- HFCL expects defence revenue to start from Q1 of financial year 2028
- The company is bidding for army contracts on cables and thermal imaging
- HFCL is developing indigenous radars, anti-drone systems, and jammers
HFCL Ltd. expects revenue from its defence business to begin flowing from the first quarter of financial year 2028 as the telecom equipment maker prepares to execute major orders and expands its presence across military communications, surveillance and ammunition, sources said.
The company is currently bidding for multiple defence contracts, including Indian Army tenders for fibre optic cables and thermal imaging systems. HFCL has also been shortlisted for the Infantry Combat Vehicle programme, opening up another potential growth opportunity in its emerging defence portfolio.
Army Trials For Indigenous Systems To Begin
HFCL is developing a wider range of indigenous defence technologies, including surveillance radars, anti-drone systems and jammers. Field trials with the Indian Army for some of these systems are expected to begin soon, sources said.
The company's defence push extends beyond electronic warfare and communications. Its Puttaparthi manufacturing facility is expected to produce ammunition and hand grenades, adding a new vertical to the company's defence business.
While the company is building its order pipeline in the current financial year, meaningful execution of major defence contracts is expected to begin next fiscal. Revenue from the business is likely to start reflecting in HFCL's financials from Q1 FY28.
The defence expansion comes as HFCL shares have staged a sharp rally this year. The stock has surged more than 200% so far, rising from a 2026 low of Rs 60.95 to around Rs 211.78. It touched a year-to-date high of Rs 226.04.
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