HFCL approves ₹820 crore capex, targets 43.1 Mn fkm

Board clears fresh spending for optical manufacturing

HFCL Limited on September 14, 2026 approved an additional capital expenditure of about ₹820 crore to expand manufacturing capacity across optical fiber, optical fiber cable, and preform. The decision adds to the company’s ongoing build-out in optical communications, a segment that supplies core components used in telecom and data networks. With this approval, HFCL’s total planned capex for these initiatives rises to about ₹1,800 crore. The company said the new outlay is aimed at strengthening its position in optical communications manufacturing and supporting demand across connectivity solutions.

What the ₹820 crore capex covers

The incremental ₹820 crore is intended for three parts of the optical value chain: optical fiber, optical fiber cable (OFC), and preform. Preform is a key input used to manufacture optical fiber, and expanding preform capacity typically supports backward integration. HFCL’s decision also comes alongside references to a strong order book in optical fiber cable and optical connectivity products, and a pipeline of opportunities expected to materialise over the near to medium term. The company has framed the step as a response to a favourable long-term global demand outlook.

New capacities approved and the post-expansion targets

HFCL’s board approved additional annual capacities that would lift output in both fiber and cable, and meaningfully expand preform capacity. After the expansion, optical fiber output is slated to reach 43.10 Mn fiber kilometres (Mn fkm) per annum. Optical fiber cable capacity is planned to reach 62.00 Mn fkm per annum. Preform capacity is planned to roughly double to around 600 MT per annum.

Timelines: July 2028 for fiber and cable, October 2028 for preform

HFCL has indicated separate completion timelines for different parts of the plan. The optical fiber and optical fiber cable expansions are expected to be completed by July 2028. The new preform manufacturing facility is scheduled for completion by October 2028. This staggered timeline matters because preform capacity can influence internal supply availability for fiber manufacturing once commissioned.

How the expansion will be funded

HFCL said the ₹820 crore investment will be funded through a mix of internal accruals, proceeds from preferential warrants issued to promoters, borrowings from financial institutions, and other suitable financing arrangements. The company also clarified that this additional capex is separate from an aggregate ₹980 crore already approved for similar projects. Put together, the disclosures highlight that the expanded plan rests on multiple funding sources rather than a single route, and that the company is continuing with a broader multi-phase capital programme.

Order book context: ₹19,000 crore across OFC and connectivity solutions

HFCL has disclosed that the combined order book for OFC and connectivity solutions stands at ₹19,000 crore. The company has linked the additional investment to this backlog as well as to the expected business pipeline. A large order book can increase near-term visibility for capacity utilisation, while also creating pressure on execution timelines and supply-chain readiness, particularly for inputs like preform.

How this builds on the August 2026 capacity plan

The September 2026 decision follows a previous board approval dated August 4, 2026 for a capex outlay of about ₹400 crore to expand optical fiber and OFC capacities, with completion expected by July 2028. Under that earlier programme, optical fibre capacity was to be expanded to 38.50 Mn fkm per annum and OFC capacity to 56.36 Mn fkm per annum. The disclosures also described an ongoing expansion target where optical fiber capacity was being increased from 28.0 Mn fkm to 33.90 Mn fkm annually, and optical fiber cable capacity from 34.0 Mn fkm to 42.36 Mn fkm per annum. In this context, the latest approvals push the capacity trajectory further beyond those milestones.

Export deal reference: ₹2,329 crore OFC supply agreement

Separately, HFCL has disclosed a three-year agreement with a global multinational corporation to supply optical fibre cables worth about $144 million, equivalent to around ₹2,329 crore. While the capacity approvals and the export contract are distinct announcements, the presence of a long-duration supply agreement provides an example of the kind of demand that can underpin a multi-year manufacturing expansion plan.

Industry backdrop: peers also expanding capacity

The broader optical fibre and cable ecosystem is also seeing capacity expansion plans. The provided disclosures reference Japan’s Furukawa Electric planning to invest about ₹6,000 crore across India, the US, Brazil and Japan to expand optical fibre and rollable ribbon cable production, with mass production scheduled to begin progressively from the second half of FY2028. Its investment in India is to involve Birla Furukawa Fibre Optics, a joint venture with Universal Cables, subject to agreement on terms. This context indicates that capacity additions are not limited to one company, and that supply chains may be preparing for a period of higher demand.

Market impact and why the numbers matter

For HFCL, the immediate market-relevant datapoints are the scale of capex and the step-up in planned capacity. The incremental ₹820 crore lifts total planned capex for these initiatives to about ₹1,800 crore, signalling sustained capital commitment. On the operating side, optical fiber capacity moving to 43.10 Mn fkm per annum and OFC to 62.00 Mn fkm per annum implies higher potential volumes, subject to commissioning and demand. The planned preform expansion to about 600 MT per annum is positioned as a backward integration step, which the company expects will improve supply chain resilience.

Conclusion

HFCL’s September 14, 2026 approval of ₹820 crore additional capex expands its optical fiber, OFC, and preform roadmap and takes total planned outlay for these initiatives to about ₹1,800 crore. The company has set July 2028 as the target for the fiber and cable expansions and October 2028 for the new preform facility, while outlining a multi-source funding mix. The next key milestones to track are execution progress against the commissioning timelines and any further disclosures linked to its ₹19,000 crore order book and pipeline of connectivity opportunities.