HFCL Ltd

- For the new 1,000-acre defense plant in Andhra Pradesh, total capex planned is around INR 600 crores for this year and another INR 250 crores over the next 2 years. - Funding for this capex will be a mix of internal accruals, debt, and equity. - Currently, there is no plan for any partnership or equity dilution related to this defense facility. - Regarding the broader strategic restructuring, the company is evaluating business realignment through a committee; decisions on merge/demerger or fundraising will be communicated accordingly. - No specific mention of immediate or planned large-scale fundraising (debt or equity) beyond the stated capex funding approach was made during the call.

- HFCL is expanding Optical Fibre capacity from 28 mn fkm to 33.9 mn fkm by December 2026; Optical Fibre Cable capacity to increase from 34 mn fkm to 42.36 mn fkm by December 2026. - Setting up a 1,000-acre defense ammunition manufacturing facility in Andhra Pradesh: - INR 125 crores capex budgeted for FY27 (including land and building) - Additional INR 250 crores planned over next 2 years - Facility to produce electronic fuzes, multi-mode hand grenades, and 155 mm artillery shells. - Backward integration investment of approx. INR 580 crores underway for preform manufacturing (300 tons capacity initially, possible scale-up to 500 tons). - Strategic restructuring committee formed to evaluate business realignment for better focus and potential partnerships. - Capex funded through a mix of internal accruals, debt, and equity, with no current plans for external partnerships in defense.

- HFCL expects a revenue growth of around 20% to 25% year-on-year for FY27, building on a base of approximately INR 5,000 crores. - The company aspires to reach INR 10,000 crores in revenue within the next three to five years. - Growth is supported by strong order books including INR 13,483 crores in optical fiber orders and a $1.1 billion order from hyperscalers starting execution from end of Q1 FY27. - Capacity expansions in optical fiber and cable production are underway, aiming for 100%+ utilization and increased output. - Defense and data center segments are expected to contribute significantly, with INR 500-600 crores from defense and INR 400-500 crores from data centers, both with higher margin profiles. - Expansion plans include an ammunition manufacturing facility and increased product diversification. - Overall, HFCL sees sustainable growth driven by diversified order books, capacity enhancements, and increasing global exports.

- HFCL expects a revenue growth of 20% to 25% year-on-year for the current financial year (FY27). - EBITDA margin is anticipated to improve by 3% to 4% in FY27, driven by better product mix and reduced turnkey losses. - Telecom product margins may see some improvement, but the exceptional 40% PBT margin seen this quarter is considered one-off due to product mix. - Defense and data center segments are expected to contribute margins around 20%-25%, slightly higher than the current blended margins. - HFCL aspires to reach INR 10,000 crores revenue in the next 3-5 years from INR ~5,000 crores currently. - Profit growth aligned with revenue and margin improvement; management cautious on specific profit or EPS guidance but expects sustained growth. - Margin expansion beyond 3%-4% per year is considered difficult; the current yield improvement is seen as significant for the immediate year.

- HFCL Limited's total order book stands at INR 21,200 crore as of April 30, 2026. - Export orders constitute INR 12,250 crore, making up 58% of the total order book. - Of these, INR 18,000 crore worth of orders are product delivery contracts expected to be executed over 1 to 5 years, depending on the contract. - Additionally, there are AMC (Annual Maintenance Contract) orders worth approximately INR 3,500 crore, with a duration of 6-7 years. - The order book is sustainable, with regular fresh orders coming in, including spot orders. - New orders of INR 200 to 500 crore size are actively being taken despite 100% capacity utilization. - INR 1.1 billion (approx. INR 8,800 crore) of orders from hyperscalers are expected to start execution from Q2 FY27. - Export order book in aerospace defense is around INR 1,930 crore. - The company is cautious about accepting very large new orders unless capacity expansions are complete.