In Phase I, HFCL will receive 329 acres, followed by an additional 671 acres in Phase II. The proposed facilities will focus on manufacturing artillery ammunition shells, TNT filling, Multi-Mode Hand Grenades (MMHG), and other defence products.
Momentum in the broader defence pack also aided sentiment, with shares of Apollo Micro Systems and GRSE jumping up to 8% in intra-day trade on strong volumes, driven by optimism around government spending, new orders, and long-term indigenisation plans for the sector.
Analysts believe the defence sector remains one of the more structural growth stories in the Indian market despite near-term volatility.
HFCL shares, however, have been laggards—falling over 50% in the past year and tumbling nearly 36% so far in 2025. The stock trades below both its 50-day and 200-day SMAs of Rs 76.1 and Rs 89.8, respectively, Trendlyne data showed.The counter has witnessed sharp swings, with its 1-year beta hovering around 2.0, reflecting very high volatility.HFCL is a technology company with interests spanning telecommunications, defence, and network solutions, designing, integrating, and delivering next-generation technology products and services.
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HFCL’s weak earnings have weighed on its share price. The company reported a consolidated net loss of Rs 32 crore in the June 2025 quarter, narrowing from a Rs 111 crore loss a year earlier. Revenue came in at Rs 886 crore, down 24% from Rs 1,169 crore in the same quarter of 2024.
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