HFCL jumps 5% on Andhra Pradesh government land allotment
HFCL shares jumped nearly 5% in intraday trade after the Andhra Pradesh government allotted 1,000 acres in Sri Sathya Sai district for defense manufacturing.
The site will be used to make artillery ammunition shells, TNT filling, Multi-Mode Hand Grenades (MMHG), and other defense products—a clear sign India's ramping up its own defense production.
Land to be developed in 2 phases
The land will be developed in two phases (329 acres first, then 671 acres), and this move fits into a bigger trend: investors are upbeat about government support for local defense companies.
Stocks like Apollo Micro Systems and GRSE also saw gains as indigenization picks up.
Shares have dropped over 50% in the past year
Even with this recent surge, HFCL shares have dropped over 50% in the past year and are down 36% so far in 2025.
The company posted a net loss of ₹32 crore for Q1 FY26 (better than last year's ₹111 crore loss), but its stock is still trading below key averages—so things remain pretty volatile.