HFCL share price broke 5-day losing streak and trading marginally higher in the early trade on July 14 as the company board approved the expansion of IBR cable manufacturing capacity with an investment of Rs 125 crore through debts and internal accruals.
At 09:22am, HFCL was quoting at Rs 81.43, up Rs 0.14, or 0.17 percent on the BSE.
"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 crore," company
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.
Catch all the market action on our live blog
The capacity expansion is expected to be completed in a phased manner starting from December 2025 and is anticipated to be fully operational by June 2026.
Upon completion of the aforesaid expansion, the company’s consolidated OFC manufacturing capacity will reach 42.36 mfkm/p.a.
The company's previously proposed expansion of the optical fiber cable manufacturing facility by 10 mfkm/p.a., which was to be undertaken through the company’s wholly-owned subsidiary, HFCL Technologies (HTPL), has been temporarily put on hold due to the prevailing trans-border security situation in Jammu & Kashmir.
In view of the current concerns and associated operational risks in the region, the proposed expansion will remain suspended until the situation stabilises and a favourable environment for industrial development is restored.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
