Rs 21,206 Crore Order Book: Telecom Infrastructure Company Secures Rs 2,666 Crore BharatNet Contract; Share Price Jumps 3%

On Thursday, Indian equity benchmarks traded higher, with the benchmark Nifty 50 index gaining 39.55 points, or 0.16 per cent, to 24,125.25. Amid the positive market sentiment, HFCL share price traded at Rs 195.88, up Rs 5.75 or 3.02 per cent from the previous close, after the company announced the receipt of a major BharatNet Phase-III contract from Rail Vikas Nigam Ltd (RVNL).

HFCL Secures Rs 2,666 Crore BharatNet Phase-III Contract

HFCL Limited has secured a contract worth approximately Rs 2,666.09 crore from Rail Vikas Nigam Limited (RVNL) for the BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle.

The total contract value comprises capital expenditure (Capex) of approximately Rs 1,192.82 crore and operating expenditure (Opex) of around Rs 1,473.27 crore. The order has been awarded under general contract conditions in the normal course of business.

Scope Includes OFC Network Creation And Long-Term Maintenance

Under the scope of work, HFCL will undertake the supply of telecom equipment and related accessories, along with installation and commissioning activities. The project also includes the creation of an Optical Fiber Cable (OFC) telecom network across the designated telecom circle.

In addition, the company will be responsible for operating and maintaining the network for a period of 10 years, including a one-year warranty period. The implementation timeline for the project is two years, followed by long-term operations and maintenance services.

Expands Participation In BharatNet Rollout

The latest contract comes in addition to the Rs 2,167.65 crore BharatNet Phase-III orders awarded to HFCL by RVNL for the Uttar Pradesh (East) and Uttar Pradesh (West) Telecom Circles in January 2025.

With this new order, HFCL has further strengthened its participation in one of India's largest rural broadband connectivity initiatives. The company stated that the order reinforces its position in the telecom network infrastructure segment and highlights its capabilities in executing large-scale digital connectivity projects.

HFCL Contract Details

HFCL clarified that the contract has been awarded by a domestic entity and does not involve any related-party transaction. The promoter, promoter group and group companies do not have any interest in RVNL with respect to the awarded contract.

The order is expected to further strengthen the company's order book and expand its presence in government-led digital infrastructure projects across India.
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About HFCL

HFCL Ltd is a technology company engaged in the manufacturing of telecom and defence equipment, optical fiber and optical fiber cables, along with the development of digital communication networks for telecom operators, enterprises and government organisations.

The company operates six manufacturing facilities and has a presence across India and international markets. HFCL exports its products to more than 45 countries and derives revenue from both telecom products and network implementation projects.

What are your thoughts on HFCL securing the Rs 2,666 crore BharatNet Phase-III contract from RVNL? Share your views in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.