Yes, thank you. Good afternoon, everyone.

On behalf of Nuvama Institutional Equities, we are glad to host the senior management of HFCL Limited to discuss the Q1 FY27 earnings. We have with us Mr.

Mahendra Nahata, Promoter and Managing Director; Mr. VR Jain, CFO; Mr.

Manoj Baid, Company Secretary; and Mr. Amit Agarwal, Head - Investor Relations.

We'll start the call with the opening remarks from the management and then move to Q&A. Thank you, and over to Mr.

Nahata. Yes.

Good evening, everyone, ladies and gentlemen. I extend a warm welcome to all of you on HFCL's earning conference call for the first quarter of financial year 2026-2027.

I trust you have had the opportunity to review our financial results, press release, and investor presentation, which have been uploaded on the company's website as well as on the website of the stock exchanges. Thank you for joining us today and for your continued interest in HFCL.

With strategic initiatives undertaken by the company, HFCL today is on strong growth path. I'm pleased to inform that your company has delivered remarkable performance during the first quarter of financial year 2027 with highest-ever quarterly revenue, profitability, and the order book.

We have emerged as a global player in optical fiber, optical fiber cables, and optical optical connectivity solutions, defense, aerospace, telecom products, and digital infrastructure field. Each of these businesses address large and rapidly expanding markets, and together they provide HFCL with multiple avenues for sustainable and profitable growth.

We are also encouraged by the increasing confidence shown by our customers, business partners, and the investment community. Over the last few quarters, several reputed domestic and global institutional investors have become shareholders of HFCL.

We sincerely welcome their confidence in the company. We began financial year 2027 with clear priorities: to accelerate growth, improve profitability, strengthen our technology leadership, and execute our long-term strategy with discipline.

I am pleased to state that the first quarter has been an encouraging start in that direction. The quarter witnessed strong order inflows and execution across our core segments, continued improvement in profitability, and sustained progress on several strategic initiatives that we believe will shape HFCL's growth over the coming years.

In our previous earning call, we had outlined our aspiration for delivering around 20% revenue growth during FY27, supported by continued improvement in quality and mix of revenues. Based on the progress achieved in the first quarter, healthy order inflows, favorable industry dynamics, expanding global opportunities, and improving execution capabilities, we, to the best of our estimate, can raise our aspiration for the FY27 to a revenue growth of 40% now.

This confidence is not based on any single order or short-term opportunity. It is supported by multiple growth platforms that are gaining momentum simultaneously and providing greater visibility to our business.

Another very important milestone during the quarter has been significant improvement in our profitability. During our previous earning calls, we had indicated our aspiration of achieving EBITDA margins of over 20% during FY27.

I am pleased to share that the company has achieved EBITDA margin of more than 23.25% in the very first quarter itself. More importantly, this reflects a structural enhancement in the quality of our business led by various initiatives taken by the company over last few years.

A higher contribution from technology-led products, increasing exports, improved product mix, operating leverage, and our continued focus on innovation are collectively driving stronger profitability. Our objective is not merely to grow revenues, but to build a business that consistently delivers sustainable and profitable growth.

Our confidence is further strengthened by the quality of the orders secured during the quarter. We secured several strategically important orders across our core businesses, reinforcing HFCL's position as a trusted technology partner in optical connectivity and digital infrastructure.

Consequently, our order book has strengthened to approximately ₹26,665 crore, which is not only all-time high, but is 5 times of FY26 revenue, providing healthy revenue visibility and supporting our confidence in the growth outlook for the company. I am pleased to inform that global optical connectivity industry has entered a new phase of growth.

Emergence of artificial intelligence, hyperscale data centers, cloud computing, and high-performance computing is creating an entirely new source of demand for advanced optical fiber infrastructure. These technologies require massive data movement at extremely high speed, making optical fiber an indispensable part of the ecosystem.

The telecom network expansion also remained as an important driver. Based on orders received and regular interactions with our customers, we can definitely foresee demand pipeline continuing and market growing for at least next five years.

In parallel, governments across the world are investing heavily in secure communication networks, strategic infrastructure, and offensive capabilities, creating additional demand from the defense and public infrastructure sectors. As a result, the industry today is supported by multiple demand drivers, making the long-term outlook significantly stronger and more resilient than in earlier investment cycles.

In anticipation of the significant opportunities emerging globally, we continue to strengthen our manufacturing capabilities. The expansion of our optical fiber manufacturing capacity from 28 million fiber kilometers to 34 million fiber kilometers is progressing well and will be completed by December 2026.

Similarly, expansion of our optical fiber cable manufacturing capacity from 34 million fiber kilometers to 43 million fiber kilometers and expansion of infrastructure for data center connectivity solutions are also progressing as planned and are expected to be commissioned within targeted timelines. As the board has already approved for setting up of greenfield preform manufacturing facility of 300 metric tons per annum with a capital outlay of ₹580 crore as high-level backward integration for further strengthening our supply chain with incremental fiber manufacturing capacity.

These capacity expansions have been aligned with the orders in hand and increasing global demand and will further strengthen our ability to serve customers across domestic and international markets. Friends, the data center interconnectivity business has created another large opportunity for our optical connectivity segment.

With the construction of hyperscale data centers, demand for connectivity solutions is ever-increasing. With this increasing demand, we are continuously expanding our capacities for the manufacture of interconnect products for the data centers.

The manufacturing capacities including company's subsidiary, STL Limited, is being expanded by 5 times. Even in the first year of production, which is the current year, we expect a revenue of more than ₹700 crore with a clear visibility to increase it further multiple fold in subsequent years.

I'm pleased to inform that based on global opportunities and inquiries for data center connectivity products, the board of directors of the company in today's meeting has approved for an investment of ₹215 crore for the expansion of manufacturing base for advanced data center connectivity products including miniature multi-fiber and super-high-density multi-fiber termination assemblies. Let me come now turn to another exciting opportunity before us: defense and aerospace.

Over the last several years, while strengthening our leadership in optical optical connectivity, we have simultaneously invested in building a differentiated defense business. These investments have been guided by a long-term vision because indigenous development of defense technologies require sustained research and development, product qualification, customer validation, and advanced manufacturing before meaningful commercialization begins.

We consciously focused on building indigenous technologies, strengthening engineering capabilities, and creating specialized manufacturing infrastructure to position HFCL for long-term participation in this strategically important sector. Today, we are beginning to see the benefits of these investments.

The business has developed a healthy product pipeline. Customer engagements have expanded considerably, and we are witnessing increased interest across both domestic and international markets.

The proposed acquisition of aerostructure business will expand HFCL's participation in global aerospace value chain, opening doors for many more such opportunities in the segment. We expect this business to generate meaningful order inflows, creating another important avenue of growth for the company.

The addressable opportunity before us continues to grow. India is witnessing one of the largest defense modernization programs in its history, supported by increasing capital expenditure, accelerated indigenization, import substitution, and the government's continued emphasis on Aatmanirbhar Bharat.

At the same time, increasing geopolitical uncertainties have led many countries to strengthen defense preparedness and diversify sourcing strategies. This is creating attractive opportunities for companies with indigenous capabilities and with globally competitive technologies.

Today, HFCL's defense portfolio expands surveillance radars of different variants, electronic fuses, thermal imaging solutions, ammunitions, tactical cables, aerostructures with proposed and with proposed acquisition and several next-generation technologies currently under development. Collectively, these businesses provides us with strong foundation for sustainable long-term growth.

At the beginning of the financial year, we had shared our aspiration of achieving approximately ₹500 crore of revenue in defense sector during FY27. Based on the current execution pipeline, customer engagements, and order visibility, we remain firmly on track to achieve this objective.

One of the important milestones during the quarter was the groundbreaking ceremony of our upcoming ammunition manufacturing complex in Andhra Pradesh held on 15th May 2026. We were honored that this landmark event was graced by honorable Raksha Mantri of India and honorable Chief Minister of Andhra Pradesh, reflecting the strategic importance of the project and its alignment with the government's vision of strengthening India's indigenous defense manufacturing ecosystem.

The complex is being developed to manufacture advanced ammunition systems including electronic fuses, multi-mode hand grenades, and other specialized products designed to meet the evolving requirements of Indian Armed Forces and global customers. We believe this investment will create significant opportunities for HFCL for years to come.

Products such as these demonstrate the growing maturity of HFCL's research and development capabilities. These reflect our ability to develop differentiated technologies that solve complex operational challenges while reducing dependence on imported systems.

We believe these products will continue to strengthen our competitive positioning in both domestic and international markets. Our long-term aspiration is to build a defense and aerospace business, which over the coming years has the potential to become nearly comparable in scale of HFCL's current overall business.

Given the opportunities before us, the capabilities we have developed, and the policy support for indigenous defense manufacturing, we remain confident that this business will emerge as one of the most important pillars of HFCL's future growth. As HFCL continues to evolve in a diversified technology enterprise, we are equally focused on ensuring that our organizational structure and capital allocation framework remain aligned with the scale and complexity of our businesses.

As communicated earlier, our board had constituted a restructuring committee to evaluate strategic alternatives aimed at simplifying the group structure, enhancing operational efficiency, and unlocking long-term shareholder value. We are actively evaluating various alternatives, and to support this process, we have appointed Ernst & Young as our strategic advisor.

The objective of this exercise is clear: to ensure that our organizational structure evolves in line with the transformation of our business portfolio by enabling each business to realize its full growth potential. While it would not be appropriate to comment on specific outcomes at this stage, I would like to assure our shareholders that every decision will be guided by three fundamental principles: create, which is creating long-term shareholder value, strengthening operational effectiveness, and preserving financial discipline.

We'll continue to keep all the stakeholders appropriately informed as this process progresses. Friends, let me now quickly take you through the consolidated financial performance of quarter one year of financial year 2027.

Revenue for Q1 FY27 stood at ₹1,914.98 crore as compared to ₹871.02 crore in Q1 of FY26 and ₹1,824.12 crore in Q4 of FY26. EBITDA for Q1 FY27 stood at ₹445.27 crore as compared to ₹42.93 crore in Q1 of FY26, that is a more than tenfold jump, and ₹336.93 crore in Q4 FY26.

EBITDA margin in Q1 FY27 stood at 23.25% as compared to 4.93% in Q1 FY26 and 18.47% for Q4 FY26. Profit after tax for Q1 FY27 stood at ₹245.64 crore as compared to loss of ₹29.30 crore in Q1 of FY26 and ₹184.45 crore profit in Q4 of FY26.

PAT margin in Q1 FY27 stood at 12.83 crore 83% as compared to negative 3.36% in Q1 of FY26 and 10.11% in Q4 of FY26. Segment revenue from telecom products to the 85% of total revenue in Q1 27 as compared to 62% in Q1 of FY26 and 85% in Q4 of FY26.

Export revenues stood at ₹1,063 crore in Q1 of FY27 as compared to only ₹210 crore in Q1 of FY26 and ₹1,212 crore in Q4 FY26. During the quarter, the company delivered healthy growth in revenue while continuing to improve profitability.

I'm particularly encouraged by the improvement in the quality of our earnings. The increasing contribution from technology-led products, exports, and value-added solutions, together with disciplined execution and favorable industry dynamics, is enabling us to build a stronger and more resilient business.

Moving forward, our priorities remain clear. We will continue to strengthen our global leadership in optical connectivity.

We will continue to scale our defense and aerospace business into a major growth platform. We will continue to invest in innovation and advanced technology and differentiated products.

We will continue to deepen our relationship with customers across India and global markets. Above all, we will remain committed to disciplined execution, prudent capital allocation, and sustained value creation.

Friends, on behalf of the board and the entire management team, I would like to sincerely thank our customers, employees, business partners, and shareholders for their continued trust and confidence. Your support inspires us continuously, raise our own benchmarks, and strive for excellence in everything we do.

Thank you once again for joining us today. We'll now be happy to take your questions.

Hi, sir. I hope I'm audible.

You're very much audible, Aman.

Yeah. Thank you so much for the opportunity, Mr.

Nahata, and congrats on a great set of numbers. Sir, I just wanted to understand, we have recently announced an investment of ₹215 crore, and we are already doing a preform capex as well.

What would be our total capex for this year and next year?

Total capex of this year and next year, I can tell you. This year total capex is ₹640 crore, which includes part of the preform, then the towers, three towers which we are adding, increasing the manufacturing capacity of fiber from 24 to 30 million fiber kilometers.

Sorry, 28 to 32

34

fiber million fiber kilometers. IBR lines, which have been already been ordered and under delivery, ₹60 crore.

In our subsidiary, this data connectivity business of ₹65 crore. In defense sector, ₹100 crore.

Today what I announced, ₹215 crore, out of which ₹100 crore will be spent in this year. Total would be ₹640 crore.

Next year would be about ₹615 crore, out of which ₹325 crore will go to preform, and ₹175 to defense, and ₹115, balance of 215, would be in data center connectivity solutions. That would be ₹615 crore.

Got it, sir. That's great.

Sir, my second question would be as you mentioned that this year you are targeting around ₹500 crore of defense execution, and when I see that our telecom product business, our revenues on a sequential basis are holding up really nice. If I just annualize that number, our annualized revenue comes to around ₹9,300 crore.

That's a significant revenue growth versus what you are guiding as 40%. I'm just trying to understand when you're having such a large tailwind, why are you being so conservative?

Look, I have not gone into this calculation of ₹9,000 crore or so, but I can tell you one thing. We had talked of 20% growth in revenue in the last call, and looking at the business potential and all that.

Now I say we'll grow by 40%. It is always good to be conservative, no?

If I promise you one and give you two, you would be happy. If I promise you two and give you one, then you are unhappy.

That's great, sir. Sir.

That's it from my side. All the best, sir.

Thank you.

Good evening, sir. Thank you so much for the opportunity, and congratulations for good set of numbers.

I think we have really did well. Sir, my first question, what is that global scenario on the pricing side, especially in data center and telecom side?

I think we have variety of products, like premium side, more than 1,700 fiber counts, and we have 3,500, we have 6,900 counts. I'm trying to understand what is the pricing level for higher fiber count cables and specialized cables compared to standard 288, 432 fiber cables for telecom product side?

I think international market, we have seen a higher realization compared to domestic market. I think recently we have got one of that biggest export order for data center for hyperscalers.

Could you talk about overall scenarios and earlier the pricing range in the ₹1,200, ₹1,300 per fiber kilometer. What is the current trend on that pricing side?

As we are talking about 40% growth, whether if you could quantify how much we can expect on the realization side and how much we can expect to volume growth side?

Bala Subramaniam ji, you have asked so many questions in one question that it's difficult to remember also what you asked. Anyway.

The fiber realization price depends on various things. There's no standard.

For telcos, the fiber is different kind, A1 fiber with 250 micron. Data centers is A2 fiber with 200 micron or even less.

Price differs significantly. A range I can give you.

Range could be starting from $18 for fiber kilometer to $28 fiber kilometer. It all depends upon what fiber count, what kind of fiber size, what kind of fiber, all depends upon so many things.

I can only give you a range. There's no particular number I can tell you that this is the number.

Range you can say from $18

to $28. That is international market side, sir?

International market side, that's what I'm saying. Depend who is buying, what kind of fiber he is buying, how many count of fiber he is buying.

This is all very very dynamic. Again, whether they're long-term orders, short-term orders.

There's no particular fixed price I can tell you. Yes, international market, data centers you're talking about, you can take somewhere between $22 to $26, $28 depending again upon what kind numbers and what kind of quantities and all that.

Telcos could be little lower because they are different kind of a fiber. There's no fixed thing as such.

This all varies with type of fiber, quantity, longevity, and long-term contract, all those kind of different things. Certainly, prices have gone up quite a bit, significantly in last six months.

Sir, my second question, on that project side I think earlier

mentioned about the Army project that things will realize from Q2. I think we can expect ₹170 crore AFC revenue from that brand.

We are on that track, sir? Sorry to interrupt, Subrahmanyam, Bala Subrahmanyam, you're not audible.

Could you speak closer to your microphone? Yeah.

Sir, on the project side, earlier call, it's mentioned about the Army project, the things will realize from Q2. I think we can expect ₹170 crore AFC revenue from that brand.

We are on the track, sir?

Yes, we are on track. From Q2, it should be possible.

It is in the final stage. I think another month, it should happen.

We can expect the large production from Q2 onwards.

I would say Q2, mid of Q2 or yeah, something like that or maybe a few days here and there. These are government things.

Things can always change by a few days, a month. Yes, sometime mid of Q2, you can say.

Sir. My last question is on that margin side.

I think last three quarters, we are maintaining nearly 30% kind of margins for telecom product side. Right now, we are on that 80%, 85% kind of mix.

Whether we should assume same kind of mix the entire year, and what is the sustainability of this margins over the next two to three years?

I think sustainable because we know our raw material prices, we know our sales prices where there are long-term contracts. I think the margins are sustainable.

Thank you. Sir, good evening.

Congratulations on significantly better-than-expected results. Sir, couple of questions that I had.

The first one was, sir, in this quarter, was there any higher-margin orders? You're saying margins are sustainable at these levels.

The quarter's performance, is it sustainable going ahead, sir? Was there any one-time large execution of an order which is not sustainable in the next quarters, anything like that?

Mr. Kush, first let me ask you a question.

You said that margins are better than expected. What did you expect?

Sir, it won't be fair on my part to answer that question, but significantly better than at least my expectations.

I was joking. Just joking.

As far as the margins are concerned, Kush, these are sustainable. There's nothing called a particular high-value or high-margin order which we executed.

These are the average orders, average prices on all the orders, which should continue possibly throughout the year. There's no kink up and down in any of this margins.

It's totally sustainable.

Sir. Let's say if you take a three-year view on the business, with super cycle in the optical fiber for data center business, how are you seeing a three-year outlook if I may just ask on the pricing environment, the supply-demand environment?

Look, I will give you a five-year outlook. Why three years?

Three years is a no-brainer. Even five years is no-brainer.

Contracts are now getting signed for 10 years. You would have heard that Molex signed a contract distribution for 10 years.

Five-year outlook, as far as I can understand, there's not going to be any let-up in demand. Demand is going to increase.

I give you the reason for that. Right now, if you see, most of the expansion is taking place in North America.

If you compare India as an example, India's total capacity is, I think, 1.5 GW. In 3 years, we are expecting it to become 3 GW.

US's current capacity is about 150 GW, and in 3 years, it is expected to be 300 GW. Europe, the situation is similar to India, very low growth.

Southeast Asia, Middle East, very low growth. Now growth is starting to pick up.

Middle East at the moment is a different kind of environment. I would not venture into that, but minus that, they are picking up the data centers construction.

India is picking up good data center construction. Europe has to pick up.

They cannot be far behind US. They can be behind, but can't be far behind US.

World over market of data center creation is going to go up and up. The kind of data flow which is required, massive amount of data flow is required, fiber optic is the only solution.

There is no other solution in the world available today. Demand of fiber optic cable is going to increase only.

US will have a huge amount of demand. The places where data center construction have now started, for them to reach to a level of buying fiber, they will take 1 year, 2 year kind of a time frame.

This demand will continue for at least 5 years and maybe more than that. 5 years, I can see a clear view that demand is not going to go down.

Sir, if you can give a view on supply also, especially Chinese supply, which may not be going to US immediately. Sir, in a five-year horizon, whenever there is a large supply-demand gap, probably then suppliers also catch up, sir.

Any view on the supply?

Look, you asked a question on China. Right now, as US is the largest market.

Now, in the US, China, one, I don't think there is an administrative order not to buy from China, but there is an administrative advice that administration is not in favor of buying from China. I was with one of the customer whom I will not name in US 2 weeks ago.

When we talked about China, they said, "Look, our administration is not in favor of our buying Chinese fiber." This was a major hyperscaler.

Now, question is, what would happen to China increases capacity? One is unwillingness to buy from China, then high duty on China.

Today, there's a 35% duty on Chinese fiber, anything you import from China in US. In any case, the competitiveness of Chinese fiber goes down when you compare with us because of the higher amount of duty, 10% versus 35%.

Supply, yes, would increase, but demand would also increase, as I can see it. Now, the another sector of demand which has come for defense industry, this fiber optic drones.

Today, there is a demand of almost 70 to 100 million fiber kilometers of fiber for A2 type of fiber for fiber optic drones. This demand is going to increase because till now, only those countries are buying fiber for the fiber optic drones which are in war.

Now, slowly every country is realizing that radio-controlled drones are not good. They can be controlled by jamming their frequency or such different methodologies.

People are using optical drones. Drones are the new fighting machines, as you know.

No longer guns and all that, artillery and all that. Drones are become increasingly popular.

Every country is now preparing for fiber optic drones. There is a huge new demand opportunity has come up there.

Supply is going to increase. Now, China, I would not worry much as far as US market is concerned, which is the major market at this point of time.

Southeast Asia, yes, China would dominate. Middle East, Europe, we have always been competing with China in telecom market, and we will continue to do so for the data center market also.

Because our capacities are also now big enough, world-class capacities. It's not that we don't have economies of scale.

We do have economies of scale, and we will be able to compete.

Okay. Sir, is the cost of production in India and the cost of production in China with the duty, is it significantly cheaper than to procure from India?

No, I don't procure anything from China.

No, sir. Not you, sir.

Your customers. No,

today, US, for example, many of them don't even consider procuring from China. Forget about prices.

Okay.

Okay.

Today China is not cheaper, that much I can say. Even if somebody wants to procure, it's not cheaper.

The...

I don't procure

cable... yes, duty...

Hi, sir. Thank you so much for the opportunity, and congratulations on great set of results.

Sir, I have two questions. First, if you could help understand more on the long-term contracts that you have won on the optical network side.

Are these fixed price in nature or what kind of mechanism, because your orders are 3 years, 4 years out kind of orders. What kind of pricing mechanisms do they have?

In one of your comments, you did touch upon the fact that on the raw material side also, we have kind of fixed contracts. If you could elaborate a little bit in terms of kind of inflation that you are seeing on the raw material and whether that could have any impact on our margin performance.

Look,

most of the long-term contracts, whether raw material or the sales, have a variation clause on a yearly basis. Yearly basis, prices are rediscussed.

In between, if there are large variations, then that would also be discussed. There, if there are large variations, which I don't anticipate, but if the yearly reset of the prices is always there.

Depending on the market condition, also there are reset clauses. That opportunity has still not come because this contracts are not even year old.

I cannot say, but that the sales contract, would there be any reset or not. Yes, there was reset in between when US imposed 50% duty.

At some point of time, there was reset. Customers paid large part of that duty.

Good thing is that the duty has been refunded and we have paid them back.

Right. Got it.

In terms of both on the supply side, the raw material side, or on the demand side, it would not lead to any major impact on our margins, is the reading that I'm taking from here, because there would be some form of pass-through. Because,

I tell you, it's the both sides. Sales price will increase if the raw material price increase significantly.

Significantly, I'm using the. If there is a 5% increase, customer is not going to increase 5%.

It's not a moving thing. If there is a significant increase, then we go back to the customer.

If there is a significant decrease, customer comes back to us. This 50% example I gave you, when there was 50% duty position, now I could not take the 50% duty.

Customers helped me, and they were very helpful. When the duty has been refunded, we have paid them back.

Got it. That is very clear, sir.

The second question which I have is on the new pillars of growth which you alluded to, which is the defense and aerospace business. If you could give us some kind of visibility in terms of any product approvals that have been achieved in the defense business.

Second, in the aerospace business, by let's say FY28 or '29 and defense business, what kind of execution or top line do you think that we would be able to achieve in these two businesses, each of these businesses?

In '28-'29, I think, this is '26-'27, '27-'28, '28-'29. '28-'29 in defense and aerospace business, we should be crossing ₹3,000 crore at least, and the year next to that, our target is ₹5,000 crore.

So '28-'29, we should be ₹3,000 crore plus because we are right now including one of the acquisition which we have signed and which is in process of getting completed, acquisition process in advanced stage. Including that, we will definitely cross 3,000 because in that, we are in negotiation for larger contracts for export also.

Currently, the order book for export is roughly about ₹2,200 crore. We have been shortlisted for a major contract for modernization of BMP-2, and we have submitted the modernized sample also.

I would like to say that, but is the fact, that in the internal trials, our equipment has been found to be the best, how we have modernized. Again, that is internal trial, not Army trial.

Army trial has started from 20th. Trial should be completed in about 1 and 1/2 months, then the winter trial, and then the orders takes time, but I am quite hopeful on that.

Aerospace order, land system orders, I believe that 3 years time, I've given to myself for ₹5,000 crore.

Got it. This year at least, we should see order inflows starting to come through in a meaningful way for both these segments?

Yes. I agree with you, meaningful way.

For our indigenously designed products, we have now different kind of radars and sensors we have integrated by a C2 system, command and control system. We are going to give demonstration to Army Northern Command sometime in the month of September as a integrated system.

Moreover, you must have heard of Home Ministry's listing for securing the borders bordering Pakistan and Bangladesh through border protection system. There also, the products which are designed are going to be quite significant use.

There also they are talking about POC, proof of concept. There also, we'll be working with them to work on a proof of concept, which BSF is organizing.

All these places, we expect reasonable amount of orders to come to us.

Got it, sir. Sir, just one last question on...

Good evening, sir. Nahata ji, first of all, highly, highly congratulations, and your tone of confidence in opening remarks was excellent.

The way you've put in so many efforts in last so many years are now coming to show, and we are very well-placed. Sir, my question was more regarding the optic fiber cable market, which is projected to reach around $21 billion by 2033 because of this driven by hyperscale data center and surging bandwidth demands of artificial intelligence.

What we see that there are many international players from Italy and Japan and all who are increasing capacity like Prysmian and Corning and all. How we look HFCL on that side after this capacity, which may come up?

Because Prysmian is spending around $1.5 billion to double their capacity. What is the thought process on that, which can help us a lot to understand the growth path?

Sanjay ji, first of all, thank you very much for your compliments. Look, we are also increasing our capacity.

We are also world-class players. We started with 8 million kilometers of fiber capacity.

Now today, we are going to be 34 million very soon. Cable, we started something like 10, 12 million.

I am talking of these recent years, not old. Old days was much less.

Today we are going to be 45 million. Last two years or three years, every month, we are increasing capacity.

I don't think that this 34 million kilometer of fiber or 45 million kilometer of cable is end of it. We are constantly reviewing that.

As we receive more orders, as we receive more demand, as we receive more inquiries from customers, we are constantly reviewing that, and maybe we will have to further increase capacity. I am not denying that.

I am not saying that we will, but this is under constant review. If necessary, we will also increase the capacity.

No doubt that we are receiving large number of inquiries at this point of time. As I talk, we really do not know whom to say yes or whom to say no.

I'm really telling you. If I say yes to one, I have to say no to other one.

That has become the situation. We are really keeping a very close watch, and maybe in near future, we may have to decide to increase our capacities further, which I'm not saying we have decided, but we may have to.

That's great, sir. How about the pricing?

Because all this capacity come up, then there could be a flood of supply. Is that true what I understand?

Look, flood of supply, I tell you one thing. There are two major issues out here.

One, technology. The data center operators are not buying normal fiber optic cables.

For example, they're buying 7,000 fiber cables. Now, how many of fiber optic cable suppliers have that kind of number of fiber cable?

Only very few, handful. India, we have 20 suppliers for fiber optic cable, but there are only two who can manufacture this kind of cables.

My other friend may say that I do not have, but I have. There are only two.

So 18 do not have. If you look that kind of a number, there will be only very few people who have that kind of a capability to develop and supply those kind of products.

Then you have further changes in technology also coming up. Technology is not going to remain constant.

For example, multi-core fiber, hollow-core fiber, all these are coming up. We are developing hollow-core fiber.

Now, there are how many people in the world who are developing hollow-core fiber? This is also a question of technology, number one.

Number two, a reputation in the market. Look, number of other people also, are connected with the hyperscalers who are already supplying to them.

We will have a long-term relationship with those guys. We have signed a 5-year contracts.

When more demand comes up, naturally, they are not going to be changing their suppliers unnecessarily. Just because demand has gone down, maybe they buy less from us at that point of a time.

As I said, I don't expect demand to go down for next 5 years at least. Capacities are not going to be matching the increase in demand.

Demand is still going to outstrip the capacity for 5 years at least, I can see.

Sir, on technology side, can we take HFCL at par with the global players? Oh,

yes, absolutely. 7,000 fiber cable we have already developed.

We are now developing 14,000 fiber cable. Maybe there is a difference of 2, 3 months here and there.

That can always happen, but not more than that. Hollow-core fiber, yes, Corning has already done higher amount of work in hollow-core fiber than others.

We are also doing. By the time hollow-core fiber becomes somewhat commercial, it is right now thousands of dollar per kilometer.

It's not even worth considering. By the time it becomes somewhat commercial in any quantity, we would also be coming up with the hollow-core fiber.

We are already in development phase with IIT Delhi for hollow-core fiber, IIT Delhi and one of the government organization in Kolkata, which already had a tower for manufacturing hollow-core kind of a fiber. They're already working on that.

We are staying in forefront of technology. Now, another point.

Unless we were in the forefront of technology, we'll not be receiving a billion-dollar contract kind of a thing either for the cable or for connectivity solutions. We recently received a contract for how much?

₹500 crore. Now, another thing I must tell you.

Connectivity solution has also emerged as a very large market. Very large market.

It's not small. It is going to be almost as near about as big as the higher-line cable market.

Because you need as much connectivity solutions also, and that is more value-added product. Because you buy connectors, you cut into pieces, you connectorize them, and you send them, which is all a manual process.

Where there is a higher value addition. It is also a very high-potential market.

What your company is doing? I am increasing my capacity for connectivity products by 5x.

In less than a year's time or, let's say, a year's time progressively, my capacity would be 5 times more than what it is today. Because that's a major market which is emerging now.

Where the size is going to be very, very big, billions of dollars worth of market. Because if you need data, if you are a data center, you need connectivity solutions.

Then what also we have done, not only cable or cable loops and all that, we are also have developed all kind of products for passive connectivity solutions: plastic boxes, cassettes, jointing boxes, and all that. We can be one-stop shop for all connectivity solutions for a data center: cable and all other products which are plastic trays and cassettes and all that which are required inside data centers.

We will be one-stop shop. It's going to be entire set of connectivity solutions.

That is another leap we have taken in this business.

Hi. Thank you, sir.

Thank you for the opportunity, and congrats on a good set of numbers. The first thing I wanted to understand was with respect to your comment on the margin and the margin guidance of around 20%, you mentioned that for the telco...

Can you just be near the microphone and say that again?

Sure. Can you hear me now better?

Yeah.

Okay. I was saying that with respect to your comment around the margins, you mentioned that the margin on the telecom business would be sustainable at 30%.

When I think about the overall guidance of 20%, is there any seasonality we need to take into account, because this quarter, we've already done about 23% of EBITDA margin.

Your voice is a bit echoing. Just let me

ask him. Can you

give him a mic? Voice lot of echo, it doesn't come out.

Is it better now?

Say that again now. Mr.

Manik, go ahead.

can you repeat?

Your voice is echoing, so that your voice is particular kind of echo, it's not good. Say that again.

Let's try again.

I'm saying that with respect to the margins, if you can share whether we should expect some seasonality on the overall perspective because we've already done 23% and you're guiding for 20% for the full year.

Will there be any seasonality in telecom margin or is it sustainable?

You are saying that is there any seasonality in telecom margin or is it sustainable? Is that the question?

Because the full-year guidance is 20%, and this quarter you have already done 23%. I'm trying to understand why is the full-year guidance lower than the quarterly guidance.

I understood. Look, no seasonality.

Reason being, as I said in one of the previous question's answer, that this 23% margin is out of the normal average contracts which we are executing and which we would be executing throughout the year. These are the average contracts which more or less will remain same throughout the year.

There's no seasonality at all. Seasonality is not there.

This 23% margin is something minimum we would be able to protect, to the best of my information at this point of time, out of the orders I have, raw material costs I have. If there is some geopolitical situation happens and something changes which is not in my control or your control, some people close Suez Canal and deliveries become delayed and any such thing happens which I cannot control, I cannot say.

Whatever is in control of our business is, this will be having no problem.

Got it. That's helpful.

Just one more follow-up with respect to the greenfield preform project. How does that alter the company's overall return profile and the margins profile?

Look, that project would mean, I think you asked about the preform, isn't it?

Yes, that's right.

Preform project is designed for the two perspectives: one, bringing more sustainability in the raw material supply chain because we would need a lot of preform and that lot of preform, some parts should we be able to manufacture. That is one part of it, that it would bring in more sustainability in the supply chain.

Number two, the make versus buy analysis. When you make, make is at least, I would say, 30% cheaper.

At least 30% cheaper as on today. Now situation might change 5 years down the road, I don't know.

As on today, make is 30% cheaper than buy. Raw material costs would go down for preform to that percent.

Now in a fiber, 70% cost is preform, 65% to 70%, you would say. Fiber cost would go down by 18% to 20%.

When you go to cable, then, cable fiber constitutes about 60%. Total of the total cost, roughly about 45% is, you would say, is preform.

Total there would be 10% saving in raw material cost, something like 10%, 12%.

Hi, sir. Thanks for the opportunity, and congrats on another great set of numbers.

Sir, firstly, we had some unbilled revenues at the end of quarter four FY26 and expected this to be billed in quarter one. What is the update on this?

No,

it has been billed to the major amount of ₹300 crore which has been billed.

Great. We had also said that the $1.1 billion order that we got from a hyperscaler would only start execution from the end of quarter one FY27.

My question is, do we expect to sustain this kind of revenue of ₹1,900 crore that we've seen in this quarter in the coming quarters? Because H2 is generally a stronger half, or is it possible to see a quarter-on-quarter decline?

No, there is not going to be quarter-on-quarter decline. 5% or 10% here or there is very difficult to predict.

Generally, we should be able to maintain roughly about this kind of revenue. Profitability, I would say, also not decline.

Profitability will also be remaining, to the best of my estimate, will not be inferior than this. Better, how much, I cannot say.

Will not be inferior to this, in my opinion.

Hello, sir. Congratulations on a great set of numbers.

My question was regarding the order book that we currently have. Could you throw some light on how much of this pertains to the defense part and how much would be from the optical fiber cables?

Look, optical fiber cable is roughly about ₹16,000 crore. Defense part, including the acquisition which we have proposed.

If I take that into account, then it would be roughly about and which is not included in this 2,600. Let me tell you, it's not included in this ₹26,000 crore, but I would take it as my order, because that acquisition is already final stage of completion.

If I take that into account, then order book would be something like ₹2,300 crore or so. Without that, it would be about something like ₹300 crore or so.

One should take that into account because that acquisition is almost done.

All right. Out of this ₹2,600 crore, if I understand correctly, currently only ₹300 crore of defense order is included.

Additional acquisition is over and above that.

₹1,000 crore.

₹1,000, sir. All right.

If you could help me with what kind of revenue breakup in the telecom segment do we see with OFC and the data center solutions that we have been providing?

Look, the data center solution business, Khushi, we have started this year only. This is the first year of data center business.

First year, I think Q1 would have been about ₹100 crore or so, I think, something like ₹100 crore, maybe a little bit here, there. The full year, we are looking at ₹800 crore number, roughly about ₹800 crore number.

This is the first year of data center connectivity business. As I said a little while ago, I am increasing this capacity by 5 times.

5 times. I don't want to multiply this 800 number by 5 times for that, but there is going to be significant increase in data center revenue in time to come.

This is the first year of data center connectivity business. You must understand that.

Still, we are going to get about ₹800 crore of revenue from that business. We already have almost ₹850 crore plus orders in our hand, and we are receiving more orders for that.

Capacity is being expanded by 5 times.

All right. Just one last clarification...

Hi. Thanks for taking my question, and congratulations, sir, on a great set of numbers.

I had two questions. First was on your segmental assets.

I could see about a ₹1,000 crore increase on the telecom side on the asset side. What is this capitalization related to compared to Q4 FY26?

Just a second.

It is aligned with whatever main capex we are having or the incremental revenue we are having, the asset is increasing. No, no, he is asking fixed assets, VR.

No, fixed assets,

the overall assets

he's talking about. You are talking current assets plus fixed assets or only fixed assets?

Overall assets he's talking of.

The segmental assets that you disclose, which is telecom products, defense products, so that has gone from about ₹3,978 crore in Q4 to about ₹5,000 crore. There is a ₹1,000 crore addition.

I believe our capex would still to come online, the expansion, or part of it is online already, the fiber cable expansion?

Fiber cable expansion is already happening. Preform has not yet started.

Fiber and cable expansion is already happening. Just let me see the numbers.

It includes all the assets, whatever capex we are incurring or the receivables side, the inventory side, because everything is being built on the incremental revenue now. Keeping in view the revenue in progress month-on-month basis.

It is,

it is, it is... It is a sum of all this.

Fixed assets plus working capital. It is all put together.

Not only fixed assets.

It's receivables also, which might have gone up, basically.

Yeah.

Inventory, receivables,

fixed assets, it's a mixture of all.

Understood, sir. Sir, secondly, on the EPC product project, you had guided that we will be profitable this year.

So...

One second, sir. One second.

Net increase is just ₹400 crore. You see at the segment liabilities also of telecom product.

That has increased by ₹600 crore roughly. The net increase in the telecom asset side is just ₹400 crore only.

It's not ₹1,000 crore. It's a net increase in ₹400 crore.

Okay. Understood, sir.

Sir, on the EPC side, the profitability we were guiding for profitability in FY27. Is that still on track that for full year FY27 on the EPC side, we will see some profitability this year or breaking even?

EPC side, one of the major downside was this Army warranty period where we were supporting Army network without getting anything. Which we expect to be signed in the Q2, which I earlier said, and which is on track to be signed on Q2.

Post signing of that, revenue from EPC would increase and loss would significantly come down. I don't say that there will not be any loss, there may be some.

There may be some, but may not be also. It's very right now too early to predict, but it will significantly come down, no doubt about that.

Hello, sir. Am I audible?

Yeah. Sure, Mr.

Tej.

Thank you. Thank you so much for the opportunity, and congratulations on a very good set of numbers.

Sir, my question is again on related to margins. I understand, sir, probably at least for let's say the upcoming six months up till December, we probably able to maintain this margins.

My question is let's say once our preform cost revises at the start of the next calendar year, how would we able to maintain the current margins given let's say our older contract were at a very lower price, maybe let's say lower than the current market price of the preforms? Once the preform contract revises to a newer price, how would we be able to maintain margins after Q3 of this year?

Look, some preform contracts are long-term, which are going to be surviving beyond this financial year and maybe almost towards the end of this coming financial, almost. We have taken adequate steps to not to let preform price for the most of our quantity to increase any significantly because we would be manufacturing our own preforms also.

Impact would not be any serious impact on the profitability. There may be couple of percentage here and there, and that would be offset by the increasing the prices on the customers with the kind of demand we have.

I don't find any reason why the customer price will not increase. The number two, connectivity solutions where the profitability margins are a little better because of it has got much more value addition from the cable than you cut it, connectorize it, and then ship it.

All that would be balancing each other. Overall margin profile would still remain the same.

Understood. Then, sir, if you could help quantify some, when you say some, what part of contract or how much of the contract is extended to the next financial year as well?

I will not be able to go in that much of detail. These are some NDAs and company confidential.

Yes, as I said, margin profile will not go down because better price realization from the customers, better value-added products, and quite a significant part of preform price not increasing. Whatever increase is there will be offset by the more value-added products and better price realization.

Overall margin would not be impacted. That is what I'm emphatically telling you.

Hi, team. Am I audible?

Yeah.

Yes, yes. Congratulations, sir, on a good delivery in this quarter.

My first question was regarding the hyperscale contract that we have. Is it regarding the supply of optical fiber cable or data center interconnectivity products as well or a mix of both?

If it is regarding only optical fiber cable, do we see any complementary demand coming for the data center interconnectivity products as well for the same contract? Has the execution of the contract started, as you said it might start from the end of 1Q of FY27 in the last call?

Look, we have both orders, but separate orders for cable and separate orders for data center connectivity solutions. A single order does not have both.

Different orders from different customers are there, which are cable and data center connectivity solutions, both. More data center connectivity solution orders as well as cable orders are expected from different hyperscalers, not one, but different hyperscalers.

We are negotiating with a number of them. Maybe another month's time or maybe less than that, we may have more orders coming up.

It is for both, to answer your question. The delivery for both data center cable is going to start probably from now.

Yes, this month, it should start. The connectivity maybe a month later.

Okay. My next question was regarding the as per defense revenue aspiration that, I guess, in the opening remarks, you said we would be doing ₹500 crore of revenue in this particular year.

Is that correct?

Just wait. Just a second.

I was answering your question, and you started in between. Data center, you asked a particular contract that I said, yes, we will start a particular kind of a miniature solution, which we call it MMC, from the next month or so.

Otherwise, MPO cables and all that, the delivery has already commenced. That is already on.

That's what we said we made about ₹100 crore revenue in the first quarter, and overall year revenue, we expect around ₹800 crore. Next question.

Yeah. My next question was regarding the defense vertical.

In the opening comments, you mentioned that we would be doing ₹500 crore of revenue in the defense vertical. Did I heard that right?

You heard it right. Absolutely right.

Yeah.

Is it including the acquisition that we would be doing or...

Yes. You're right.

Absolutely. Okay.

When do we expect the acquisition to be complete?

Within this calendar year. Within this calendar year.

Calendar.

Can we expect the consolidation to happen from the 4Q

of

FY27? Yes.

Yes,

yes.

Okay. Thank you, and all the best for your future.

Thank you.

Hi, sir. Congratulations on a good set of results.

My question is basically on the data center connectivity total addressable market. Basically what is the target when it comes to the new MMC and the SN-MT facility?

You have stated that 2.7 lakh assemblies per annum. What kind of global spend on this product category are you underwriting?

What share do you expect to capture?

My

another question is on the concentration of the private order book, which is around ₹16,000 crore. What is the expected timeline for the entire ₹26,000 crore order book?

How many years will be taking in order to complete this order? What is the schedule for FY27?

Yeah.

Look, this ₹26,000 crore orders, there are various orders of various kinds. The fiber optic cable orders, which are, 5-year contracts.

There are, BharatNet kind of contracts, which are 3-years contracts. O&M, O&M contracts are 7-year contracts.

You have different, but out of ₹26,000 crore, I would say ₹22,000 crore or so would be within 5-years period.

Within 5-years period. That is asked by other participants.

Yeah. So ₹22,000 plus would be within 5-years period.

It would all be executed within 5 years. More orders are always being received.

As we execute, we receive more orders. That is how ₹26,000 crore is the all-time high order book for us.

It's all-time high order book. This quarter has been all-time high order, all-time high EBITDA, all-time high revenue, all-time high PBT, all-time high PAT.

This is what I would like to mention again. For ₹16,000 crore, which you mentioned just now, the ₹16,000 crore you just mentioned just now,

these are

orders for fiber optic cable, and it again varies from 3 months to 4 years kind of a contract. It will be executed accordingly.

Okay. Thank you, sir.

Nahata, Nahata ji. Congratulations on all-time best quarter, and thank you so much for a great performance.

I had couple of questions. One is on the spot price of the optic fiber cable side.

How is the trend generally? I know overall we are getting very high prices, but still that momentum is continuing?

Are we still getting great and better prices on the spot side? Are they falling, or you are seeing the growth continue?

No, spot prices are not falling at this moment. Spot prices could be a little better.

Remember one thing: there's nothing called spot. There's no fiber optic cable which is standard fiber optic cable.

It is always made to specs. Everybody needed different kind of specs, most of them.

Any spot would also be 4 to 6 months. Anyway, such kind of spot prices would have some better pricing, some 5%, 10%, 15% depending upon buyer.

Would have better pricing than a 5-year contract, 15%, 20% better.

Right. Got it.

Sir, second question on the capacity side, the capacity expansion that we have been doing, what is the status of the IBR optic fiber cable capacity and what is the timeline, status of that? Secondly, sir, we are developing the high-density fiber cable.

Where are we on that? What are the timelines on that?

Just wanted to get a sense of those. Now

as far as IBR is concerned, we already have capacity of roughly about more than 14 about 14 million fiber kilometers as much as I remember. 12 machines are there, 14 million fiber kilometers.

Which is being expanded every month. Every month expansion is happening.

Expansion is every month business. This capacity will keep on increasing.

What was your second question?

Density fiber cable. I know we had 9,000 and 14,000.

Those numbers we are developing those cables. Where are the timelines for that?

Do we expect them to commercialize? No,

no, what do you mean by density commercialization? 3,000...

Sir, you had said 7,000 fibers in a cable...

Already we have selling. For US market, approval is under process.

Some other market, we have started selling.

Right. Sir, what about 14,000?

14,000,

under development. It will take another 2 to 3 months.

Right. Perfect.

Thank you so much.

Hi. Good evening, sir.

Firstly, congratulations on a great set of results. I think great is also an understatement for your results this quarter, sir.

Hope that this continues. Sir, just wanted to understand from the debt side perspective, how do we see that increasing with such a high level of growth we are doing?

Comment a bit on the level of debt you want, the working capital cycle, sir. How would that be, sir?

Look, the debt-equity ratio is very reasonable at the moment, 0.3. 0.3.

0.3. So 0.3 is there cannot be any more comfortable debt-equity ratio than that.

And... It will remain in this range.

It is likely to remain in this range only. It's not going to increase further than that.

So 0.3...

Yes, sir. Yeah.

No,

no, just sir because we'll be doing a lot of capex, right? In terms of cash flow generated, how should we look at it, sir?

There will be internal generation also. Part of debt will keep on being paid as well, because every month, we are paying.

Finally, the ratio would remain around 0.3 only.

The ratio will remain around 0.3, right, sir? Sir, just wanted to understand due to monsoons, is Q2 quarter that can have slight decline, or how do we just see that, sir, as Q2?

Look, total revenue, most of the revenue is coming from fiber optic cable, and that, too, from exports. Exports, US doesn't have monsoon.

Don't worry. Okay.

Sir. Quarter-on-quarter, we can see the same run rate going on, sir?

More or less. Now 10% here or there, I would not say anything on that.

More or less it will remain, and as I said in the beginning of my statement, that earlier we had talked about 20% growth in revenue in the whole year. Now we are saying that, compared to last year, we are, to the best of our knowledge and estimate, we are saying that the growth would be 40%, not 20%.

Sir, thank you so much for giving me this opportunity. Congratulations on an amazing set of results, sir, especially on the optical fiber cable segment.

Actually, we're exceeding the expectations that everyone has set up for our business. Sir, I had some questions regarding this defense piece, especially the restructuring part.

Based on our understanding, we have transferred the entire defense vertical into HFCL Advance Systems, correct, sir? Hello?

No, no,

no. It's not the entire.

Ammunition business, electronic fuses, those are still remaining in HFCL. Our board is considering that with the consulting from E&Y advising us.

We are doing that work at this moment of time, that how to restructure to the best interest of all the shareholders, all the stakeholders, and to maintain profitability or increase profitability and revenue both. Each sector of the business gives better revenue, better profitability.

That's how we are organizing.

Right. Sir, but is it fair to say that for the recent acquisitions that we made of rescue firing device, and similarly other thermal weapon and all business, where we have some ₹1,900 crore of order book, we have transferred that business to HFCL Advance System, right?

Ammunition will be on our business for us. I think we have not started the production or anything for that business.

That HFCL, which is a subsidiary of HFCL, it's not

a

of business. It is transferred into a subsidiary.

Sir, but the question that is coming from my end is we have diluted a significant extent of that particular defense business. Now HFCL Limited, whereas we as minority shareholders are invested into HFCL Limited, owns only 51% stake in that business.

Wait,

wait. You are not realizing one thing.

There's not dilute. We have acquired business also.

Aerospace business we were not in. We have acquired that business.

With acquisition of that business, which already has an order book of more than ₹2,000 crore and expecting orders of another ₹2,000 crore, it's not a dilution. Dilution with acquisition.

Any acquisition you do, you have to have some dilution. You are getting huge amount of business together with that.

Hi, sir. Congrats for an amazing set of numbers.

Also would like to thank you for the opportunity you gave for the plant visit which I came to Hyderabad on 12th of June.

Did you like that?

It was a very great experience.

Thank you.

Yeah. Sir, yeah.

My question will be regarding preforms. We will set up the manufacturing which plant for the preform manufacturing?

We are in process of deciding, and within this month, we'll decide which exact location. We are considering two, three different locations, and one of the location, we'll decide and set up.

Okay. What will be the capex for that?

Right now, the board has approved ₹580 crore.

Ask two questions, please,

huh?

Rest of the questions, people can interact with our Investor Relations Head, Mr. Amit Agarwal.

Last two gentlemen question, I can take.

Hi. Thanks for the opportunity.

Just one question was on the telecom product revenue. What's the total, apart from cable and fiber, the product sales that happens, what was that and how are you seeing that revenue panning out?

I believe the data center connectivity piece is within that. I just wanted to understand a little bit on that side.

Data center is part of optical fiber cable. This is unlicensed band radio, routers, and Wi-Fi systems.

These are the products which are contributing to that particular revenue.

That is also being clubbed within the

telecom

products.

Yes.

What is that quantum in this quarter, and where do you see that revenue going?

This revenue in the whole full year, we are looking at ₹500 to ₹600 crore, on an overall basis. It will probably contribute 10% or even less than that of the total revenue.

Okay. Is it margin-dilutive or accretive?

It is margin-accretive, but not very high margins. The EBITDA margins could be something like 15%, 16%.

15%, I would say, yeah, 12% to 15%, not 15%, 16%, 12%, 15%.

Sir. Thank you so much for the opportunity.

Sir, my question is, this quarter, our 50% of the revenue was from export, right? How do you see this mix changing by end of FY27?

Within export, can you please provide a break-up that is 100% cables are for data center or is there something that we are also shipping for telecom? Also, sir, if you can throw some light on margin differential between IBR cable and normal flat loose cable as well.

Last question is something I cannot answer because that's really confidential, that how much margin on which kind of cable you get. As far as your first question

of revenue,

I think export revenue I would rather say should remain around 60% or so, and 40% would be for local revenue on overall basis, because the defense revenue mostly would be local. There would be some revenue from local data centers and telecom.

Now, for the fiber optic cable, overall telecom revenue is all local. Overall basis, you should say roughly about 60-40, 65-35, that kind of a range with exports being higher.

Got it, sir. Sir, one question on preform that you are very much confident on maintaining our margin and structure as well.

Like say if our supplier we must be in a negotiation with our supplier, right? How much price increase they are asking?

Are you also talking similar with our customer to pass on this price, or just wanted to understand why you are so much confident on this margin?

Confident because we have some of the contracts are long-term contracts, as I said. Some of the contracts are not so long-term, but at the same point of time, they are some overall some increase in the price of preform, there would be compensated by two factors: one, better pricing from the customers, and also the more value-added products like data center products which we have created.

Those are more value-added products, they are the better profitability, somewhat better profitability. Overall profitability in spite of increasing the preform prices is not going to be impacted, as I have said multiple times, and I am again saying that.

Ladies and gentlemen, it was really a very nice interaction with all of you, and I really compliment for the very nice questions asked by all of you and patiently hearing my presentation and my answers. I hope I have been able to reply to all your queries to your satisfaction.

Still, if you have more queries, you can ask our IR team led by Amit Agarwal. We will be very glad to answer.

If I receive any query, I would be very glad to answer. Yes, gentlemen, as I said in the beginning of my presentation, company is on a good progress path.

We have delivered numbers which today in the history of the company highest in terms of revenue and profitability and order book, all. We have a ₹26,000 crore order book, which is itself assures the sustainability of the business of the company.

Fiber optic cable business is in growth path. We are increasing capacities, and we are constantly reviewing the demand.

Demand may need more increase in capacity, which we will do if required. Data center connectivity business we have started this year, and this year itself, we would be reaching to about in ₹800 crore in the revenue.

We are increasing that capacity of connectivity solutions by 5 times including our subsidiary STL. It would be a significant part of revenue because it's a value-added product, and to a large extent, it will offset if there is any increase in the raw material prices if at all, or it may add to profitability.

Margins are not going to decline in the current year unless there is some geopolitical situation which is out of my control. For example, if Suez Canal closes or something else happens which is not in my control, but otherwise, from the company's business perspective, the revenue growth which we had talked about 20%, which we are now saying that it to the best of our expectations, it would be 40% growth in the revenue.

Profitability, which we said that it will increase by 2%, 3% from the 16% to 17% last year, has already grown to instead of 20%, it has reached to 23%. We expect this to continue in the next quarters also.

Ladies and gentlemen, with all your blessings, all your support, company has done well, and we assure you that we will continue to do well. Thank you very much, and we are ready to answer any further queries you have which you may write by email to our IR head, Mr.

Amit Agarwal. Thank you very much to all of you.