• HFCL returned to profit in the June quarter as revenue more than doubled to ₹1,915 crore
• The company plans to expand optical fibre cable and data-centre connectivity capacity while targeting ₹800 crore in revenue from the new business
The fact
HFCL swung to a profit of ₹229 crore in the June quarter, reversing a loss of ₹32.2 crore from a year earlier. Revenue more than doubled to ₹1,915 crore, with exports contributing ₹1,063 crore – over half the total. The company's order book stood at ₹26,665 crore.
Managing Director Mahendra Nahata attributed the stronger performance partly to global fibre optic cable demand linked to hyperscale data-centre construction. More than 70% of HFCL's cable production is exported, he said. The company plans to increase optical fibre cable capacity to 3 million fibre kilometres, invest in glass-preform manufacturing, and expand its data-centre connectivity capacity fivefold. Its board has also approved ₹215 crore for an AI-related business that includes a data-centre connectivity manufacturing facility.
HFCL expects that business to generate about ₹800 crore in revenue this financial year, although shipment and project timing may affect quarterly results.
The assessment
HFCL’s results show a sharp improvement in company-wide revenue and exports, but they do not identify how much of that growth came from data-centre customers. Its ₹26,665 crore order book also includes businesses beyond fibre and data-centre connectivity, so it cannot be used on its own to measure demand for the company’s planned expansion.
HFCL intends to increase optical fibre cable capacity, add glass-preform manufacturing, and expand data-centre connectivity production fivefold. A preform facility would give the company an internal source of material for fibre manufacturing, but HFCL has not disclosed when the planned capacity will become operational or how much has already been secured by customer orders.
The company's ₹800 crore revenue forecast depends on new capacity becoming available, orders converting into shipments and revenue being recognised within the financial year. For BTW readers, commissioning dates, data-centre orders and separately reported revenue will show whether the investment is producing measurable growth from that market.
What to watch
Watch for HFCL to disclose commissioning dates for its preform, optical fibre cable and data-centre connectivity lines. Orders and revenue reported specifically for the data-centre business will indicate whether shipments are beginning in time to support the company’s ₹800 crore forecast.