HFCL approves Rs 400 crore capacity expansion

HFCL, a Delhi-based telecom equipment maker, announced on August 4, 2026, that its board has approved a fresh investment of approximately Rs 400 crore to expand its optical fibre and optical fibre cable manufacturing capacities. The expansion will be funded through a mix of internal accruals and debt and is expected to be completed by July 2028. The company plans to increase its optical fibre manufacturing capacity to 38.50 million fibre kilometres (fkm) per annum from the current ongoing expansion target of 33.90 million fkm, and its optical fibre cable capacity to 56.36 million fkm per annum from 42.36 million fkm. Currently, HFCL has an existing capacity of 28 million fkm for optical fibre and 34 million fkm for optical fibre cables. The expansion is driven by strong order book and demand from AI infrastructure, hyperscale data centres, cloud computing, 5G deployments, FTTH, and broadband expansion. The company expects the expansion to strengthen its manufacturing capabilities, improve operational efficiencies, and support its export growth strategy.