Date: September 14, 2026

Board Meeting Outcomes

  • Approved additional capacity expansion of 4.60 million fiber kilometers per annum for Optical Fiber
  • Approved additional capacity expansion of 5.64 million fiber kilometers per annum for Optical Fiber Cable
  • Approved additional capacity expansion of 300 metric tonnes per annum for Preform manufacturing
  • Total additional capital expenditure estimated at approximately ₹820 crore
  • This is in addition to previously approved aggregate capital expenditure of approximately ₹980 crore
  • Total planned capital expenditure for capacity enhancement initiatives now approximately ₹1,800 crore

Capacity Details

Preform Manufacturing

  • Current ongoing expansion: ~300 metric tonnes per annum
  • Proposed addition: ~300 metric tonnes per annum
  • Total capacity after expansion: ~600 metric tonnes per annum
  • Investment required: ₹670 crore
  • Implementation through wholly owned subsidiary HFCL Technologies Private Limited

Optical Fiber Manufacturing

  • Existing capacity: 28.0 million fiber kilometers per annum
  • Current ongoing expansion resulting in capacity: 38.50 million fiber kilometers per annum
  • Proposed addition: 4.60 million fiber kilometers per annum
  • Total capacity after expansion: 43.10 million fiber kilometers per annum
  • Investment required: ₹150 crore

Optical Fiber Cable Manufacturing

  • Existing capacity: 39.0 million fiber kilometers per annum
  • Current ongoing expansion resulting in capacity: 56.36 million fiber kilometers per annum
  • Proposed addition: 5.64 million fiber kilometers per annum
  • Total capacity after expansion: 62.00 million fiber kilometers per annum

Project Timeline

  • Optical Fiber and Optical Fiber Cable capacity expansion expected completion: July 2028
  • Preform Manufacturing Facility expected establishment: October 2028

Financing Arrangements

Optical Fiber & Optical Fiber Cable Expansion

  • Appropriate mix of internal accruals and/or debt financing

Preform Manufacturing Facility

  • Appropriate mix of internal accruals, debts, proceeds from preferential issue of warrants already issued to Promoter and Promoter Group entity, or combination thereof

Strategic Rationale

  • Strong order book for Optical Fiber Cable and optical connectivity products (approximately ₹19,000 crore as on date)
  • Robust pipeline of additional business opportunities expected to materialize over near to medium term
  • Favorable long-term demand outlook globally for optical communications infrastructure
  • Growing demand drivers include AI-enabled digital infrastructure, hyperscale data centers, cloud computing, high-performance computing, telecom network expansion, fiber-to-the-home adoption, enterprise fiberization, rural connectivity initiatives, and telecom network modernization programmes

Manufacturing Integration Benefits

  • Creation of larger, integrated and more resilient optical fiber manufacturing platform
  • Coverage of critical value chain stages from Preform to Optical Fiber, Optical Fiber Cable and Connectivity Solutions
  • Enhanced backward integration capabilities through Preform manufacturing
  • Improved supply chain resilience and reduced dependence on external suppliers
  • Expected cost efficiencies and margin enhancement
  • Improved operational efficiencies and economies of scale
  • Enhanced export competitiveness

Management Commentary

Mr. Mahendra Nahata, Managing Director, stated: "The proposed investment marks an important step in HFCL's journey towards building a larger and fully integrated optical communications manufacturing platform. The growing adoption of AI-enabled digital infrastructure, hyperscale data centres, cloud computing and advanced telecom networks is creating significant long-term opportunities for optical communication products globally. By expanding our Optical Fiber and Optical Fiber Cable capacities and establishing a significantly larger Preform manufacturing facility, we intend to strengthen our ability to meet growing customer requirements, improve supply chain resilience and enhance operational efficiencies."