Expansion - HFCL Ltd

Code BSE: 500183 NSE:

Expansion of IBR Cable Manufacturing Capacity In line with the Company’s strategy to diversify its optical fiber cable product portfolio, capture high-value market segments, and drive market expansion, the Board has approved the enhancement of Intermittent Bonded Ribbon (IBR) cable manufacturing capacity from 1.73 million fiber kilometres per annum (mfkm/p.a.) to 19.01 mfkm/p.a. at its existing facilities in Hyderabad and Goa with a total capital outlay of approximately Rs 125.55 Crores. This expansion is aimed at meeting rising global demand, particularly from North America and Europe. The Company already has orders in hand of IBR cables from large hyperscalers, underscoring the market’s confidence in its capabilities. It strategically positions HFCL as a key player in this specialized and high growth segment. IBR cables are known for their superior performance and suitability in high-density fiber deployments, offering enhanced flexibility, splicing efficiency and reduced weight, making them ideal for data centres and telecom networks. Note : a) Existing Annual Capacity of IBR Cables & Utilisation thereof = 1.73 mfkm/p.a. 100% b) Additional proposed capacity = 17.28 mfkm/p.a. c) Capacity after proposed expansion = 19.01 mfkm/p.a. d) Estimated Investment Capex = Rs 125.55 Crores (I) Period within which the Capacity is to be added: Expected to be completed in a phased manner starting from December 2025 and is anticipated to be fully operational by June 2026. (II) Mode of financing: Debts and internal accruals. (III) Rationale: To capitalize on the growing global demand of IBR cables, particularly in North America and Europe.