Shares of HFCL, the telecommunication equipment maker, are on a roll post company's Q4 earnings and strong order wins. The HFCL stock has gained 109% in 2026 and 90% in a year, making it strongly overbought on charts with RSI climbing to 91.8. An RSI above 70 indicates a stock is overbought or has more buyers than sellers in a trading session. 

The stock hit a 52-week high of Rs 147.75 in the previous session 

Virat Jagad Sr. Technical Research Analyst at Bonanza said," HFCL has witnessed a strong breakout move supported by sharp volume expansion and bullish price action after consolidating near the Rs 70–80 zone for several months. RSI is near 89, reflecting strong momentum but also signaling overbought conditions, so fresh entry should be considered only on minor dips or consolidation. For fresh positions, entry can be considered near Rs 142–145 with stop loss at Rs 136, which now acts as immediate support, while upside targets remain Rs 155 and Rs 165. Existing holders can continue to ride the trend with a trailing stop loss at Rs 136 as the stock continues to form higher highs and higher lows with sustained buying interest."

Sachin Gupta, Vice President – Technical Research, Choice Broking said, "The rapid rise has also pushed momentum indicators into overheated territory. The Relative Strength Index (RSI) is currently around 91, suggesting the stock may be overbought in the short term. While the rally has been extremely fast, the stock could witness temporary profit booking or consolidation before the next leg of the upmove. Rather than chasing prices at current levels, traders may consider waiting for a healthy correction toward the Rs 132–Rs 135 zone for better risk-reward opportunities. As long as HFCL remains above the important support level of Rs 128, the broader bullish trend is expected to stay intact. If the momentum continues, the stock could gradually move toward the Rs 160 mark in the coming weeks."

In the current session, HFCL shares slipped 3.75% to Rs 141.10. Market cap of the firm stood at Rs 21,849 crore. It also hit a high of Rs 147 in the same session. 

The rally comes amid strong Q4 earnings show. The firm reported a strong turnaround in its financial performance. HFLC posted a net profit of Rs 178.5 crore in Q4 compared to a net loss of Rs 81.43 crore in the corresponding period last year. 

Revenue in the March 2026 quarter climbed 17.4 per cent year-on-year to Rs 1,824.12 crore from Rs 800.72 crore a year ago. Total income stood at Rs 1,846.38 crore in Q4 against Rs 814.36 crore in the same period last year, while total expenses rose to Rs 1,617.71 crore from Rs 918.19 crore.

The company reported its highest-ever order book at Rs 21,206 crore in FY2025–26, higher than Rs 9,967 crore in the previous financial year.

Apart from Q4 earnings, the firm won a series of order recently, which led to positive sentiment around the stock. The firm on May 4 won purchase orders worth Rs 84.23 crore, for the supply of optical fiber cables, from one of the leading private telecom operators of the company.

On April 8, HTL Limited, a material subsidiary of the company secured order worth Rs 1366 crore form a renowned tier 1 customer for the supply of optical fiber cables. 

HFCL Limited is primarily engaged in manufacturing of telecommunication equipment, optical fiber cables and intelligent power systems. The company is a manufacturer of optical fiber cables, optical transport, power electronics and broadband equipment for the telecommunication industry.