HFCL fibre exports: ₹10,159-cr deal and FY26 surge

The trigger: exports move from side story to core growth

HFCL has been positioning its optical fibre cable (OFC) business as a larger export-led play, supported by multiple overseas wins and a sharply higher reported order book. The shift stands out because exports were a small part of the business not long ago. The company’s management has indicated that exports, which were 4.5% of revenue in FY21, crossed 41% by FY26. It has also set a target of 50%+ export share from FY27 onwards.

The export ramp matters for a simple reason highlighted in the note: specialty cable exports to global hyperscalers can offer better margins and faster payment cycles than domestic government-linked contracts. HFCL’s recent announcements show a steady cadence of overseas OFC orders with defined execution timelines. Alongside exports, the company continues to win domestic telecom orders and has also secured a defence-linked order through its subsidiary.

The headline contract: ₹10,159 crore over five years

A key development is a five-year supply agreement signed through HFCL’s overseas wholly owned subsidiary with a global multinational corporation for high-fibre-count optical fibre cables. HFCL disclosed the total potential value of the contract at about $1.10 billion, equivalent to around ₹10,159 crore, based on prevailing selling prices of OFC products being supplied. The supply period runs from 2026 until December 2030.

HFCL did not disclose the customer name in its filing. It said it will supply OFC as per customer specifications. While the contract value is described as “potential” over the tenure, it is a large visibility marker for the export pipeline and reinforces why export share is becoming central to the company’s narrative.

A steady stream of export wins through FY25-FY26

HFCL and its overseas subsidiary have reported several export order wins for OFC, often with completion dates clustered around April 2026 to December 2026. In December 2025, HFCL announced export orders worth $12.96 million, approximately ₹656.10 crore, for OFC through its overseas subsidiary, following a previous $16.5 million order from a European telecom service provider.

The company also disclosed an export order of $12.02 million (₹281.20 crore) to be fulfilled by December 2026. Another export order worth about $14.19 million (₹303.35 crore) was disclosed with execution by April 2026. It also announced export orders of $10.65 million (₹358.38 crore) to be completed by April 2026.

In February 2026, HFCL reported an export order worth $1.67 million, equivalent to ₹42.34 crore, with execution scheduled by May 2026. Across these disclosures, the recurring theme has been acceptance of HFCL’s high fibre-count OFC solutions and the company’s focus on scaling manufacturing and fulfilment.

Domestic OFC orders continue alongside exports

HFCL has also continued to win domestic OFC orders from private telecom operators. On May 4, it disclosed purchase orders worth ₹84.23 crore to supply optical fibre cables to a leading domestic private telecom service provider, with execution scheduled by August 2026.

Separately, HFCL and its material subsidiary HTL Limited secured purchase orders valued at approximately ₹60.95 crore (inclusive of GST) from a leading private domestic telecom service provider, with execution scheduled by May 2026. The company has also reported two new orders totalling ₹76.21 crore for optical fibre cable supply.

These domestic wins add to near-term execution visibility and keep the factories loaded, even as exports rise as a mix of revenue.

Subsidiary HTL and large domestic supply order

HFCL announced that HTL Limited, described as its material subsidiary, won orders worth ₹1,366 crore for optical fibre cable supply from a Tier-1 customer. The order is to be executed by December 2026. While the customer name was not disclosed in the provided text, the size and timeline indicate a meaningful addition to the medium-term order pipeline.

Defence optionality: Indian Army order via subsidiary

Beyond telecom, the note pointed to “defence optionality” and HFCL’s order disclosures include a defence-linked contract. HTL, a subsidiary of HFCL, has bagged a contract worth approximately ₹101.82 crore from the Indian Army for supply of tactical optical fibre cable and related accessories. While the OFC export story is the dominant driver in recent announcements, this defence order supports the view that specialised cable capability can also translate into non-telecom demand.

FY26 update: profit rise and order book jump

On May 7, 2026, HFCL reported its highest-ever consolidated profit of ₹184.45 crore for the fourth quarter ended March 31, supported by a surge in overseas business, new products, and capacity augmentation. HFCL attributed the improved financial performance to a favourable shift in revenue mix towards products, a higher share of exports, and improved realisations in high fiber-count OFC.

The company also disclosed that its overall order book rose to ₹21,206 crore, more than double compared with ₹9,967 crore reported at the end of FY25. Within this, the OFC segment recorded its highest-ever order book of ₹13,483 crore. These figures place OFC at the centre of HFCL’s current order visibility.

Why the export mix matters for cash flows and margins

The article note frames exports as structurally beneficial because global hyperscaler-related demand for specialty cables can combine higher value products with faster payment cycles. In contrast, domestic government-related contracts can have longer working-capital cycles.

HFCL’s export share shift from 4.5% in FY21 to over 41% by FY26, along with a 50%+ target from FY27, indicates the company is trying to make exports a base business rather than opportunistic wins. Separately, the note also referenced “preform backward integration” and valued the opportunity using a 52% EPS CAGR assumption and about 20x FY29 forward P/E, positioning the stock as an “AI-era” fibre backbone play. These valuation references reflect the note’s framing rather than company guidance.

Key disclosed facts at a glance

What investors will track next

The near-term focus remains on execution against the large pipeline of OFC orders, especially those with completion deadlines through April 2026, May 2026, August 2026, and December 2026. Investors will also watch whether management’s export mix target of 50%+ from FY27 is supported by continued overseas order wins and stable fulfilment. Another key datapoint will be how the company sustains realisations in high fibre-count cables, which it linked to FY26 performance.

The largest visibility marker is the ₹10,159-crore supply agreement running until December 2030, alongside the FY26 order book jump to ₹21,206 crore. The next set of disclosures around shipment progress, delivery schedules, and segment-level execution will determine how quickly this order momentum translates into reported revenue and cash flows.