HFCL Wins INR 834 Crore International Orders to Supply Optical Fibre Cables
HFCL’s foreign affiliate has bagged worldwide export orders worth INR 834.36 crore ($88.94 million) for optical fibre cables, to be completed by June 2027. The latest agreement boosts its global presence amid demand from telecom networks and AI data centers.
In a press release dated November 12th, telecom equipment manufacturer HFCL announced that its overseas wholly-owned subsidiary has received export orders from a foreign customer for optical fibre cables totalling around INR 834.36 crore, or approximately $88.94 million. By June 2027, the order is expected to be finished. But the customer's identity remained a secret from the business.
The orders confirm the customer's faith in HFCL's production capacity, technical prowess, and product quality, the business stated in a regulatory filing. In the second quarter ending September 30, 2026, HFCL's consolidated earnings increased from INR 72 crore the previous year to INR 394.22 crore, a multi-fold increase. The demand for optical fibre cables from AI data centers is the main driver of this profit.
Financial Dynamics of HFCL
The consolidated revenue from operations of HFCL more than quadrupled to INR 2,541.79 crore in Q2 FY27 from INR 1,043.34 crore in Q2 FY26, and the business is projecting an 80% revenue growth in FY27. It also aims to hit the INR 10,000 crore revenue mark before the predicted timetable of FY29. The international firm placed a three-year export order with HFCL in September for high-quality optical fibre cable, with a total value of $244 million (or approximately INR 2,329 crore).
A new investment of about INR 400 crore has been greenlit by the company's board of directors to increase production of optical fibre and optical fibre cables. The projected extension, which is set to be finished by July 2028, will be financed via a combination of loans and internal accumulations.
Deal Striking a Positive Chor for HFCL
In the medium to long term, the deal will help HFCL's optical fibre cable franchise, which is focused on exports, stand out more. Its worth is approximately 17% of FY2025-26 consolidated revenue, but instead of being recognised at order receipt, revenues will be recognised gradually until June 2027. Plus, it fits nicely with the company's strategy of targeting consumers in the global telecom and data center markets with connectivity devices that offer greater specifications.
Timely production and logistics are crucial for execution, especially when capacity increases are ramping up and fibre utilisation is at full capacity. The purchase bolsters demand abroad and increases revenue visibility across many quarters, which is good news for investors. But it doesn't take away the fact that cash conversion is being scrutinised. Due to rising inventory and borrowing costs associated with expansion, HFCL recorded a consolidated operational cash outflow of INR 378.13 crore in FY2025-26. The value is highly dependent on execution, margins, and disciplined working capital management, as the shares trade at 37.29 times trailing twelve months earnings, with an INR 212.80 price tag.
