HFCL capex is increasing by about ₹820 crore after the telecom-equipment maker approved additional optical-fibre, optical-fibre-cable and preform capacity on September 14. The decision takes its planned investment across these expansion projects to roughly ₹1,800 crore, according to the company’s exchange disclosure and matching reports from CNBC-TV18 and News18.
- The added spend is split between a ₹670 crore preform facility and ₹150 crore of fibre and cable expansion.
- HFCL expects the fibre and cable additions by July 2028 and the preform facility by October 2028.
- The plan deepens vertical integration, but returns will depend on timely construction, demand conversion and the final debt share.
HFCL capex expands three linked stages
The plan matters because preform, bare fibre and finished cable are sequential stages of the same manufacturing chain. Adding capacity at all three points can reduce a mismatch in which one stage becomes the bottleneck for another.
The disclosure puts current optical-fibre capacity at 28 million fibre kilometres a year, with an existing project intended to lift that to 38.5 million. The newly approved 4.6 million addition would take the figure to 43.1 million. Cable capacity is planned to reach 62 million fibre kilometres a year, while preform capacity would reach 600 metric tonnes annually.
| Measure | Disclosed figure |
|---|---|
| Additional capex | ₹820 crore |
| Total programme | about ₹1,800 crore |
| Added optical-fibre capacity | 4.60 million fkm a year |
| Added cable capacity | 5.64 million fkm a year |
| Added preform capacity | 300 MT a year |
| Target completion | July–October 2028 |
How the ₹820 crore will be funded
HFCL said it may use internal accruals, proceeds from promoter and promoter-group warrants, bank or institutional borrowing, and other suitable arrangements. That flexibility does not disclose the final financing mix, so readers should not assume the whole programme is funded from cash or the whole amount becomes debt.
The company linked the build-out to its order book and demand from data centres, artificial-intelligence infrastructure, cloud computing, telecom expansion and fibre-to-the-home networks. Those are management’s stated demand drivers, not guaranteed utilisation. The commercial test begins only when commissioned lines win orders at margins that cover depreciation, interest and working capital.
What investors should monitor
Three milestones are more useful than the headline amount: equipment delivery, commercial commissioning and utilisation. The preform facility is particularly important because it can reduce dependence on external raw-material supply for fibre production, but a delay there could weaken the intended integration benefit.
The existing Solar Industries acquisition analysis shows why funding structure matters as much as strategic intent. Our KARAM Safety investment report similarly separates committed capital from the operating outcomes it must produce.
FAQs
What is the new HFCL capex?
HFCL approved about ₹820 crore of additional spending, taking planned investment in the linked fibre, cable and preform expansions to about ₹1,800 crore.
When should the capacity be ready?
The fibre and cable additions are targeted for July 2028; the new preform facility is targeted for October 2028.
Why is preform capacity important?
A preform is the glass input from which optical fibre is drawn. Making more of it internally can improve supply control, though execution and economics still need to be proven.
Sources: the HFCL exchange-filing record, plus same-event reporting from Business Upturn and News18.
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