Shares of HFCL Limited moved higher in early trading on Friday after the company announced a major long-term international supply agreement for Optical Fiber Cables (OFC). The development drew investor attention as the deal represents one of the company’s largest global contracts to date.
The company has entered into a five-year supply agreement valued at approximately USD 1.10 billion (around ₹10,159 crores) through its overseas subsidiary. The contract has been signed with a global multinational corporation for the supply of Optical Fiber Cables, marking HFCL’s first long-term, multi-year OFC supply arrangement.
Under the agreement, HFCL will supply multi-million fibre kilometres of high-quality, high-fibre-count Optical Fiber Cables each calendar year between 2026 and 2028. The contract also includes an automatic extension option for 2029 and 2030, subject to the terms outlined in the agreement.
The purchase orders under this arrangement will be issued periodically based on the customer’s project timelines and technical specifications. HFCL’s overseas subsidiary will also be authorised to supply OFC products to the customer’s affiliates and assignees as required under the agreement.
Following the announcement, HFCL shares gained more than 3% in intraday trade, reflecting positive investor sentiment toward the company’s long-term order visibility and international business expansion.