HFCL shares decline 5% after board approves capacity expansion worth ₹820 crore; details here

The total capital expenditure for these additional capacity expansions will be ₹820 crore. The Board gave a nod for additional capacity expansion of 4.60 million fibre kilometres per annum for optical fibre, 5.64 million fibre kms per annum for optical fibre cable and 300 million tonne per annum for preform.

The Preform manufacturing facility will be implemented in its wholly owned subsidiary HFCL Technologies.

“The investment is proposed to be funded through an appropriate mix of internal accruals, proceeds from the preferential issue of warrants already issued to Promoter and Promoter Group entity, borrowings from financial institutions and banks, and/or other suitable financing arrangements, as may be required,” HFCL said in a statement.

The company in a filing also said that the capacity expansion is in addition to the aggregate capital expenditure of approximately ₹980 crore already approved by the Board for optical fibre, optical fibre cable and preform manufacturing projects. With this, the total planned capital expenditure for these capacity enhancement initiatives stands at approximately ₹1,800 crore.

HFCL also said that upon completion of the capacity expansions, its manufacturing capacities will increase to 43.10 million fibre kilometres per annum for optical fibre, 62.00 million fibre kilometres per annum for optical fibre cable and 600 MT per annum for Preform.

As of date, HFCL’s combined order for optical fibre cable and connectivity solutions stood at ₹19,000 crore.

“By expanding our Optical Fiber and Optical Fiber Cable capacities and establishing a significantly larger Preform manufacturing facility, we intend to strengthen our ability to meet growing customer requirements, improve supply chain resilience and enhance operational efficiencies. This investment reflects our confidence in the long-term growth potential of the optical communications industry and reinforces our commitment to building globally competitive manufacturing capabilities,” said Mahendra Nahata, Managing Director at HFCL.

HFCL Q1 FY27 earnings

The domestic telecom gear-making firm recorded the highest-ever quarterly consolidated profit at ₹245.64 crore for the April-June quarter of FY27. HFCL had posted a loss of ₹29.3 crore in the same period a year ago.

The performance was mainly driven by demand from hyperscale data centres, export growth and enhancement in production generating economies of scale, the company said.

HFCL reported that its revenue more than doubled to ₹1,914.98 crore in the first quarter of the current fiscal year from ₹871 crore recorded in the June 2025 quarter. It also doubled its revenue growth guidance for FY27 to 40% from 20% projected earlier.

HFCL share price trends

At 11:50 AM, HFCL shares were trading at ₹223.9 apiece on the National Stock Exchange, declining 4.19%.

Over the past five trading sessions, shares of the company have fallen 10%, while they have climbed 2% in a month. In the past six months, the stock has skyrocketed 214%, while from the beginning of the year, it has zoomed 224%.

Shares of the firm had hit a 52-week high of ₹256.70 on August 31, 2026, and a 52-week low of ₹59.82 on January 27, 2026.

As of September 15, 2026, HFCL has a total market capitalisation of ₹34,231.92 crore, according to NSE data.