HFCL Limited has approved the establishment of a Defence Manufacturing Facility in Sri Satya Sai District, Andhra Pradesh. The Board of Directors granted approval at its meeting held on May 14, 2026, in continuation of the company's earlier announcement dated September 11, 2025. The facility will focus on the manufacture of Multi-Mode Hand Grenades (MMHG) and similar other products, with a total initial capital outlay of approximately ₹230 crore.

This strategic initiative aligns with HFCL's long-term expansion into high-value defence manufacturing and supports India's national objective of achieving self-reliance, or 'Aatmanirbharata', in defence production. The move is designed to strengthen HFCL's product portfolio and long-term growth prospects in the defence sector. The new facility will also position the company to leverage emerging opportunities arising from increased defence indigenisation, global supply chain realignment, and long-term defence procurement programmes.

The domestic and global defence sectors are currently experiencing significant growth driven by heightened geopolitical uncertainties, enhanced focus on national security, and increasing government investments in advanced defence technologies. India, in particular, is witnessing a strong policy push under import substitution, indigenisation, and long-term defence procurement programmes, resulting in substantial opportunities for domestic manufacturers with strong engineering and manufacturing capabilities.

Project Details

The project involves a capacity addition of approximately 40 lakh units for Multi-Mode Hand Grenades and similar products. The following table summarises the key parameters of the proposed Defence Facility:

Strategic Rationale and Financing

The proposed investment is expected to significantly enhance HFCL's capabilities in defence manufacturing and create a strong platform for future growth in the sector. Financing for the project will be sourced through a mix of internal accruals, debt financing, and proceeds from the preferential issue of convertible warrants. The disclosure was made pursuant to Regulation 30 read with Part A of Schedule III to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

HFCL Limited has notified the stock exchanges of its management's upcoming virtual participation in an investor and analyst conference, in compliance with applicable regulatory requirements. The intimation was submitted on May 14, 2026, and is in accordance with Regulation 30 read with Para A of Part A of Schedule III to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Conference Details

The company's management will participate virtually in the Nakshatra III – Shining Stars Conference, hosted by Centrum Broking. The event is scheduled for Wednesday, May 20, 2026, and will provide a platform for discussions on general business updates and the industry in which the company operates. Interactions are expected to take place on a group or one-on-one basis with investors.

Regulatory Compliance

The intimation has been filed in compliance with Regulation 30 of the SEBI Listing Regulations. Additionally, in compliance with Regulation 46(2)(o) of the SEBI Listing Regulations, the information is being hosted on the company's official website. Only information already available in the public domain will be shared with investors during the conference.

The company has noted that the above schedule may undergo changes due to exigencies on the part of the organisers or the company itself. The disclosure was signed by Manoj Baid, President & Company Secretary, HFCL Limited, on May 14, 2026.