HFCL Share Price Rises as Board Approves ₹125 Cr IBR Cable Capacity Expansion

Market Performance

HFCL share price showed signs of recovery on July 14, breaking its 5-day losing streak.

• Price at 09:22 AM: ₹81.43
• Change: Up ₹0.14 or 0.17% on the BSE

The marginal uptick came following a strategic expansion decision by the company board.

Main News: ₹125 Cr Investment in IBR Cable Expansion

HFCL Ltd announced the approval of a significant IBR (Intermittent Bonded Ribbon) cable manufacturing capacity expansion.

Key Highlights:

• New Capacity: From 1.73 mfkm/h. to 19.01 mfkm/p.a.
• Total Investment: Approx. ₹125.55 Crore
• Funding Source: Combination of debt and internal accruals
• Facilities Involved: Hyderabad and Goa units

The move is part of HFCL's larger strategy to diversify its optical fiber cable portfolio, tap into high-value global markets, and scale up its manufacturing footprint.

The expansion is also backed by confirmed orders from major hyperscalers, reflecting strong demand and trust in HFCL's product capabilities.

Company Details

HFCL (Himachal Futuristic Communications Ltd) continues to solidify its position in the optical fiber cable industry. This latest development enhances its long-term operational capabilities:

• Total Consolidated OFC Capacity Post-Expansion: 42.36 mfkm/p.a.
• Target Markets: North America and Europe
• Implementation Timeline:
  • Begins: December 2025
  • Fully Operational: June 2026

In contrast, the company has paused another proposed expansion project:

• Earlier Proposal: Additional 10 mfkm/p.a OFC capacity through HFCL Technologies (HTPL)
• Reason for Suspension: Security concerns in Jammu & Kashmir
• The suspension will remain until the situation improves for safe industrial activity.

Summary of the Article

HFCL share price moved up slightly on July 14 after the company's board approved a major ₹125 Crore expansion in IBR cable manufacturing. The initiative aligns with its goal to diversify offerings and capture international markets. Once completed, the total OFC production capacity will scale to 42.36 mfkm/p.a. Meanwhile, a previously planned expansion via HTPL in J&K has been put on hold due to security risks.