HFCL Secures Rs 834 Crore Overseas Optical Fibre Cable Orders

HFCL has been expanding its optical fibre cable and connectivity business to serve global telecom, data-centre and digital-infrastructure customers. The company has now secured export orders worth about Rs 834.36 crore, or about USD 88.94 million, for the supply of optical fibre cables through its overseas wholly owned subsidiary.

The contracts have been awarded by an international customer and are scheduled for execution by June 2027. HFCL said the cables will be supplied in line with customer specifications and under general contract conditions. The company identified the transaction as part of its normal course of business.

The customer’s name was not disclosed. HFCL said its promoter, promoter group and group companies do not have any interest in the entity awarding the contracts. It also confirmed that the orders do not constitute related-party transactions.

The order value is equivalent to about 17 per cent of HFCL’s consolidated revenue of Rs 4,949.27 crore in FY2025-26, although revenue from the contracts will be recognised progressively during execution. At the end of the second quarter of FY2026-27, HFCL reported an overall Order Book of Rs 28,911 crore, of which 64 per cent related to optical fibre cable and data-centre connectivity and 57 per cent came from exports.

The development fits HFCL’s strategy of increasing product-led overseas business. The company is expanding optical fibre cable capacity to about 62 million fibre kilometres annually and optical fibre capacity to about 43.1 million fibre kilometres. Its latest quarterly performance reflected this momentum, with September 2026 net sales rising 143.62 per cent YoY to Rs 2,541.79 crore and profit after Tax increasing 447.09 per cent to Rs 394.56 crore.

As of 11:06 a.m. on November 12, 2026, HFCL traded at Rs 212.80, up 0.66 per cent from the previous close. The share was about 22 per cent below its 52-week high of Rs 271.35, although it had gained 173.87 per cent over one year, compared with a 0.08 per cent decline in the BSE 500. The contrast reflects the stock’s strong prior performance and the market’s focus on sustained execution.

What This Means for Investors

The contract provides additional medium-term visibility for HFCL’s export-oriented optical fibre cable franchise. Its value equals about 17 per cent of FY2025-26 consolidated revenue, though sales will be recognised progressively through June 2027 rather than at order receipt. It also aligns with the company’s push into higher-specification connectivity products for global telecom and data-centre customers. Execution will depend on timely production and Logistics, particularly while fibre utilisation is effectively full and capacity additions are being ramped up.

For investors, the order is supportive because it reinforces overseas demand and extends revenue visibility across several quarters. It does not, however, remove scrutiny on cash conversion. HFCL reported a Rs 378.13 crore consolidated operating cash outflow in FY2025-26 as inventory and borrowings increased during expansion. At Rs 212.80, the shares trade at 37.29 times trailing twelve-month earnings, leaving valuation sensitive to execution, margins and disciplined working-capital management.

Disclaimer: The article is for informational purposes only and not investment advice.