCL was trading at around 87 times price to earnings, versus an industry median of 14 times. It also cited an order book of INR 21,000 crore. The text linked investor focus to execution, stating that execution needs to justify the valuation and rally. No additional balance sheet numbers were provided beyond that commentary.

Key facts table

Market impact: what these orders change immediately

The immediate market impact described was a price response of up to 5% for both HFCL and RVNL following the disclosures. For HFCL, the size of the BharatNet contract and the 10-year maintenance element were presented as improving visibility for the telecom network business. For RVNL, the East Coast Railway LoA added another disclosed project win and supported the day’s move. The text also suggests investors were already tracking HFCL closely due to strong performance in 2026, and the new order acted as an additional trigger.

Why the developments matter

Together, the announcements point to continuing public infrastructure ordering across railways and broadband networks. HFCL’s contract directly ties it to BharatNet Phase-III execution in Uttar Pradesh (West), and the scope includes both build-out and long-term maintenance. The text also frames the stock’s valuation and order book as areas investors are monitoring, particularly given the cited P/E comparison and the INR 21,000 crore order book figure. For RVNL, the LoA value and client disclosure provide a fresh data point on railway project ordering.

Conclusion

HFCL and RVNL shares rose up to 5% on Thursday after the companies disclosed new orders, led by HFCL’s INR 2,666.09 crore BharatNet Phase-III contract and RVNL’s INR 967.92 crore LoA from East Coast Railway. HFCL said the BharatNet work includes supply, installation, OFC network creation, and 10-year maintenance including a one-year warranty period. The next updates investors will watch are further execution disclosures and any additional project milestones communicated through exchange filings.