HFCL Plans Rs. 400 Cr. Investment for Optical Fibre CapEx
HFCL Limited, an Indian manufacturer of Optical Fibre Cables (OFCs) and related products, has announced plans to further expand its Optical Fibre and OFC manufacturing capacities. The company will invest Rs. 400 crore towards this capacity augmentation.
HFCL’s Capacity Expansion of Optical Fibre, Optical Fibre Cables
Ongoing CapEx to Strengthen Optical Fibre and OFC Production
The newly announced expansion plan is in addition to HFCL’s ongoing capacity expansion for Optical Fibre and OFCs. As part of the ongoing expansion, the company is increasing its Optical Fibre manufacturing capacity from 28 million fibre kilometres (fkm) per annum to 33.9 million fkm per annum. Meanwhile, its OFC capacity is being expanded from 34 million fkm per annum to 42.36 million fkm per annum.
The ongoing capacity expansion is expected to be completed by December 2026.
Additional R. 400 Cr. Expansion to Further Boost Capacity
Under the newly announced Rs. 400 crore investment plan, HFCL will further expand its Optical Fibre and OFC manufacturing capacities. The company’s Optical Fibre capacity will be increased to 38.50 million fkm per annum, while its OFC capacity will be augmented to 56.36 million fkm per annum.
HFCL is expected to complete this capacity augmentation by July 2028. The company plans to fund the expansion through a combination of internal accruals and debt financing.
Expansion to Support Rising Domestic and International Demand
Explaining the rationale behind the expansion, HFCL highlighted in its official press release that the investment is targeted at catering to the growing demand for OFCs and optical connectivity products across domestic and international markets. This expansion will also address requirements arising from existing customer commitments, the company’s healthy order book and its expanding business pipeline.
According to HFCL, the expansion will strengthen its manufacturing capabilities, enhance its ability to execute current and future orders, improve operational efficiencies, strengthen supply chain resilience and support its export growth strategy.
HFCL Reports Strong Q1 FY27 Performance
HFCL recently announced its financial results for Q1 FY27, reporting consolidated revenue of Rs. 1,914.98 crore and a profit of Rs. 245.64 crore.
Commenting on the company’s Q1 FY27 performance, Mr Mahendra Nahata, Managing Director, HFCL, said, “I am pleased to share that the Company has delivered its highest-ever quarterly Revenue, Profitability and the Order Book during Q1 FY27”.
As of 30th June 2026, HFCL’s order book stood at approximately Rs. 26,665 crore.
HFCL’s recently secured orders include export orders for Optical Fibre Cables collectively valued at USD 54.81 million (approximately Rs. 522.73 crore) and USD 46.13 million (approximately Rs. 441.53 crore) from a renowned international customer.
About HFCL Limited: Established in 1987, HFCL is headquartered in Delhi. It caters primarily to the communication sector through optical fibre cables and transmission & access equipment manufacturing. HFCL has optical fibre cable manufacturing facilities in Goa and Hyderabad. HTL Limited, the company’s subsidiary, also has an optical fibre cable manufacturing plant in Chennai. The company has a Cable Reinforcement Solutions Plant in Hosur, Tamil Nadu.