HFCL shares slip 2% post Q4FY26 rally: key levels

Price action: profit booking after a steep run-up

HFCL shares fell as much as 2% on Friday as investors booked profits after a rapid rise over the past month. The dip came after the stock posted a string of record highs during the week, supported by heavy volumes and momentum-led buying. At the time of writing in one market update, HFCL was trading about 1.7% lower at ₹143.8. Another update noted the stock slipping 3.75% to ₹141.10 during the session.

Despite the pullback, HFCL remained a standout momentum counter in the telecom equipment space. Reports in the market narrative put the stock’s gain at more than 90% over the past month, far ahead of the Nifty 500’s 4.6% rise over the same period. Intraday highs during the week were also highlighted, including an intraday high of ₹146.79 in the previous session.

The recent milestone: 52-week highs in focus

Multiple market snapshots flagged HFCL hitting fresh 52-week highs this week. One data point put the 52-week high at ₹147.75 in the previous session. Another table of historical prices cited a 52-week high of ₹147.67. In Friday’s trade, the stock also hit ₹147 intraday, according to one update.

The surge has also reshaped the year’s trading range. A report noted HFCL hit a fresh 52-week low of ₹59.82 at the end of January, followed by a steep climb over roughly 16 weeks.

What changed: Q4FY26 earnings turnaround

Sentiment improved after the company reported a sharp turnaround in fourth-quarter earnings. HFCL posted consolidated net profit of ₹178.5 crore for Q4FY26, compared with a loss in the year-ago period. Revenue more than doubled year-on-year to ₹1,824 crore.

The earnings update added to optimism that the company is benefiting from fresh order wins and India’s telecom infrastructure push. But after a rapid re-rating, traders also began watching whether earnings momentum can be sustained alongside continued contract wins.

Order book: record pipeline and recent disclosures

Order inflows were a key part of the bullish narrative. HFCL reported its highest-ever order book at ₹21,206 crore in FY2025-26, up from ₹9,967 crore in the previous financial year. Separately, a brokerage note highlighted that the company closed Q3 FY26 with a strong order book of ₹11,125 crore.

Brokerage commentary also pointed to long-term demand drivers. Geojit maintained a ‘Buy’ rating with a target of ₹150, citing a strong order book, defense sector expansion, and a favourable long-term fibre demand outlook.

Technical picture: RSI signals “strongly overbought”

Technical indicators featured prominently in market commentary because of the speed of the rise. One update noted RSI climbing to 91.8, while another referenced RSI around 91. A separate technical view cited RSI near 89, describing strong momentum but also signalling overbought conditions.

Virat Jagad, Senior Technical Research Analyst at Bonanza, said HFCL saw a breakout supported by sharp volume expansion and bullish price action after consolidating near the ₹70-₹80 zone for several months. He added that fresh entries should be considered only on minor dips or consolidation given overbought signals.

Sachin Gupta, Vice President - Technical Research at Choice Broking, also flagged the momentum indicators as “overheated,” and said the stock could see temporary profit booking or consolidation before the next upmove.

Levels that traders are watching: support, entries and targets

Bonanza’s technical view outlined specific levels: fresh positions could be considered near ₹142-₹145 with a stop loss at ₹136, which was described as immediate support. The upside targets cited were ₹155 and ₹165, while existing holders were advised to ride the trend with a trailing stop loss at ₹136.

Choice Broking’s view suggested waiting for a correction towards the ₹132-₹135 zone for improved risk-reward. It highlighted ₹128 as an important support level, with the broader bullish trend expected to remain intact as long as the stock stays above it. If momentum continues, the stock could gradually move toward ₹160 in the coming weeks, according to the same note.

Valuation snapshot and market context

Alongside technical heat, valuation metrics were also cited in market summaries. From a valuation perspective, one data point stated HFCL was trading at a price-to-earnings (P/E) ratio of 69.46 and a price-to-book (P/B) ratio of 4.95.

The combination of a steep price move, high RSI readings, and elevated valuation multiples is why market commentary has increasingly focused on discipline around entries. The immediate question for traders is less about the long-term theme and more about how quickly expectations have been priced in.

Key numbers at a glance

Market impact: what investors are reacting to

Friday’s decline reflected short-term positioning after a rapid climb, rather than a single negative trigger in the day’s updates. The stock had rallied for five consecutive sessions through Thursday, with one report putting the gain at nearly 37% over that stretch. Another note said a 32% rally over five sessions significantly contributed to the overall surge.

At the company level, the market has been balancing two signals: improving earnings and a rising order book on one side, and stretched technical indicators on the other. This is why multiple broker and analyst notes converged on the same tactical message: avoid chasing near peaks and look for dips or consolidation zones if entering fresh.

Conclusion

HFCL’s 2026 rally has been driven by a Q4FY26 earnings turnaround, fresh order wins, and a record reported order book, but the move has also pushed RSI into strongly overbought territory. The next data points investors are likely to track are whether HFCL sustains earnings momentum and continues securing large contracts that support its growing pipeline.