Telecom equipment manufacturer HFCL has announced plans to invest around ₹950 crore over the next two years to expand its optical fibre and optical fibre cable manufacturing capacity as demand continues to rise from data centres, telecom operators and the defence sector.
Speaking at the launch of the company’s data centre solutions portfolio, OptiQ AI, Managing Director Mahendra Nahata said the investment will strengthen HFCL’s manufacturing capabilities and support future growth.
Of the total investment, around ₹580 crore will be used to set up a preform manufacturing facility. Preforms are cylindrical glass rods that serve as the primary raw material for producing optical fibre, helping the company improve backward integration.
HFCL plans to increase its optical fibre cable production capacity from 39 million to 45 million fibre kilometres annually. Optical fibre manufacturing capacity will also rise from 30 million to 40 million route kilometres per year.
The company reported its highest-ever total order book of ₹21,206 crore in FY26, more than double the ₹9,967 crore recorded in the previous financial year. Its optical fibre cable business also achieved a record order book of ₹13,483 crore.
Nahata said HFCL aims to secure a 10 per cent share of the global optical fibre cable market within the next two to three years.
He noted that the rapid expansion of AI-driven data centres is significantly increasing demand for optical fibre cables, while the defence sector is also contributing through the growing use of fibre optic-based drones that are resistant to radio signal jamming.
HFCL has also partnered with IIT Delhi to develop next-generation optical fibre technologies, including hollow-core optical fibre and ultra-high-capacity cables capable of carrying up to 14,000 fibres. The company expects these advanced technologies to be developed over the next two years.
Nahata added that HFCL’s defence business is expected to start contributing to the company’s consolidated revenue from the first quarter of the next financial year.
