Strategic Fundraising for Growth
HFCL Ltd (HFCL.NS) has approved a fundraising plan of up to ₹700 crore to fuel its expansion in defence and telecom sectors. The capital will be raised through a mix of instruments including equity shares, bonds, debentures, and warrants, subject to shareholder and regulatory approvals.
The company aims to:
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Enhance R&D capabilities
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Set up new production facilities
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Leverage PLI and DLI schemes
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Expand its defence product portfolio and telecom equipment offerings
Q1 Financial Snapshot
Despite its ambitious plans, HFCL reported a net loss of ₹322.4 million in the June quarter (Q1 FY26), with consolidated revenue from operations at ₹8.71 billion. The loss was attributed to:
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Weak demand for optical fibre cables
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Margin pressure from new telecom products
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Slower execution in EPC contracts
Defence & Telecom Focus
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HFCL is doubling down on its defence ambitions:
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Developing electronic fuzes, thermal weapon sights, and surveillance radars
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Partnering with General Atomics for UAV subsystems
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Executing major contracts under BharatNet Phase-III with BSNL
In telecom, HFCL is:
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Expanding 5G product lines
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Increasing optical fibre cable capacity
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Targeting ₹10,000 crore revenue in coming years
Sources: Business Standard, Moneycontrol, ET Telecom, Wire & Cable India, Marketscreener, HFCL Newsroom, StockMarkets.co.in