Communication Equipment
Hfcl to Expand Fiber Optic Capacity to 34 Million Fiber Kilometers by FY27
HFCL targets major production ramp-up driven by surging global data center demand for high-fiber cables.
HFCL Limited is aggressively scaling up its fiber optic manufacturing capacity ahead of FY27, TradeAlone has learned. The company plans to raise its fiber production from 28 million fiber kilometers to 34 million fiber kilometers per year. The expansion is being driven by a sharp rise in global demand, particularly from large-scale data centers requiring ultra-high-density fiber optic cables. Managing Director Mahendra Nahata confirmed the ramp-up plans, citing strong order momentum and capacity constraints at current production levels.
Capacity Expansion Plans for FY27
HFCL is simultaneously expanding both its fiber and cable manufacturing lines. Fiber capacity will increase from 28 million fiber kilometers to 34 million fiber kilometers per year. Cable capacity is also being raised by 4 to 5 million kilometers per year. The company stated that both expansions are already underway and are expected to be fully operational within FY27 timelines.
The management stated that the ramp-up is not speculative. It is backed by firm demand signals from global buyers. HFCL is also scaling up its connectivity solutions segment, which serves data center infrastructure directly. This includes rack-to-rack cabling and internal data center interconnects.
The three-pronged expansion — fiber, cable, and connectivity solutions — marks one of HFCL's most aggressive capacity pushes in recent years. The company said all three verticals are expected to contribute meaningfully to revenue growth in FY27 and beyond. TradeAlone understands that capacity additions in connectivity solutions are being fast-tracked given the speed at which data center projects are being commissioned across Asia and the Middle East.
HFCL Limited belongs to the Technology › Communication Equipment sector. Here’s a quick read on where the business and the stock stand today.
Data Center Demand Reshaping Fiber Requirements
Traditional telecom operators typically purchase fiber optic cables containing 96 to 288 fibers per cable. Data centers, however, are now demanding cables with up to 7,000 fibers in a single cable. This shift represents a fundamental change in the scale and specification of fiber optic products required by the market.
The management stated that this surge in high-density fiber demand is the primary reason behind HFCL's capacity expansion. India and global markets are expected to add nearly 10 gigawatts of data center capacity over the next five years. Each gigawatt of data center infrastructure requires significant volumes of high-fiber-count cables and connectivity hardware.
HFCL said it has already started receiving orders from data center operators this fiscal year. The connectivity solutions vertical, which was launched recently, is gaining traction faster than initially projected. Data shows that demand from this segment alone could become a material revenue contributor within two fiscal years.
Order Book Strength and Revenue Outlook
HFCL's current order book remains strong, and the management stated that even with last year's significant capacity increase, the company is unable to fully meet existing demand. This supply-demand gap is one of the key reasons the company is accelerating its FY27 expansion plans rather than waiting for capacity utilization to normalize.
The company expects fiber optic cable sales to grow significantly in FY27 compared to the current fiscal year. Connectivity solutions revenue, which is still in early stages, is also projected to scale rapidly as data center construction activity accelerates. The management did not provide specific revenue guidance figures but indicated that growth across both segments would be substantial.
HFCL's expansion strategy positions it directly in the path of two of the largest infrastructure investment themes globally — data center buildout and fiber network densification. TradeAlone learns that the company is in active discussions with both domestic and international buyers to lock in long-term supply agreements ahead of its expanded capacity coming online. The outlook for FY27 and FY28 appears increasingly volume-driven rather than price-driven, which could support margin stability even as competition in the sector grows.
Key Facts
- HFCL is expanding fiber capacity from 28 million fiber kilometers to 34 million fiber kilometers per year
- Cable manufacturing capacity is being raised by 4 to 5 million kilometers per year
- Data centers require cables with up to 7,000 fibers, versus 96–288 fibers for traditional telecom cables
- India and global markets are expected to add approximately 10 gigawatts of data center capacity in five years
- HFCL launched its connectivity solutions segment this fiscal year and is already scaling it up
- The company stated current demand exceeds even its recently expanded production capacity
Market Impact
HFCL's confirmed capacity expansion and strong data center order pipeline signal a sustained revenue growth cycle through FY27 and FY28. The shift toward ultra-high-density fiber cables for data centers gives HFCL a higher-value product mix, which could support margins alongside volume growth. Investors are likely to watch quarterly order inflow and capacity utilization data closely as key indicators of execution progress.
HFCL gains 127.1% over three months and trades near its 52-week highs. The PEG stands at 65.83 — severely stretched. Any earnings miss could trigger a sharp de-rating. Thin margins at 6.3% leave limited room for error — any demand softness or cost spike hits the bottom line hard. Buyers show up with 1.8x the volume of sellers. Moreover, they dominated on 18 of recent sessions versus 12 for sellers — a healthy accumulation pattern. The stock rises 127.1% in three months. Yet revenue grows at only 1.5% and the PEG stands at 65.83. Either the market prices in a turnaround that has not shown up yet, or this is momentum without substance. Check the next two earnings prints before drawing conclusions. Check Fundamentals of HFCL Limited.
Communication Equipment
Hfcl Limited Q3 FY26: Revenue Surges 15%, PAT Grows 20%
HFCL Limited (NSE: HFCL) reports a 15% revenue surge and 20% PAT growth in Q3 FY26, audited by S Bhandari & Co LLP.
HFCL Limited (NSE: HFCL) has reported its financial results for Q3 FY26, showcasing a 15% surge in revenue and a 20% growth in PAT. The company’s performance has been audited by S Bhandari & Co LLP, ensuring the accuracy of these figures.
Revenue and PAT Growth
The telecom giant has managed to boost its revenue by 15% compared to the same period last year, reflecting strong market demand and effective business strategies. Moreover, the PAT has grown by 20%, indicating improved profitability and operational efficiency.
Auditors’ Review
The financial results have been reviewed by S Bhandari & Co LLP, who conducted their review in accordance with the Standard on Review Engagements (SRE) 2410. This review provided moderate assurance that the financial statements are free from material misstatements.
Forward-Looking Statement
As HFCL Limited continues to innovate and expand its market presence, the company remains optimistic about sustaining its growth trajectory in the upcoming quarters.
Source: NSE Corporate Announcement
Fundamental & Technical Analysis of HFCL Limited
HFCL Limited belongs to the Technology › Communication Equipment sector. Here’s a quick read on where the business and the stock stand today.
HFCL gains 20.1% over three months and trades near its 52-week highs. The PEG stands at 55.58 — severely stretched. Any earnings miss could trigger a sharp de-rating. Thin margins at 9.6% leave limited room for error — any demand softness or cost spike hits the bottom line hard. Buyers show up with 1.5x the volume of sellers. Moreover, they dominated on 16 of recent sessions versus 14 for sellers — a healthy accumulation pattern. The stock rises 20.1% in three months. Yet revenue grows at only 1.3% and the PEG stands at 55.58. Either the market prices in a turnaround that has not shown up yet, or this is momentum without substance. Check the next two earnings prints before drawing conclusions. Check Fundamentals of HFCL Limited.
Communication Equipment
Tejas Networks Limited (tejasnet) Q2 FY27: Revenue Up 58%, Order Book Soars to INR 2,315 Cr
Tejas Networks Limited (TEJASNET) reports a 58% rise in Q2 FY27 revenue to INR 406 Cr, with a significant increase in the order book to INR 2,315 Cr.
Tejas Networks Limited (TEJASNET) has reported a robust performance for Q2 FY27, with a significant 58% increase in revenue to INR 406 Cr compared to INR 262 Cr in Q2 FY26. The company’s order book has also soared to INR 2,315 Cr from INR 1,529 Cr in Q1 FY27, showcasing strong growth and increasing international engagements.
Revenue and Profit Insights
The company’s Q2 FY27 revenue was driven by shipments of Optical, IP, and FTTx products to private operators and system integrators, along with initial shipments for BSNL 4G add-on and our end-to-end 5G solution to an international customer in South America. Despite the revenue growth, the Profit After Tax (PAT) stood at INR -207 Cr compared to INR -307 Cr in the same quarter last year, indicating a slight improvement in the financial performance.
Order Book and Market Expansion
Tejas Networks Limited has received Letters of Intent (LOI) for over 18,000 4G sites for BSNL’s 4G network expansion, highlighting the company’s strong market presence and product scalability. The order book mix shows a strong domestic focus with 96% from India and 4% from international markets. The company has also initiated multiple Proof of Concept (POC) engagements in North America and Asia-Pacific regions, further expanding its global footprint.
Source: NSE Corporate Announcement
Fundamental & Technical Analysis of Tejas Networks Limited
Tejas Networks Limited belongs to the Technology › Communication Equipment sector. Here’s a quick read on where the business and the stock stand today.
Tejas falls 11.9% over three months and has not found a floor yet. Industry-leading margins of 70.4% reflect exceptional pricing power and operational efficiency. 5 loss quarters over five years is a serious red flag — earnings quality is poor and recovery is not guaranteed. The stock holds at 52% of its 52-week range with RSI at 43. In other words, neither side has a clear edge right now. Revenue grows at 6.1% CAGR and the PEG stands at 99.00. The growth does not match the price the market asks. Furthermore, flat price action adds no technical catalyst. A lower price or faster revenue growth would improve the odds. Check Fundamentals of Tejas Networks Limited.
Communication Equipment
Pace Digitek Limited (pacedigitk) Secures 115 Mwh Utility-scale BESS Project from BSES Rajdhani Power
Pace Digitek Limited (PACEDIGITK) secures 115 MWh utility-scale BESS project from BSES Rajdhani Power, marking fifth major BOO/BOOT storage win.
Pace Digitek Limited (NSE: PACEDIGITK) announced it has secured a 115 MWh utility-scale Battery Energy Storage System (BESS) project from BSES Rajdhani Power. This marks the company’s fifth major Build, Own, Operate, and Transfer (BOOT) storage project, significantly boosting its utility-scale BOO/BOOT portfolio to 3.32 GWh.
Project Details
The 57.5 MW/115 MWh BESS project will be developed under a 12-year BOOT model, with a capital outlay of approximately Rs. 179.4 crore. The project is slated for completion within seven months. Under the long-term Battery Energy Storage Service Agreement (BESSA), Pace Digitek will receive a fixed capacity tariff of Rs. 47.05 lakh per MW per year, translating into annual contracted capacity revenue of Rs. 27.1 crore.
Strategic Growth
This award adds to Pace Digitek’s recent BESS wins, including a Rs. 488.6 crore order from NTPC GE Power Services Private Limited for a standalone BESS in September 2026. The company has been progressively building capabilities across the energy storage value chain, including BESS manufacturing, system integration, equipment supply, EPC execution, and long-term ownership and operation of storage assets. Since the end of Q1 FY2027, the company has secured Rs. 761 crore of additional orders, further strengthening its order visibility.
As a result, Pace Digitek intends to build on its manufacturing and execution capabilities and selectively expand its presence across the energy storage market. Commenting on the development, Mr. Venugopal Rao Maddisetty, Chairman & Managing Director, Pace Digitek Limited, said: “The BSES award is another important milestone in the development of our Energy business and marks our fifth utility-scale BOO/BOOT storage project. It reinforces the capabilities we have built across BESS manufacturing, project execution, and long-term asset operations. We remain focused on disciplined execution, scaling our manufacturing capabilities, and selectively building a portfolio of contracted energy infrastructure assets, while continuing to serve the evolving requirements of India’s power and renewable energy ecosystem.”
Source: NSE Corporate Announcement
Fundamental & Technical Analysis of Pace Digitek Limited
Pace Digitek Limited belongs to the Technology › Communication Equipment sector. Here’s a quick read on where the business and the stock stand today.
Pace falls 25.1% over three months and has not found a floor yet. The PEG of 0.06 is extremely low. Either the market misses the growth story, or there is a catch worth investigating. Revenue grows at 73.9% and profits at 175.1% CAGR. Both numbers are exceptional. The stock gains 1.0% in the last month, recovering from the three-month slide. However, it is too early to call this a confirmed reversal. Revenue grows at 73.9% and profits at 175.1% CAGR, with D/E of 0.00. Meanwhile, the stock dips 25.1% in three months without any fundamental deterioration. Consequently, the stock quietly becomes cheaper relative to earnings power. For long-term investors, that is a feature. Check Fundamentals of Pace Digitek Limited.
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