Archive · 23 Jul 2026
AI-Driven Data Centres Boost Fibre Optic Demand
HFCL, a company that makes fibre optic cables, is doing really well because of something called artificial intelligence (AI).
AI needs a lot of data centres, and these data centres need fibre optic cables to work.
The boss of HFCL, Mahendra Nahata, says they saw this coming and made more cables to meet the demand.
They are making a lot of money from selling these cables, especially to other countries.
They also have a big list of orders, which means they will keep doing well.
They are even making new things for data centres and plan to make even more cables in the future.
They think they will make a lot more money next year and are happy about how things are going.
AI-driven investments in hyperscale data centres are increasing global demand for fibre optic cables.
HFCL's early investments in expanding manufacturing capacity have enabled it to capitalise on the surge in demand.
Exports account for over 70% of HFCL's fibre optic cable production.
HFCL has raised its FY27 revenue growth guidance to at least 40%, supported by a strong order book.
The company is investing in new data centre connectivity products and expanding manufacturing capacity to meet growing AI infrastructure requirements.
- Who
- HFCL, led by Managing Director Mahendra Nahata
- What
- AI-driven investments in hyperscale data centres are boosting demand for fibre optic cables.
- When
- Current financial year and beyond
- Where
- Global markets, with exports accounting for over 70% of HFCL's fibre optic cable production
- Why
- Rapid adoption of artificial intelligence is generating massive data volumes that require fibre optic cables for transmission.
Optimistic Growth Outlook
Potential Challenges
Market Demand
Optimistic Growth Outlook
HFCL anticipates strong, sustained demand for fibre optic cables due to AI-driven data centre growth.
Potential Challenges
Market fluctuations and project execution timelines could impact quarterly performance.
Profitability
Optimistic Growth Outlook
HFCL expects stable margins due to long-term orders and visibility on raw material prices.
Potential Challenges
Ongoing capital expenditure could pose risks to maintaining profitability.
- Company
- HFCL
- Managing Director
- Mahendra Nahata
- Q1 Net Profit
- ₹229 crore
- Q1 Revenue
- ₹1,915 crore
- Order Book
- ₹26,665 crore
- FY27 Revenue Growth Guidance
- At least 40%
- Expected Data Centre Revenue
- ₹800 crore
- Optical Fibre Capacity
- 3 million fibre kilometres