Capacity Expansion Makes News: ₹1,800 Cr Build-Out Puts HFCL’s AI-Ready Fiber Story in the Business Headlines

Fiber to 43.1 Mn fkm, cable to 62 Mn fkm and preform to 600 MT a year, a build-out now being tracked by business media.

On 14 September 2026, the Board of Council member HFCL approved an additional capital outlay of around ₹820 crore for optical fibre (OF), optical fibre cable (OFC) and preform manufacturing. Together with the ₹980 crore approved earlier, HFCL’s total planned investment in these projects now stands at about ₹1,800 crore.

What the expansion adds

Timeline and funding

• The optical fibre and optical fibre cable expansions are expected to be completed by July 2028.

• The new preform facility, to be set up in HFCL’s wholly owned subsidiary HFCL Technologies, is targeted for October 2028.

• The investment will be funded through a mix of internal accruals, proceeds from preferential warrants issued to promoters, and borrowings.

Demand outlook

HFCL links the expansion to rising demand from AI-enabled data centres, hyperscale facilities, cloud computing, telecom network expansion and fiberisation programmes, supported by an order book of around ₹19,000 crore for OFC and connectivity products. Managing Director Mahendra Nahata said the investment will help build a “fully integrated optical communications manufacturing platform” and strengthen supply-chain resilience.

HFCL boosts capex to ₹1,800 crore for optical fibre production, ETTelecom