HFCL will Expand Across Optical Fibre, Data Centre, and Defence Segments
HFCL Ltd., an Indian manufacturer of Optical Fibre Cables (OFCs), has announced capacity expansion plans across multiple business segments. To support these expansions, the company has outlined a capital expenditure plan of Rs. 600 crore for FY27 and Rs. 350 crore for FY28 during its FY26 earnings call.
HFCL to Expand Optical Fibre and OFC Manufacturing Capacity
The company’s expansion plans include increasing its capacity for Optical Fibre and Optical Fibre Cable manufacturing. The Optical Fibre manufacturing capacity will be increased to 33.9 million fibre km (fkm) from the current capacity of 28 million fkm. HFCL expects to achieve this manufacturing target by December 2026.
Additionally, the company plans to expand its Optical Fibre Cable (OFC) manufacturing capacity to 42.36 million fkm from the existing 34 million fkm. This capacity expansion is also expected to be completed by December 2026.
HFCL’s Preform Manufacturing Plant to Strengthen Backward Integration
Apart from expanding its Optical Fibre manufacturing capabilities, HFCL is also setting up a preform manufacturing plant with an investment of Rs. 580 crore. The upcoming facility will initially have a manufacturing capacity of 300 Tonnes Per Year (TPY), which will later be scaled up to 500 TPY. However, the company has not specified the timeline for the completion of the project.
The company plans to fund the development of this facility through a mix of internal accruals, debt, and equity.
Commenting on the development of the plant, Mr. Mahendra Nahata, MD of HFCL, said, “This initiative is not merely about backward integration; it is about strengthening HFCL’s structural competitiveness. Preform will act as a key margin expansion lever and a long-term competitive advantage for HFCL”.
HTL to Expand Data Centre Interconnect Solutions Capacity
Further, through its subsidiary HTL Limited, HFCL has also decided to significantly increase manufacturing capacities for data centre interconnect solutions. According to the company, expansion will be carried out on a multi-fold basis.
HFCL has not disclosed the investment required for this expansion.
Mr. Nahata mentioned that data centre interconnect solutions are expected to contribute around Rs. 400 crore in additional revenue during FY26-27 and nearly Rs. 800 crore during FY27-28.
HFCL’s Ammunition Manufacturing Facility in Andhra Pradesh
HFCL is also in the process of establishing a defence manufacturing plant in Andhra Pradesh with an investment of Rs. 230 crore. The development includes setting up an ammunition-focused manufacturing facility, which will produce a range of ammunition products, including electronic fuzes, multi-mode hand grenades, and 155 mm artillery shells.
The company has acquired 1,000 acres of land for the development of the facility.
Commenting on the project, Mr. Nahata mentioned, “Once operational, it is expected to make a significant contribution to the Company’s overall performance.”
This project is expected to be completed by December 2027.
About HFCL Limited: Established in 1987, HFCL has its headquarters 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.
