HFCL shares rise 5% as firm to expand capacity with mfg unit for ₹215 crore; posts Q1 FY27 net profit at ₹246 crore

With an estimated outlay of ₹215 crore, the facility will have a capacity of 2,70,000 assemblies per annum and is expected to be commissioned by September 2027.

The proposed manufacturing facility will make advanced data centre connectivity products, including miniature multi-fiber (MMC) and super high-density multi-fiber termination (SNMT) assemblies, which are widely used in high-speed data centre and AI infrastructure.

HFCL in a regulatory filing said the decision for the capacity expansion was taken in view of the significant growth in global demand for data centre connectivity products, driven by the rapid deployment of artificial intelligence (AI), hyperscale data centres, cloud computing, high-performance computing, and high-speed networking infrastructure.

“This structural shift is accelerating the demand for next-generation high-density optical connectivity solutions, thereby creating substantial business opportunities for the Company in both domestic and international markets,” HFCL said in a regulatory filing.

The proposed investment is expected to strengthen the company's manufacturing capabilities, expand its product portfolio in the high-growth data centre connectivity segment and enhance export opportunities.

HFCL further added that the proposed facility is in addition to the existing manufacturing facility of HTL Limited, its subsidiary, and said that upon commissioning, it will substantially augment the company’s manufacturing capacity for data centre connectivity products on a consolidated basis.

HFCL Q1 FY27 earnings

Along with the capacity expansion, HFCL also reported its first quarter earnings for the fiscal year 2026-27.

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.

The company said it has achieved its highest-ever order book of around ₹26,665 crore, nearly 5 times its FY26 revenue, which strengthens its long-term revenue visibility. Its export revenue stood at ₹1,063.30 crore, about 55.53% of its total revenue for the reporting quarter.  

The export revenue grew more than 4 times from ₹209.7 crore posted in the June 2025 quarter.

“With the strategic initiatives undertaken which are now translating into tangible outcomes, HFCL has entered a new phase of accelerated and profitable growth. The convergence of AI, digital infrastructure, optical connectivity and defence modernisation is creating significant long-term opportunities for the Company. With our expanding technology portfolio, manufacturing capabilities and global presence, we remain well positioned to create sustainable long-term value for our stakeholders,” said Mahendra Nahata, Managing Director, HFCL.

HFCL share price trends

On Wednesday, HFCL shares closed at ₹217.90 apiece on the National Stock Exchange, slipping marginally by 0.03%. The stock had touched an intraday high of ₹228 per share and a low of ₹214.11 apiece during the session.

Over the past five trading sessions, shares of the company have fallen 3%, while they have climbed 4% in a month. In the last six months, the stock has skyrocketed 249%, while from the beginning of the year, it has zoomed 216%.

Shares of the firm had hit a 52-week high of ₹229.50 on July 7, 2026, and a 52-week low of ₹59.82 on January 27, 2026.

As of July 22, 2026, HFCL has a total market capitalisation of ₹33,359.48 crore, according to NSE data.