HFCL Limited has completed the voluntary liquidation of its step-down subsidiary HFCL Poland Sp z.o.o., marking the end of its Polish entity operations. The company disclosed this development to stock exchanges on January 13, 2026, under SEBI Listing Regulations, confirming that the subsidiary's name was removed from the National Court Register effective January 02, 2026.

Liquidation Timeline and Process

The liquidation process concluded on January 02, 2026, when HFCL Poland Sp z.o.o. was officially removed from Poland's National Court Register. HFCL Limited received formal intimation of this liquidation on January 12, 2026, and subsequently informed stakeholders and stock exchanges the following day.

Financial Impact Assessment

The liquidated subsidiary had no operational business activity, ensuring zero financial impact on HFCL's consolidated operations. According to the company's disclosure, HFCL Poland Sp z.o.o. contributed no revenue or net worth to the parent company's financial performance.

Regulatory Compliance

HFCL Limited fulfilled its disclosure obligations under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company provided comprehensive details as required under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and SEBI Circular no. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024.

The disclosure confirmed that standard sale-related parameters were not applicable since this was a voluntary liquidation rather than a disposal transaction. No consideration was received, no buyers were involved, and the process did not constitute a related party transaction or fall under any scheme of arrangement.

Corporate Structure Simplification

This liquidation represents a strategic move to streamline HFCL's corporate structure by eliminating non-operational entities. The step-down subsidiary served no active business purpose, making its liquidation a logical administrative decision to reduce regulatory compliance burden without affecting operational capabilities or financial performance.

HFCL shares delivered their strongest single-day performance since May, surging 9% on December 31, 2025, as the stock transitioned out of the Futures & Options segment. The rally marked a significant development for the telecom equipment company, though it comes against the backdrop of a challenging year for shareholders.

Trading Activity and F&O Exit

The stock experienced exceptional trading activity on December 31, with volumes reaching unprecedented levels. Market data shows the following trading pattern:

HFCL joined three other companies—NCC, Titagarh Rail, and Cyient—in being excluded from the F&O segment. Starting from the December 31 trading session, HFCL shares will only be available for trading in the cash market, eliminating futures and options contracts for the stock.

2025 Performance Challenges

Despite Wednesday's surge, HFCL has faced significant headwinds throughout 2025. The stock's annual performance presents a stark contrast to recent gains:

The 40% decline in 2025 represents HFCL's worst calendar year performance since 2008, when the stock plummeted 78%. Historical data reveals a pattern of volatility, with the company experiencing negative returns in multiple years including 2011-2013 (three consecutive years), 2016, 2018, 2019, and 2022.

Technical Analysis and Current Levels

From a technical perspective, HFCL shares continue to face resistance from key moving averages. The stock remains below its 50-day moving average, positioned at ₹71.00. Current trading levels show:

Market Outlook

The exit from F&O trading represents a significant structural change for HFCL, potentially affecting liquidity and trading patterns going forward. With the stock trading at ₹69.00 following the 8.7% gain on December 31, shares have nearly returned to levels last observed toward the end of 2022, effectively erasing gains from the previous two positive years.

The removal from F&O segment, while creating Wednesday's surge, reflects underlying concerns about the stock's volatility and market positioning. Investors will be monitoring whether the cash-only trading environment provides more stability for the telecom equipment manufacturer in the coming period.