HFCL lands ₹2,666 cr BharatNet order from RVNL, second this year
The single contract equals **53.9%** of trailing annual revenue, with a decade of maintenance attached.
— 2 earlier stories on HFCL Ltd. →What's new
- HFCL wins ₹2,666 cr contract from RVNL for BharatNet Phase-III in Uttar Pradesh West.
- This follows a ₹2,167.65 cr RVNL order from January 2025 for the same project.
- Contract covers supply, installation, and 10-year maintenance after a 2-year implementation.
Why this matters
At 53.9% of trailing annual revenue, this single order transforms HFCL's book. Combined with the previous RVNL award, it locks in over a year's worth of revenue and provides a decade of high-visibility maintenance income. Execution over the next two years is the key test.
What we're watching
- Execution pace over the 2-year implementation phase.
- Any further BharatNet orders from other telecom circles.
- Impact on margins given the large fixed-cost component in O&M.
The full read
HFCL just doubled down on BharatNet. The ₹2,666.09 crore contract from RVNL is its second large order for the same project in six months. The scope covers supply, installation, and a decade of maintenance, locking in long-term cash flows. At a trailing P/E of 93.3, the market is already pricing in growth. This order makes that growth tangible. The open question is execution over the two-year implementation and the subsequent 10 years of O&M, where margins will depend on how well HFCL scales its operations. For now, the order book has reset the conversation.
Questions answered
- How does the ₹2,666 cr order compare to HFCL's revenue?
- It represents 53.9% of HFCL's trailing annual revenue of ₹4,949 crore, making it a transformative win for the company.
- What is the total value of both RVNL orders?
- The source does not combine them, but HFCL previously won a ₹2,167.65 crore contract from RVNL in January 2025 for the same project.
- What does the contract scope include?
- HFCL will supply telecom equipment, install and commission the network, create an optical fibre cable network, and provide 10 years of maintenance after a 2-year implementation phase.
- What is BharatNet Phase-III?
- BharatNet is the government's flagship programme to connect gram panchayats with high-speed optical fibre broadband. Phase-III extends the network to additional villages and telecom circles.
- Is this a repeat order from RVNL?
- Yes, HFCL previously won a ₹2,167.65 crore contract from RVNL for the same BharatNet Phase-III project in January 2025. This is the second award.
- How long is the revenue visibility from this contract?
- HFCL will have revenue from implementation over two years and then maintenance revenue for 10 years beyond that, providing long-term cash flow visibility.
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All notes on HFCL →- 17 Jun 2026 · 6:34 PM IST HFCL lands ₹2,666 cr BharatNet order from RVNL, second this year
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