HFCL shares in focus after company secures ₹10,159-crore optical fibre cable contract

Shares of telecom equipment maker HFCL came into focus on Friday after the company announced a major global supply agreement valued at around ₹10,159 crore. The deal marks one of the largest contracts in the company’s history and is expected to strengthen its long term revenue visibility.

According to the company’s regulatory filing, the agreement has been signed with a global multinational corporation for the supply of high fibre count optical fibre cables. The contract will be executed through HFCL’s overseas wholly owned subsidiary and will run for five years beginning in calendar year 2026.

The total potential value of the agreement is estimated at about $1.1 billion, equivalent to roughly ₹10,159 crore based on prevailing selling prices of the optical fibre products being supplied. The arrangement includes a minimum quantity of fibre cable that will be delivered every year during the contract period.

For HFCL, the deal represents a significant milestone as it is the first time the company has entered into a long term, multi year supply arrangement of this scale in the optical fibre segment. The agreement is expected to run initially until 2028 and may automatically extend for two additional years until 2030 depending on contract conditions.

Market participants said such long term global contracts could help strengthen HFCL’s position in the telecom infrastructure supply chain, particularly as demand for high capacity fibre networks continues to grow with the expansion of broadband and 5G services worldwide.