HFCL bags ₹2,329 crore OFC order from global multinational for 2027-29 supply; shares trade 2.5% lower
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HFCL said the ₹2,329 crore OFC supply agreement strengthens its position in the global optical fibre cable market, with the company noting that only a limited number of manufacturers have the technology, manufacturing precision and scale needed for such high-fibre-count products.
HFCL has secured a three-year international supply contract worth around ₹2,329 crore from a global multinational corporation for high-fibre-count optical fibre cables (OFC).
The company disclosed the order in an exchange filing on Tuesday, September 1, saying the contract is valued at around $244 million and will be executed through its overseas wholly owned subsidiary.
Under the agreement, HFCL will supply multi-million fibre kilometres of OFC in each calendar year from 2027 to 2029. The contract will run through December 2029.
HFCL has not named the multinational company that awarded the contract.
The company said the order strengthens its position in the global OFC market, particularly in products that require specialised technology and manufacturing capabilities. HFCL said only a limited number of manufacturers globally have the technology, manufacturing precision and scale needed to produce such high-fibre-count cables.
The company also said the contract reflects its ability to secure long-term international business and adds to its presence in the global OFC market.
HFCL clarified that neither its promoter nor promoter group has any interest in the entity awarding the contract. The transaction also does not fall under related-party transactions.
The latest order comes after a strong first quarter for HFCL. The company reported its highest-ever quarterly performance in Q1FY27, helped by higher exports, a better product mix and operating leverage.
Consolidated revenue increased 120% year-on-year to ₹1,915 crore, while EBITDA jumped to ₹414 crore from ₹29 crore in the year-ago quarter. The company reported a net profit of ₹228.6 crore against a loss of ₹32.2 crore a year earlier.
EBITDA margin also improved sharply to 21.6% from 3.3%. Exports contributed ₹1,063 crore during the quarter, accounting for 55.5% of revenue compared with ₹210 crore, or around 17%, in Q1FY26. The product business also increased its contribution to 85% of revenue from 66% a year earlier.
HFCL's order book stood at a record ₹26,665 crore at the end of the quarter. Following the strong performance, the company raised its FY27 revenue growth aspiration to 40%.
The company has also approved an investment of ₹215 crore for a new manufacturing facility focused on advanced connectivity solutions for AI data centres. HFCL plans to raise its optical fibre capacity to 34 million fibre kilometres and optical fibre cable capacity to 43 million fibre kilometres.
HFCL shares were trading 2.5% lower at ₹242.85 on Tuesday. Despite the day's decline, the stock has gained more than 252% so far in 2026 and around 240% over the past 12 months.
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Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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