HFCL Limited has informed the Exchange regarding Outcome of Board Meeting held on July 11, 2025.
HFCL · price
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Awaiting price reaction for this filing.
HFCL's Board has approved a massive expansion of its Intermittent Bonded Ribbon (IBR) cable manufacturing capacity from ~1.73 million fiber kilometres per annum to ~19.01 mfkm/p.a. — an over 10x increase — at its existing Hyderabad and Goa facilities, with a capital outlay of approximately ₹125.55 Crores to be funded through debt and internal accruals. The expansion is targeted at meeting rising global demand from data centres and telecom networks in North America and Europe, where HFCL already has orders in hand from large hyperscalers. The capacity addition will happen in phases starting December 2025, with full operations expected by June 2026, taking HFCL's consolidated OFC manufacturing capacity to ~42.36 mfkm/p.a. Separately, the previously proposed 10 mfkm/p.a. OFC expansion through subsidiary HTPL in Jammu & Kashmir has been temporarily put on hold due to the trans-border security situation in the region.
This is a positive growth signal — the sharp capacity ramp, backed by existing orders from hyperscalers, positions HFCL to tap into high-value global data centre demand, which should support revenue and margin expansion from FY27 onwards. However, investors should note the ₹125 Crore capex will increase debt and the J&K project delay removes some near-term capacity upside, though the overall expansion plan remains on track.