HFCL Ltd. expects revenue from its defence business to begin flowing from the first quarter of financial year 2028 as the telecom equipment maker prepares to execute major orders and expands its presence across military communications, surveillance and ammunition. According to reports from NDTV Profit, the company is currently building its order pipeline in the current financial year, with meaningful execution of major defence contracts expected to begin next fiscal year. Revenue from the defence business is likely to start reflecting in HFCL's financials from Q1 FY28, marking a significant milestone for the company's strategic diversification into defence manufacturing.
The company is actively bidding for multiple defence contracts, including Indian Army tenders for fibre optic cables and thermal imaging systems. As reported by NDTV Profit, HFCL has also been shortlisted for the Infantry Combat Vehicle programme, opening up another potential growth opportunity in its emerging defence portfolio. The company is developing a wider range of indigenous defence technologies, including surveillance radars, anti-drone systems and jammers, positioning itself as a comprehensive defence solutions provider for India's military modernization requirements.
Field trials with the Indian Army for some of HFCL's indigenous defence systems are expected to begin soon, according to sources cited by NDTV Profit. The company's defence push extends beyond electronic warfare and communications, with its Puttaparthi manufacturing facility expected to produce ammunition and hand grenades, adding a new vertical to the company's defence business. This expansion represents a significant diversification from HFCL's traditional telecom equipment focus, with the company developing comprehensive defence capabilities across multiple technology domains.
The defence expansion comes as HFCL shares have experienced a sharp rally this year, with the stock surging more than 200% so far. As reported by NDTV Profit, the stock has risen from a 2026 low of ₹60.95 to around ₹211.78, touching a year-to-date high of ₹226.04. This significant stock performance reflects investor confidence in the company's strategic pivot toward defence manufacturing and its potential to capitalize on India's growing defence modernization requirements, with the stock staging a remarkable recovery from its previous lows.
