HFCL Ltd has secured a significant three-year agreement with a global multinational corporation to supply optical fibre cables worth approximately ₹2,329 crore ($244 million). According to the company's stock exchange filing on Tuesday, September 1, the agreement will see HFCL supply high-fibre-count optical fibre cables through December 2029. The cables will be supplied through the company's overseas wholly owned subsidiary, with the agreement covering high-quality, high-fibre-count OFC manufactured according to the customer's specifications.
Under the comprehensive agreement, HFCL will supply 'multi-million fibre kilometres' of high-quality, high-fibre-count OFC in each calendar year from 2027 to 2029. As reported by CNBC TV18, the contract is scheduled to be executed up to December 2029, providing the company with a steady revenue stream over the three-year period. The company did not disclose the identity of the global multinational customer in the filing.
HFCL reported its strongest-ever quarterly performance in Q1FY27, with consolidated revenue rising 120% year-on-year to a record ₹1,915 crore. The company returned to profitability with a net profit of ₹245.64 crore compared with a loss of ₹29.3 crore in the year-ago quarter. EBITDA surged to ₹414 crore from ₹29 crore a year ago, with EBITDA margin expanding significantly to 21.6% from 3.3%. Exports emerged as a key growth driver, contributing ₹1,063.30 crore, or 55.53% of revenue, compared with ₹209.7 crore a year earlier, while the product business increased its contribution to 85% of revenue from 66% in Q1FY26.
According to CNBC TV18, HFCL's order book stood at a record ₹26,665 crore, providing strong revenue visibility for future quarters. Following the strong quarterly performance, the company raised its FY27 revenue growth aspiration to 40%, doubling its guidance from the earlier 20% projection. The company has also approved a ₹215 crore investment to set up a manufacturing facility for advanced AI data centre connectivity solutions. Its capacity expansion plans include increasing optical fibre capacity to 34 million fibre kilometres and optical fibre cable capacity to 43 million fibre kilometres.
According to HFCL's statement, the agreement strengthens the company's ability to secure strategic long-term engagements and reflects its technological capabilities, operational excellence and customer trust. The company emphasized that only a limited number of manufacturers globally have the technology depth, manufacturing precision and scale required to produce such complex OFC products. HFCL stated that the contract would strengthen its competitive position and long-term growth prospects in the global OFC market.
HFCL shares declined nearly 4% to touch an intraday low of ₹240.20 on Tuesday despite securing the major contract. As of September 1, 2026, HFCL has a total market capitalisation of ₹37,363.54 crore, according to NSE data. However, the stock has advanced more than 252% so far in 2026 and 240% over the last 12 months, reflecting strong investor confidence in the company's growth trajectory and market positioning. Over the past five trading sessions, shares have jumped 2.5%, while they have climbed 21% in a month and 262% in the last six months.
