HFCL Signs ₹2,329 Crore Optical Fibre Cable Deal; Shares Fall 0.82%

Mumbai September, 01: HFCL Limited has entered into a three-year supply agreement with a global multinational corporation for high-fibre-count optical fibre cables, with the total contract value estimated at about US$244 million, equivalent to approximately ₹2,329 crore.

The agreement has been signed through HFCL’s wholly owned subsidiary and covers supplies from calendar year 2027 through December 2029. According to the company’s exchange filing, the customer will place orders periodically during the contract period based on its requirements.

The cables will be supplied according to customer specifications, with the agreement covering multi-million fibre-kilometre volumes of high-quality, high-fibre-count OFC.

HFCL has not disclosed the name of the customer. The company classified the customer as an international entity and confirmed that the transaction does not fall under related party transactions.

The contract gives the company a longer revenue opportunity in the optical fibre cable business rather than being a single, one-time order.

Stock Market Snapshot

HFCL shares were trading at ₹247.04, down ₹2.05 or 0.82%, as of 9:22:59 AM IST on September 1, 2026, according to the market data provided.

The stock had opened near ₹253 before giving up most of its early gains. It briefly moved around the ₹250 mark and then weakened further, reaching ₹247.04 at the reported timestamp.

The HFCL share price was therefore showing a negative reaction in early trading despite the announcement of the long-term supply agreement.

Trading remained relatively active during the opening minutes, with the stock moving within a narrow range after the initial decline.

Agreement Extends HFCL’s OFC Order Visibility

The three-year tenure is an important feature of the agreement. Instead of supplying against a single fixed order, HFCL will receive purchase requirements periodically through 2029.

The company said the agreement involves high-fibre-count OFC products, which require specialised manufacturing capabilities and adherence to precise customer specifications. Supplies are expected to start in 2027.

The estimated value of US$244 million is equivalent to around ₹2,329 crore. The actual value realised under the agreement will depend on the quantities ordered during the contract period and the terms applicable to individual purchases.

HFCL also stated that neither its promoter nor promoter group has an interest in the customer.

HFCL Strengthens Its Position In Global OFC Market

The agreement adds to HFCL’s presence in the international optical fibre cable market at a time when customers are seeking higher-capacity fibre products for expanding communications infrastructure.

In its disclosure, the company said only a limited number of manufacturers globally have the required technology depth, manufacturing precision and scale for such OFC products. HFCL said the agreement strengthens its competitive position and supports its longer-term growth outlook in the segment.

For HFCL, the multi-year arrangement also provides greater visibility on potential business from an international customer, although the filing does not provide a year-wise breakup of the expected contract value.

Conclusion

HFCL has entered into a three-year optical fibre cable supply agreement estimated at approximately ₹2,329 crore with a global multinational corporation.

The supplies are scheduled to begin in 2027 and continue through December 2029, with purchase orders to be released periodically. The company said the agreement reinforces its position in the global OFC market and reflects its manufacturing capabilities in high-fibre-count products.

The announcement, however, was not enough to lift the stock in early trading. HFCL shares were down 0.82% at ₹247.04 as of 9:22:59 AM IST on September 1, 2026.

Source:

• https://www.nseindia.com/get-quote/equity/HFCL/HFCL-Limited
• https://nsearchives.nseindia.com/corporate/AHMED_01092026084937_STX_Announcement_2329_Crore_Order_01092026.pdf