HFCL Limited (HFCL), a leading telecommunications equipment manufacturer, has announced a significant expansion of its Intermittent Bonded Ribbon (IBR) cable manufacturing capacity. The company's Board of Directors has approved an investment of approximately ₹125.55 crore to enhance its production capabilities, positioning HFCL as a key player in the specialized and high-growth IBR cable segment.

Expansion Details

The expansion plan aims to increase HFCL's IBR cable manufacturing capacity from the current 1.73 million fiber kilometers per annum (mfkm/p.a.) to 19.01 mfkm/p.a. This substantial growth will be implemented at the company's existing facilities in Hyderabad and Goa. The expansion is expected to be completed in phases, starting from December 2025 and becoming fully operational by June 2026.

Strategic Importance

This move aligns with HFCL's strategy to diversify its optical fiber cable product portfolio and capture high-value market segments. The expansion is primarily driven by the rising global demand for IBR cables, particularly from North America and Europe. HFCL has already secured orders for IBR cables from large hyperscalers, demonstrating market confidence in its capabilities.

IBR Cable Advantages

IBR cables are known for their superior performance in high-density fiber deployments. They offer:

• Enhanced flexibility
• Improved splicing efficiency
• Reduced weight

These characteristics make IBR cables ideal for data centers and advanced telecom networks.

Capacity and Investment Overview

Financing and Future Outlook

The expansion will be financed through a combination of debt and internal accruals. Upon completion, HFCL's consolidated Optical Fiber Cable (OFC) manufacturing capacity is expected to reach 42.36 mfkm/p.a., significantly boosting the company's production capabilities.

Other Developments

In a separate update, HFCL announced that its previously proposed expansion of the Optical Fiber Cable manufacturing facility by 10 mfkm/p.a., planned through its wholly-owned subsidiary HFCL Technologies Private Limited (HTPL) in Jammu & Kashmir, has been temporarily put on hold due to prevailing trans-border security concerns in the region.

This strategic expansion in IBR cable production capacity demonstrates HFCL's commitment to growth and its ability to adapt to market demands in the rapidly evolving telecommunications sector.

In a significant market development, HFCL Ltd. , a prominent player in the telecom equipment and technology solutions sector, witnessed a substantial block trade on the National Stock Exchange (NSE). The transaction involved approximately 7.63 million shares of the company.

Block Trade Details

The block trade, executed on the NSE, saw the exchange of 7,628,927 shares of HFCL Ltd. The shares were traded at a price of ₹87.16 per share, resulting in a total transaction value of ₹66.49 crores.

Market Impact

Such large-scale transactions often attract attention in the financial markets as they can potentially signal shifts in institutional holdings or major investor sentiment. However, it's important to note that the specific reasons behind this block trade and the identities of the involved parties have not been disclosed.

About HFCL Ltd.

HFCL Ltd., formerly known as Himachal Futuristic Communications Limited, is a technology enterprise specializing in manufacturing high-end transmission and access equipment, optical fiber, and optical fiber cables. The company has been actively involved in major telecommunication projects and has been expanding its footprint in the defense and railway communication sectors.

This significant block trade underscores the continued market interest in HFCL Ltd. and may warrant attention from investors and market analysts tracking the telecom and technology sectors. As always, market participants are advised to conduct their own research and consider their investment objectives before making any financial decisions based on this information.