HFCL Limited has informed the Exchange about Expansion of IBR Cable Manufacturing Capacity
HFCL · price
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HFCL's board has approved a major expansion of its Intermittent Bonded Ribbon (IBR) cable manufacturing capacity, scaling up from ~1.73 million fiber km per annum to ~19.01 mfkm/p.a. at existing facilities in Hyderabad and Goa. The total capital outlay is ~₹125.55 Crores, funded through debt and internal accruals, with phased completion starting December 2025 and full operations expected by June 2026. The move targets rising demand from data centres and telecom networks in North America and Europe, where HFCL already has orders in hand from large hyperscalers. After this expansion, the company's consolidated OFC manufacturing capacity will reach ~42.36 mfkm/p.a. Separately, a previously planned 10 mfkm/p.a. expansion through subsidiary HTPL in Jammu & Kashmir has been put on hold indefinitely due to trans-border security concerns.
The capacity boost positions HFCL to benefit from strong global demand for high-density fibre in data centres, which is positive for long-term revenue growth. However, the indefinite suspension of the J&K-based expansion due to security issues creates some uncertainty around the broader capacity ramp-up timeline.