HFCL Strengthens Defence Business with Strategic Restructuring and ₹264 Crore Investment Plan

$HFCL has announced a major restructuring of its defence and aerospace business to build a more focused and scalable platform under HFCL Advance Systems Private Ltd (HASPL). As part of the plan, HFCL will invest ₹89.25 crore in HASPL, while the total investment by all investors will amount to ₹175 crore. Following the transaction, HFCL will hold a 51.02% stake in HASPL, with ITI Holdings and the proposed HFCL Advance Employee Trust each owning 14.99%, Anant Nahata holding 6.50%, Sushant Mohan Gupta and Shubhra Gupta each holding 4.75%, and BAS Engineering holding 3%. The company has also approved the sale of up to 80% stake in Raddef Pvt. Ltd. to HASPL for ₹75 crore; Raddef generated ₹9.04 crore in revenue during FY26. Additionally, HFCL will transfer its thermal weapon sight business to HASPL for ₹50 crore, a business that contributed ₹0.66 crore in revenue and had a net worth of ₹21.24 crore in FY26. HASPL will also acquire 100% of HFCL Defence Systems Pvt. Ltd. for ₹25 crore, a company that reported an unaudited turnover of ₹166.21 crore and net worth of ₹19.37 crore in FY26. Further, HASPL will invest another ₹25 crore to acquire the aerostructure business of Defsys Solutions. Through these transactions, HFCL aims to create an integrated defence platform spanning aerostructure manufacturing, radar and surveillance systems, and thermal weapon sight technologies. The new structure also provides access to an export order book of approximately ₹1,890 crore, strengthening the company's long-term growth opportunities in the defence and aerospace sector. Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.