HFCL Ltd Approves ₹215 Crore Manufacturing Facility for Data Center Connectivity Products
HFCL Ltd announced a major expansion initiative, approving the setup of a state-of-the-art manufacturing facility dedicated to Data Center Connectivity Products. The investment is aimed at capitalizing on the accelerating global demand driven by AI and hyperscale data centers. Simultaneously, the company released its un-audited financial results for the first quarter ending June 30, 2026, reporting significant performance across both standalone and consolidated entities.The Board of Directors approved the setting up of the new manufacturing facility with an estimated capital outlay of ₹215 crore. This facility is intended to produce advanced data center connectivity products such as Miniature Multi-Fiber (MMC) and Super High-Density Multi-Fiber Termination (SNMT) assemblies, which are crucial components in high-speed data center and AI infrastructure.
The proposed manufacturing capacity stands at 2,70,000 assemblies per annum. The project is expected to be commissioned by September 2027. This strategic decision aims to expand the company’s manufacturing capabilities, strengthen its presence in the high-growth connectivity market, and cater to increasing domestic and international customer demand.
| Product Category | Existing Capacity | New Capacity Addition | Estimated Capital Outlay |
|---|---|---|---|
| Data Center Connectivity Products | N.A. | 2,70,000 assemblies per annum | ~₹ 215 crore |
The company plans to finance this expansion through an appropriate mix of internal accruals and/or debt financing. This new facility will operate in addition to the existing manufacturing facility of HTL Limited, a subsidiary of HFCL.
Q1 Financial Performance Highlights
HFCL Ltd reported its un-audited financial results for the first quarter ended June 30, 2026, on both standalone and consolidated bases.The company’s operational revenue from operations for the consolidated segment stood at ₹1,914.98 crore during the three months ended June 30, 2026. Total income reached ₹1,946.13 crore for the period. The net profit attributable to Owners of the Parent in the Consolidated entity was ₹300.71 crore.
Key figures from the un-audited standalone financial results include:
| Particulars (Standalone) | Three Months Ended June 30, 2026 | Preceding Three Months Ended March 31, 2026 | Corresponding Three Months Ended June 30, 2025 |
|---|---|---|---|
| Revenue from Operations | 1,607.80 | 1,511.24 | 789.28 |
| Total Income | 1,640.34 | 1,534.39 | 803.37 |
| Total Comprehensive Income (Loss) Attributable to Owners of the Parent | 317.80 | 145.22 | 9.62 |
The Q1 results were reviewed and recommended by the Audit Committee, which subsequently approved the un-audited financial results.
Consolidated Segment Performance Overview
The consolidated results for the quarter ended June 30, 2026 reflect the performance across various subsidiaries and jointly controlled entities, including HTL Limited, Polixel Security Systems Private Limited, and HFCL Technologies Private Limited among others.A review of segment revenue shows that the Telecom Products segment generated ₹1,589.53 crore in revenue for the quarter ending June 30, 2026. The Others segment accounted for ₹1,914.98 crore of consolidated revenue from operations.
The results indicate a strong operational commitment across segments, with specific financial data provided for various periods within the quarter.
HFCL Stock Price Movement
Shares of HFCL Limited are edging higher to ₹222.19 as of 1:31 PM today, buoyed by a 1.94% rally. The stock has seen strong trading activity, with 19.47 million shares changing hands and the equity currently situated within its intraday range of ₹218.25 to ₹225.00.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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