HFCL Limited (NSE: HFCL) Q1 2026 Earnings Call dated Jul. 25, 2025
Corporate Participants:
Mahendra Nahata — Managing Director & Wholetime Director
Analysts:
Mohit Lohia — Analyst
Balasubramanian A — Analyst
Siddhant Singh — Analyst
Darshil Pandya — Analyst
Aman Shah — Analyst
Lakshmi Narayanan — Analyst
Deepesh Sancheti — Analyst
Saket Kapoor — Analyst
Nikhil Puruhit — Analyst
Abhishek Leekha — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the HFCL Q1 and FY26 earnings conference call.
As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Statements made during this call may be forward looking in nature based on management’s current beliefs and expectations. They must be viewed in relation to risk factors HSTB’s business faces that could cause in future results, performance or achievements to differ significantly from what is expressed or implied by such forward-looking statements.
Investors are therefore requested to check the information independently before making any statements or decisions. Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Mohit Lohia from ICICI Securities. Thank you and over to you sir.
Mohit Lohia — Analyst
Yes, hi. Thank you Shruti and good evening everyone. Thank you for joining us today for the quarter one of FY26 call of HCL Limited. First of all, I would like to thank management for providing us the opportunity to host the call.
From the management side, we are Mr. Mahendra Nahata, Promoter and Managing Director; Mr. Vijay Raj Jain, Chief Financial Officer; Mr. Manoj Bhat, Company Secretary; and Mr. Amit Agrawal, Head of Investor Relations.
So without further delay, I would now hand over the call to Mr. Nahata for opening remarks. Thank you and over to you, sir.
Mahendra Nahata — Managing Director & Wholetime Director
Thank you, Mohit. Good evening, ladies and gentlemen. I extend a warm welcome to all of you on HFCS earnings call for the first quarter of Financial Year 26. I trust you have had the opportunity to review our financial results, press release and investor presentation which are available on our website and the stock exchanges.
As we said in Financial Year 26, India continues its strong momentum as a hub for digital innovation and self-reliance. The government’s push towards artificial intelligence, 5G readiness, and indigenous technology development is rapidly reshaping the country’s telecom and defense ecosystem.
The Department of Telecommunications in collaboration with academia and industry is laying the groundwork for AI native 6G networks which are poised to define the future of ultra-high speed intelligent connectivity. ASDL is actively contributing to this national mission by developing next generation technologies for 6G. in collaboration with premier academic institutions.
These initiatives not only position India as a future-ready digital powerhouse, but also reaffirm HFCL’s commitment to being at the forefront of technological advancement. India’s 5G rollout has made phenomenal progress.
In just 22 months since launch, 5G services now cover over 82% of the population. With more than 470,000 5G sites installed. While rural 5G coverage is still in progress, India has already achieved near universal 4G penetration across its villages. The swift infrastructure expansion is a testament to the sector’s agility and committed to digital inclusion. Quarter one of FY26 marked a strong and encouraging start of the year, with healthy momentum across our key verticals, telecom, optical fiber cables, passive connectivity solutions and defense.
Emergence of hyperscale data centers, the progress in the implementation of Harit-Kat has opened a very encouraging new business opportunities for HFCL, both for optical fiber cable and passive connectivity solutions and telecom products. Modernization of defense forces will also lead to increasing demand for defense products.
After nearly six to seven quarters of subdued demand in optical fiber cable business, we are now witnessing a strong resurgence in global demand. This renewed momentum beginning in Q1 of FY26 has enabled our manufacturing facilities to operate at optimal levels. Increase in business activity has translated into consistent and efficient plant operations, making a notable improvement from muted performance observed up to Q4 of FY25.
The revival in demand has led to notable increase in revenue contribution from this segment, further strengthening our growth trajectory in the connectivity domain. Our optical fiber cable business continues to remain a key growth engine for HFCL. During quarter one of FY26, we secured export orders for approximately 300 crores and achieved export revenue of around 210 crores.
This quarter also marked the onboarding of several reputed global customers along with repeat orders reflecting strong customer satisfaction and trust in our offerings. We obtained product approvals from many leading customers Further strengthening our global footprint, additionally, our high value fiber products are gaining significant traction, particularly in European and Asian markets, which are known for their stringent performance standards and competitive benchmarks.
The global demand for high capacity fiber infrastructure is entering a transformative phase. fueled by rapid growth of hyperscale data centers and next-generation digital infrastructure. These applications require scalable high-fiber count optical networks.
With unprecedented increase in hybrid scale data centers, we anticipate a sharp surge in the requirements for high-count fiber cable, particularly intermediate bonded ribbon cables over the next few years. I am pleased to share that HFC has already strong order book for high capacity IBR cables with a very strong pipeline of additional opportunities under discussion.
With a sharp increase in demand for high-conductivity fiber, particularly IBR cables, we are significantly expanding our manufacturing capacity to ensure that we are well positioned to capture a significant share of this high growth market.
To further strengthen our leadership position in advanced OFC technologies, the Board of Directors in its meeting held on 11 July 2025 approved the expansion of IDR cable capacity from 1.73 million fiber kilometers per annum to 19.01 million fiber kilometers per annum at a high hour Hyderabad and Goa facilities. This will enable us to meet rising global demand, particularly from North America and Europe, where we already have orders from major customers.
With this planned expansion, our total optical fiber cable manufacturing capacity will increase from 25.08 million fiber kilometers to 42.36 million fiber kilometers per annum. significantly enhancing our ability to serve both domestic and international markets.
This enhancement in capacity will make HFCN one of the leading supplier of optical fiber cable internationally. This enhancement in manufacturing capacity of IBCN cables aligns with our strategy to diversify our cable portfolio and reinforce HFCN’s position high volume international market segments. With a strong traction we are experiencing particularly from international customers.
We are confident that our optical fiber cable business is poised to more than double its revenue in FY26 compared to FY25. This growth reflects not only recovery in demand but also a structural shift in the global optical fiber cable landscape where HFCL positioned well to lead. Our passive connectivity solutions are playing a pivotal role in resolving last mile challenges faced by telecom operators.
They are offering integrated, ready-to-deploy solutions for urban, rural and enterprise networks. We are not only improving network efficiency in uptime, but also dipping our value across the entire connectivity ecosystem. On the pricing connectivity solution front, we secured several orders across both domestic and international markets.
As part of our long-term strategy, we are committed to have significant revenue from this segment of our product portfolio. We are strongly focused on tapping into massive opportunities emerging from explosive growth of hyperscale data centers. Apart from high-con fiber cable, we are also developing passive connectivity solutions specifically for data centers.
We expect a significant increase in revenue from passive connectivity solutions business with data centers also. We also expanded our cable reinforcement solutions globally. We export orders for FRP routes to the US, Belgium, UK and Saudi Arabia along with repeat orders from for thermal FRC rods from international cable manufacturers.
These components are critical in ensuring the structural integrity and durability of modern fiber optic networks, especially in challenging environmental conditions. In the telecom equipment space, we achieved a major milestone by successfully developing indigenous MPLS routers designed to support backhaul Fiber Broadband and Enterprise Networks.
We are proud to be the only Indian manufacturer aside from pages to develop such routers. These next generation routers are engineered to deliver carrier grade performance even under harsh environmental conditions, making them well suited for both civil including rural and defense applications.
We have already commenced commercial deployment of routers in a domestic telecom under real life traffic conditions successfully validating their capabilities. Since HFCL has secured orders worth INR650 crores for routers under BharatNet Phase 3 program and expect to receive significant additional orders as more states roll out their implementation under BharatNet program.
While the domestic market itself presents Strong growth opportunities, we also see immense export potentials for our routers given the global demand for secure, scalable and self-reliant connectivity infrastructure. This reinforces HFCL’s positioning as a technology-driven company with a robust future-ready product portfolio.
Our strategy to move up the value chain by offering smarter, Technology-led telecom products is showing strong results. We continue to expand our offerings across 5G and enterprise connectivity. Recently we secured a repeat order worth 175 crore for our indigenous 5G networking equipment, underscoring our made in India capabilities. In the defense vertical, HFCL made transformative progress during this quarter. We secured a landmark contract for thermal weapon sights for AK-203 rifles. This achievement highlights our R&D maturity, manufacturing capabilities and adherence to stringent defense quality standards.
Additionally, we are declared as L1 bidder in INR90 crore tender for tactical cables, which are deployed by Army in battlefield conditions. These cables are a vital part of HFCL’s high performance connectivity portfolio designed to ensure secure, resilient and mission critical communication in demanding operational environments. We also signed three memorandum of understandings with UAV manufacturers to co-develop next generation and mandate Indian platforms with weaponized drones aimed at modern warfare surrender and logistics applications.
In parallel, we are developing a state-of-the-art drone detection radar with soft kill option which is expected to enter production phase within the current financial year. Life time of these products is currently under way, which is expected to start shortly. The product has already generated strong market interest. given the rising need for autonomous aerial fleet management system.
Further, our electronic fuses for artillery guns are also scheduled to undergo live testing in August by DRDO following the recent receipt of information from the Ministry of India Limited. This marks a key milestone in our defense roadmap with production expected to begin soon after successful trials. We have signed two technology licensing agreements with DRDO, the Compact Trans Horizon Communication System and Multi-Mode Hand Grenades, strengthening our role in providing high performance, battle field solutions.
We are also in advanced stage of securing technology transfers from DRDO for mechatronic uses, weaponized hand held thermal imagers, and compact airborne multi-sensor optical payload for UAVs. We have also applied for POTS for UAV launch precision guided missiles and very short range air defense missiles. These developments reflect our deepening collaboration with DRDO.
We affirm our commitment to deliver scalable indigenous next generation defense technologies. The recent geopolitical conflicts and rising global security concerns have accelerated defense modernization efforts across the world. In India too, the government has renewed focus on indigenization and advanced warfare capabilities has created opportunities for companies like Larsen & Toubro.
With our deep R&D capabilities, cutting-edge technology solutions, and commitment to Atmanirbhar Bharat, we are strongly positioned to contribute meaningfully to India’s defense modernization journey and tap into the growing demand of defense products. To further strengthen our brand and capabilities globally, excel showcased its defense portfolio at the 55th Paris Air Show, the foremost air exhibition in the world held last month.
Our exhibits included artillery, missiles, surveillance radars, Thermal Weapon Sites, High Capacity Radio Relay Systems, Technical Communication, and EWIS Assemblies. The event witnessed significant engagement from global defense OEMs, delegations and technology partners.
These interactions have opened up several avenues for international collaboration and export opportunities in the coming quarter. Driven by these needs, Our order book as of 30th June 2025 stands at 10,480 crores compared to 9,967 crores in the previous quarter and 6,776 crores in Q1 of FY25.
Let me now highlight our financial performance for quarter one of FY26. Revenues stood at 871.02 crores compared to 800.72 crores in Q4 of financial year 25 and 1158 crores in Q1 of financial year 25. EBITDA stood at 42.93 crores compared to negative 22.53 crores in Q4 of financial year 25 and 185.37 crores. in Q1 of financial year 25.
Average margin was 4.93% in Q1 FY26 versus negative 2.79% in Q4 of financial year 25 and 16% in Q1 of financial year 25. Profit after tax came in at negative 29.30 crores compared to negative 83 crores in Q4 FY25, 110.65 crores in Q1 FY25. Petron margin stood at negative 3.36% in Q1 of financial year 26 compared to negative 10.4% in Q4 of financial year 25 and 9.55% in Q1 of FY25.
Telecom product segment revenue contributed 66.35% of total revenue. compared to 76.35% in Q4 of FY25 and 61.42% in Q1 of FY25. Q1 FY26 has laid a solid foundation for what we believe will be a breakout year for HFCL. The robust order inflow, expanding global demand of our optical fiber cable and IBD cables, and strategic moves in defense We are witnessing the early outcomes of our strategy shift towards high-tech, value-added solutions.
Our continued investments in capacity expansion, product innovation, and global partnerships are positioning us at the forefront of next-gen connectivity and defense technology. Looking ahead, we see clear tailwinds with accelerated execution of BharatNet, 5G densification, Rising global optical fiber demand and expanding opportunities in indigenous defense manufacturing, all of which provide strong visibility and momentum.
We have entered our second quarter FY26 with renewed confidence, a very healthy order book and improving profitability. HFCL’s fundamentals are stronger than ever and we remain fully committed to creating long-term value for our stakeholders. Thank you once again for your continuous support.
Ladies and gentlemen, now the floor is open for questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session.
Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Balasubramanian from Arihant Capital. Please proceed.
Balasubramanian A
Good evening. Thank you so much for the opportunities. So my first question regarding data center, I think data center networking, total addressable market, it’s more than one trillion dollars over next four years.
Yes, same. I just want to understand how differentiate ourselves in terms of data center networking compared to our competitors. Because one of our competitors already making more than 20% of revenue from data center side only. So we could share more light on that industry side and our company capability side.
Mahendra Nahata
Thank you, Mr. Balasubramanian. The world market for data center is very, very large. Right now with the kind of hyperscalers are coming up all over the world, particularly in North America, Europe, the unprecedented growth, which we could not have imagined probably six months ago. Now, these data centers need different kind of products, you know, servers and those kind of large capacity switches, which we don’t manufacture.
But we supply to them is high capacity fiber optic cables. And also the passive connectivity solution product portfolio which we are building now, the revenue from them would start in maybe another quarter from now. Now, our expectation with this growth for passive connectivity solution as well as fiber optic cable high capacity, high fiber count, again long term, because this growth for data center is going to continue for at least five years.
So we already have secured contracts from major players and for a purpose of commercial confidentiality, they can’t name them. And we are also in process of now getting our product certified for passive connectivity solutions for data centers. from these customers, customers remain the same.
And we expect that this PCS solution, TCI connectivity solution is also going to give us a reasonably good amount of revenue for data centers in the next financial year. But of course, TCI connectivity solutions for telecom operators has already started giving us revenue and our target for revenue from passive connectivity solutions for telcos, telecom service providers and other operators is about 450 crores in the current year.
Data center would be on the top of that, whatever we do this year. But our real expectation for data center is to from the next year for the PC as a service, they are getting some revenue operators.
Balasubramanian A
Got it, sir. Also, I think we showcased drone data and electronic users at that Paris Data Show. So what is the commercialization roadmap and are there any pending certifications or approvals? And secondly, we got around 90 crore defense order, especially for thermal sites and tactical cables. So, what’s that realistic revenue contribution timeline? And is there any technology transfer risk with partners like DRDO?
Mahendra Nahata
Look, revenue, as I said earlier also, in my last call, revenue from defense will start in this current quarter. Thermal weapon side, tactical cables, where we have already started supplying in fact in Eastern Command. There was another tender which we had won and we have started supplying.
This 90 crore tender which we had declared L1, ordering should be in June. that as soon as the order is received, we will start supplying. Thermal weapon sites will start possibly supplying within this quarter. So there are number of products, you know, which will start supplying this quarter.
But yes, number of products are going to be getting approval possible in this quarter itself, which is your electronic series for which we have been waiting for a long time. Because ammunition required for testing was not available, which are only by the government, actually, Ministry of India Limited. It took for more than six months.
Now, this amendment has arrived for testing and testing will be conducted by DRDO in August. If the testing is successful, for which we are very hopeful because there are minor defects last time, we expect large number of orders. We already even before approval, We are receiving large inquiries for export for this product. So we have a very high expectation from electronics users, of course. The drone detection radar is now included with the soft kill option, detection and soft kill option. It is almost at the end of the lab trial and we expect that field trial would start sometime late part of the August.
Once the field trial are successful, we would operate for production, which I expect should happen in this current financial year. Now with the, as you have seen, you know, how drones are being used in the war with this, this time, you know, whether it was operation in Sindoor or whether Iran, Israel or with the Israel, Hamas or Ukraine, Russia, you know, drones are the means that in of warfare nowadays. So equally what you need is anti-drone systems.
So this drone detection radar and also the soft skill option together with that and as a system, you know, when we sell it, again we expect good demand opportunity for this not only in India but internationally also.
Balasubramanian A
So my last question, what is the current scenario of optical fiber and optical fiber cable prices and what is the status of inventory liquid at global level operators.
Mahendra Nahata
What was the last one? What is the…
Balasubramanian A
Inventory liquidation status at that global operators.
Mahendra Nahata
Okay. Okay. Now, you know, the fiber prices, the fiber prices are ranging between, you know, INR240 to INR250 per kilometer, you know, depending upon this fiber and whatever you are talking. The gender D fiber, what we call D fiber, which is generally in use to 42 to 60 degrees per kilometer. The fiber cable realization prices, you know, again depends, you know, is between INR850 to INR900 per kilometer. The cable is between INR850 to INR900 per fiber kilometer and fiber is just the bare fiber INR240 to INR250 per kilometer. there is the price.
Number two, the inventory levels have now significantly almost finished. That is why you see this increased demand of fiber optic cable. Telcos also, data center operators didn’t have any inventory. So they are all in fresh for stages. But Telcos inventory is also almost finished now.
So there is a renewed demand. has come up in telcos. As a matter of fact, we continuously receive more and more orders from our customers which are, you know, the telcos or, you know, suppliers to telcos. So inventory levels are now gone.
Balasubramanian A
Got it. Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Siddhant Singh from Green Portfolio Private Limited. Please proceed.
Siddhant Singh
Am I audible?
Mahendra Nahata
Yes, go ahead.
Siddhant Singh
Sir, so first, can you bifurcate the defense order book and export order book out of total order book? Like how much is for defense and how much is for export?
Mahendra Nahata
Look, our export order book, just give me a moment. Our export order book today is just give me one second. About 400 crores, it’s roughly about 400 crores. and from different segment would be roughly about 12% of our total order book which is 10,000 crores. The difference is about 1300 crores about, you know, give or take a couple of crores.
Siddhant Singh
Okay, so and for defense, like which product is the highest contributing in order book, for which product we are getting highest order?
Mahendra Nahata
Look, you know, different, you know, optical fiber, you know, tactical cable is the highest portion, tactical cable followed by thermal weapon sites and operation and maintenance contracts are also there for the NFS work which we had, you know, done for the defense. And now we expect, of course, going forward is more and more products coming in our product portfolio. We really believe that, you know, these will really pick up for radars and fridges and all those kind of things in next three months’ time.
Siddhant Singh
Okay. And so, like, if we receive a very big order for any defense product, are we capable enough for delivery? Like, we have manufacturing capacity capabilities to deliver huge number of orders right now, or we have to like develop some new facility?
Mahendra Nahata
We have put up a facility in Hosur for manufacturing defense products. I think we are capable of delivering, you know, but we foresee the possibility of orders which we can get. But again, you know, very huge orders come all of a sudden, which I would be happy to receive. We can always increase our production facility. But anyway, for the foreseeable requirement, whatever we can get, we have production capacity in Hosur. But certain things, you know, which we want to manufacture for which we have applied for licenses.
And also we have got TAP for welding board hand grenade, for example, that production will have to run at different production facility because those involve explosives. And for that you require large chunk of land and, you know, magazines and all that installed.
So for that separate manufacturing facility would be required. But let us first discuss the theory for that and then we will look at that. But yes, we are working on them and we expect good opportunities for emulsions also for which we will be definitely establishing a separate production facility.
Siddhant Singh
And like for any new product, we will start receiving, we will start the getting the venue in FY ’27 only?
Mahendra Nahata
For?
Siddhant Singh
For any mission futures when we will be able to start recognizing revenue?
Mahendra Nahata
Look again, let us assume that trials will be successful, which I hope August trial will be successful. If the trial of August are successful, then we can start getting revenue from the last quarter of the current financial year also. because trials successful two or three months in starting production should not take two or three months also. But definitely the trials are successful from the last quarter of this financial we should start getting revenue from this. Your orders are not going to be a problem; I can tell you.
Siddhant Singh
Okay, so and one last question is that sir, like you right now announced that we are going to raise 700 crore. Can you like give the breakdown, like how much we are going to use as a capex and where we will be going to use that. And second is that we like some of our promoter holding is decreasing every quarter. So what is your take on that? Like whether you will be going to participate into fundraise or we are going to dilute our state.
Mahendra Nahata
Siddhant, first of all, you know, seven minutes is just an enabling visual issues are passed. You know, we have still not decided when to raise, how much to raise. whether it is all these things are still under discussion. You know, it’s just an enabling regulation. Now, whenever we decide, you know, the Jews would be, of course, to tap into the increasing defense opportunities, telecommunication opportunities, Optical fiber cable opportunities. But majorly the major…
Operator
Ladies and gentlemen, the management line got disconnected. We’ll connect them shortly. Ladies and gentlemen, the management line got disconnected. We’ll connect with them shortly. Please stay connected.
Mahendra Nahata
Sorry, the line got disconnected.
Operator
Yes, sir. Yeah, you can continue.
Mahendra Nahata
Yeah, next question please.
Operator
The next question is from the line of Darshil from Finterest Capital. Please proceed.
Darshil Pandya
Hello, am I audible, sir?
Mahendra Nahata
Yeah, audible, sir.
Darshil Pandya
Yes, sir. Thank you so much. Sir, just wanted to understand since you are saying that, you know, the demand is back again. for the fiber optical cables. When are this margins expected to be in the center lines, what we have seen in the last year, which were around 41-15%. I just wanted your views on this.
Mahendra Nahata
From this quarter itself, in fact, you know, from July, you know, so not from July. Yeah, July, July, which was the last month of the Q1, we started into that kind of a margin. And from this margins would continue to be of that level of roughly about 15% or so. Currently whatever orders they are executing, most of them are in that range of margin.
Darshil Pandya
And this margin reduction was purely due to the demand issue or was it something else also?
Mahendra Nahata
Really the decrease in margin was because of low demand. Once the low demand and the capacity utilization is lower with the manufacturers, They tend to start selling at a lower price, which is normal. It is demand supply equation. Now the demand has gone up considerably.
As a result of that, of course, prices have also gone up and buyers are also facing a capacity constraint in search for high quality cables. or high technology cables. You know, these are not, I’m not saying that demand has increased for run of the mill cables, you know, which so many people manufacture. But the cables, which have been high technology cables, IBR kind, let’s say, intermittently bonded with cable as an example of 864 fiber or 728 fiber, which not so many people are able to manufacture because they’re highly critical. technology and quality.
So there are the prices have gone up because the manufacturers are not so many and at the same point of time margins also be better. So technologically these are different level of products.
Darshil Pandya
Got it. So sir given the kind of you know the capacity expansion also we are doing so looking at this demand which has obviously come up again. What is your view on you know these capacities that we are that we are expanding and when these capacities will be live in this year or the next subsequent years?
Mahendra Nahata
Look, you know, this capacity expansion is already in progress. There are number of machines, you know. For example, we are buying 10 machines. As an example, I am telling you. So what will happen? They will come one by one being delivered, you know. These are all coming from Austria.
So Austria, not Austria, Austria, Europe. so they are coming one after another, one after another. So expansion is already in process, but it would be completed before the end of this financial year. But it’s not that the capacity expansion will start one particular day. It is already in process. Because factory building is already there, stage is already there.
As the machines come, we are, you know, fitting them. You know, one machine is expected to arrive very shortly, I think. these another two, three days or five days. So these are continuous extension, but full would be completed by March. So revenue would start accruing from this extension in the current financial year itself.
Darshil Pandya
Okay. And final question would be on the number front. Sir, we have been, I have been hearing that, you know, we are doing a lot of things in defense with this new capacity also. And last total we have given somewhere 25-30%. guidance. Sir, where are we standing today and what kind of numbers will we see this year and the market?
Mahendra Nahata
I would still stand with the idea which I gave that this year our revenue is expected to be 25 to 30% higher than the about 25% higher than the last financial year. And as far as defense products are concerned, yes. you know, some of the products got delayed at fuses for none of our fault. You know, this was ammunition not being supplied by government company, which are the only producer of ammunition of that kind today. So this got delayed.
Otherwise, you know, they would have started acquiring much sooner. In fact, we have received the LOIs for, we have received LOIs for our radars also, you know, ground surveillance radars. But they are not culminating in orders, which I expect to happen pretty soon. This is for export. Similarly, for multi-mode hand grenade, which we have got a technology from DRDO and we are in process of producing first 100 or so samples for qualification by DRDO. and those are already under production.
So once they are qualified, we expect to receive large number of export orders for multi-mode hand grenade also. So, you know, though, you know, look, the defense is a bit of a sector. Things take time. But if you get in, then, you know, you get continuous orders. Similarly, as I’ve been telling you, We have been shortlisted for the organization of BMP-2, which is an armored personal carrier. But…
Operator
Ladies and gentlemen, please stay connected. The management line was disconnected. The line is lost.
Mahendra Nahata
Hello.
Operator
Yes, sir. You can talk now.
Mahendra Nahata
Where is Madam?
Darshil Pandya
Yes. Yes, sir.
Mahendra Nahata
Hello.
Operator
So you are on the call?
Mahendra Nahata
Yeah. Yeah. I don’t know up to what you heard, you know? I don’t know when it got disconnected. I don’t know. till what time you heard?
Darshil Pandya
Certain the LOI that you had received from the…
Mahendra Nahata
Yeah. So we expect to receive orders also very soon. So what I was telling is, you know, defense takes time. But once it starts happening, it happens continuously. Like BMP 2 orders tender has been postponed twice. Now it is on 29 September. If it happened again and if we had won, we would have started seeing revenue in this year itself. So it’s quiet, you know, likely that, you know, once the order starts coming, then it’s a continuous process.
Darshil Pandya
Okay, got it, sir. And of the 700 crore, you know, Funders that we have enabled, will there be something for, you know, reducing the borrowing, sir? Because right now interest…
Mahendra Nahata
It’s just a neighboring region.
Darshil Pandya
Correct.
Mahendra Nahata
And the details are being worked out. We will definitely let you know when we go to the final decision.
Darshil Pandya
Okay, no problem.
Mahendra Nahata
Leveling registration up to 700 course, not for 700 course.
Darshil Pandya
No problem. We’ll wait for the. For your announcement. Thank you so much. And all the best for your subsequent quarters.
Operator
Thank you, ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, Please limit your questions to two per participant. The next question is from the line of Aman Shah [Phonetic] from RSPN Ventures. Please proceed.
Aman Shah
Hello. Hi, am I audible? Hello.
Operator
So the line of management got disconnected. We’ll be connecting them shortly.
Aman Shah
Okay.
Mahendra Nahata
With the DSL network, it’s getting connected, disconnected all the time. I’m really sorry.
Operator
Yeah, so you can start.
Aman Shah
Hi, am I audible.
Mahendra Nahata
Yeah, hello.
Aman Shah
Am I audible?
Mahendra Nahata
Yeah, you’re audible.
Aman Shah
Okay, thank you for allowing me this opportunity. I just had two questions. Sorry, I joined the call a bit late. I might have missed it. So what’s the capacity utilization of optic fiber?
Mahendra Nahata
Look, in optical fiber, we are working at 100% capacity for optical fiber. We are at 100%. Optical fiber cable the capacity utilization has started improving in the first quarter, you know, particularly June month has started, May June has really started improving. July it has further improved and now reaching to almost 100%.
Aman Shah
Okay, okay, wonderful. Thank you, sir. Last question, just wanted to state a bit on Delhi NCR factory and the revenue potential. from that factory.
Mahendra Nahata
Okay, sir. Say that again. I couldn’t hear you.
Aman Shah
I just wanted to know the progress on the Delhi entire factory for telecom and the revenue potential from that.
Mahendra Nahata
Okay, we have already started producing this. However, FWHCP, the 5G FWHCP, we produced system integrated in there only which was order already we have supplied roughly about 600 crores. Another 200 crore supply would start in another maybe three to four weeks.
Router supply, router production has picked up from there and supply would start, has started in small lots already. The bulk production would start sometime in August. We will be starting bulk products or our router from that factory. The product is already on. The product is already on.
Aman Shah
Okay, okay. Thank you. That’s it for myself.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please submit your questions to the two-participant. The next question is from the line of Lakshmi Narayanan from KSEMA Wealth Private Limited. Please proceed.
Lakshmi Narayanan
Hi sir, are you able to hear me?
Mahendra Nahata
Yeah, Lakshmi is there to hear you.
Lakshmi Narayanan
Sir, I just want to understand what is the contribution of optical fiber in our total revenue mix and how much is it part of your order book?
Mahendra Nahata
You know, as far as order book is concerned of the fiber optic cable, you have to understand, you know, they keep on coming. You know, it never comes into a big number by once it sets. you know, it keeps on coming. We supply for 50 crores. We get another order 50 crores on the same customer. So it comes like that. But in the total products which we are making, you know, total products, you know, about 65% of the product Revenue is the Optical fiber cable of the product.
Lakshmi Narayanan
Understood. Sir, my next question is you are talking about like passive solution for telecom and defense. Could you just expand on that because I’m not able to get that. What would be, is it like optical fiber or something else?
Mahendra Nahata
What is patch on solution? I could not understand.
Lakshmi Narayanan
Yeah, yeah, passive solution for telecom you’re saying that you guys are developing.
Mahendra Nahata
Yes, passive connectivity solution, you know. so when you lay optical fiber cable, whether in a data center or in a Telco network, you need to lay down fibers. You know, you need the joint inboxes…
Operator
Participants, imagine this line got disconnected. Please stay connected.
Mahendra Nahata
Connected. This time I’ve given my mobile number. She calls me a mobile number. There’s some problem with a BSNL line, you know?
Operator
Yes, sir. We have the management on the line now.
Mahendra Nahata
So this pressive connectivity solution is the material which are, you know, does not need electricity, but are necessary for putting Optical Network in place like jointing box. windmills, manholes, optical splitters and those kind of things.
Lakshmi Narayanan
Okay sir, if I could squeeze one more question, sir. BharatNet is then also in phase 3, how much revenue are you expecting for this financial year?
Mahendra Nahata
BharatNet particularly revenue, I would say of the total order we have got roughly about 5,000 crores or at least 30% of that. but I would say but no 30% cannot be six months you know it would be about in the range of about 1000 crores.
Lakshmi Narayanan
1000 crores.
Mahendra Nahata
It may be 900 you know something around that.
Lakshmi Narayanan
Okay sir, you’re talking about the nine mission thing about 45 crores which you said like supply will start in Q2 in previous phone calls. is it going to happen for this quarter?
Mahendra Nahata
Yeah. We are trying our best that it should happen in this quarter itself. We are trying our best.
Lakshmi Narayanan
But you want approvals are done, sir.
Mahendra Nahata
All approval done. All approval done. And then all the order received. All approvals done.
Lakshmi Narayanan
Okay. That’s it from me. Thank you, sir.
Operator
Thank you. The next question is from the line of Deepesh Sancheti from Maanya Finance.
Deepesh Sancheti
Hello, sir. Am I audible?
Mahendra Nahata
Yeah. Audible. Go ahead.
Deepesh Sancheti
Yes, sir. So just one question. What is the succession planning?
Mahendra Nahata
Succession planning. That I am still young enough.
Deepesh Sancheti
Yes, we. We. And we hope that, you know, for the next many years we see you. But just as shareholders, just want to know about, you know, if there is any succession planning.
Mahendra Nahata
In planning, we want to completely professionalize the company, you know. that it would be run by professional CEOs and professional business heads already, you know, companies run by business heads for different business verticals. But in future we expect shareholders to just play the shareholders role and company run by professional CEOs. That is the way we are planning now.
Deepesh Sancheti
Sir, none of the next generation of the NADA companies are planning to join the business?
Mahendra Nahata
No, they are planning to join the business but from the perspective of a shareholder, not as a day-to-day running of the company. That should be completely professionalized…
Operator
Ladies and gentlemen, please stay connected. The line got disconnected. Ladies and gentlemen, thank you for the patience. You have the management connected.
Mahendra Nahata
Yeah. Now we are on the mobile. So hopefully maybe this time it will not get disconnected. Now I’m not understanding that I’m on mobile. yeah. Next question.
Deepesh Sancheti
Yes, sir. Again, only on the question planning, I just wanted to understand if the next generation is actively part of the business or they just will be part of the board.
Mahendra Nahata
So they will actively participate. Of course they will actively participate. But, you know, one is day-to-day operation. You know, what is the production, what is the production value, what is the quantity? who has been delivered, which material has been purchased, those should now be left to the professional CEOs.
The next generation should work, focus more on strategy, more on the policies, more on the outside environment management, building relationship with customers, those kind of things, not to handle the day-to-day operating issues. You know, that’s the way it is going to be.
Deepesh Sancheti
Right, right.
Mahendra Nahata
That should be — professional CEOs to do that.
Deepesh Sancheti
Absolutely. And we hope to see you sir for a very, very long time.
Mahendra Nahata
Hopefully.
Deepesh Sancheti
Yes sir, and just one, if I can add one question, when does revenue de-growth actually end and when do we get the true realization of the huge order book which we are having?
Mahendra Nahata
Revenue realization for the order book is continuing, it’s continuing. Of course, I think Q2 would be better than Q1. Of course, Q2 would be better. EPC revenue would go up; EPC revenue would go up and revenue from fiber optic cable business will also go up with more capacity realization happening now. so, you know, the heavy relation is already there, but it is going to increase from this quarter and the quarter next year further.
Deepesh Sancheti
No, just wanted to understand when was the revenue de-growth actually, you know, end because the year on year revenue de-growth.
Mahendra Nahata
Because you know the major region was the fiber optic cable revenue going down for last two years, you know, fiber optic cable revenue, what we expected to happen. It was 40% of that, otherwise the revenue would have increased. And that was not unique in our case, that happened all over the world. Whether you take conning, whether you take BGI and OSF, whoever you take, everybody has gone down last year.
Deepesh Sancheti
Thank you so much for the clarity and all the very best to you.
Operator
Thank you. The next question is from the line of Saket Kapoor from Kapoor & Company. Please proceed.
Mahendra Nahata
Saket [Foreign Speech].
Saket Kapoor
[Foreign Speech]. I was there in the queue. Maybe the queue is long and the intermittent disruption was also there.
Mahendra Nahata
Yes, yes.
Saket Kapoor
[Foreign Speech].
Mahendra Nahata
[Foreign Speech] I don’t know what has happened [Foreign Speech].
Saket Kapoor
Firstly, when we look at our consolidated revenue for the telecom product, although the revenue rises, there is a revenue increase by 92 crore. The contribution to the profitability is 30%, that is 29 crore. So what goes into this telecom product specifically when we consolidate our numbers?
Mahendra Nahata
Telecom providers goes, you know, one is of course fixed wireless access terminal which we have produced, the unlicensed radio which produce. So these are some of the telecom products which produce them where we have a lower profit margin. So the profit margin fiber optic cable which is also part of the product revenue only has been higher, much higher. as I said about 15% or so. But then the telecom electronic products, the margin has been lower. So this is how it is.
Saket Kapoor
Okay, sir, we have also seen the promoters stake also coming down over the last two financial years. That is through the open market selling, especially through your entity. So what should investor read into the gradual reduction in your, in your stake in the company. And again, we are coming with a QIP proposal. So that will again, for that diluted our holding going ahead. So what message that you are giving to your, into the, to the investing Community by these frequent setting…
Mahendra Nahata
Saket, first of all, QIP proposal is still just enabling, you know, we are not deciding that whether we are going ahead with QIP or not. That is number one. and you know, and if you look at, you know, promoter’s case, if you look at in last few years, just don’t look at one or two years. Promoter’s case, you know, has gone down by 1 crore 92 lakh shares against some 47 crore of shares or shares promoter’s hold, which is not a very big number.
And, you know, promoter also needs sometimes money for personal use. including the social, you know, use also charitable purposes and all that. So, you know, still promoter has substantial holding, you know, substantial holding is still there. More than 31% holding is there. And, you know, promoter always has the option to increase the holding. Earlier we had purchase shares from open market. This was, of course, you know, informed this stock exchange.
Whenever we did that, we subscribe it to warrants also. If we need be, we can do that in future also. I’m not saying that we would do that or not. So, it’s need be we can do that also. So, there is not a very substantial reduction. It’s on a 1 crore 92 lakh here on an overall basis, if I get the data for last six or seven years, it’s not such a big number. But, you know, it’s money for personal purposes also, you know.
Saket Kapoor
But sir, the market cap has gone down, the investor interest is also lower and these all create depressions also for the market because it took things from you when you up your stake at that time, three years ago and today your stake from 35% to 31% in a span of just two quarters, do speak your volume sir. This is my understanding sir, I will be wrong.
Mahendra Nahata
It’s not because of that, promoter has sold the shares or the market, you know, share prices have gone down earlier on this. promoter did not sell at, you know, that has got any relation to the market cap. I think so many companies, promoter in the country have sold their stakes. Some stakes have been sold because the promoter needs money for some personal reasons. What does he do?
Where does he bring money from? I’m not going to take, you know, nominal money from the company or anything. So on this second point, and my salary is not enough to take care of some of the needs which may be there, you know. So what, what do you do? You tell only your kid to get money. Now, where else you’ll get money from?
Saket Kapoor
So when you say that this is a breakout year for the organization in your press release, you have Alluded to the fact, return it that HFCL, this will be the breakout year. What according to you is breakout year for an organization in terms of profitability or revenue? Where are we, I am that we are using this.
Mahendra Nahata
Listen to me, three more things. One quarter on quarter revenue will keep on increasing, number one. Number two, defense will start really showing revenue coming up. which we have been trying since our two, three years. But this year now the defense has started showing revenue. Techtree has been commissioned for defense products.
More number of defense products we are adding in our portfolio including technology transfer from DRDO and maybe in future there may be some technology transfer from some foreign partners also maybe. So all this would really mean that new streams of revenue would start happening. And then revenue from data center, which was never there, has started happening in optical fiber cable.
And we will bring up revenue from data center for passive connectivity solutions also. So new revenues in different services, new revenues in data centers, fiber optic cables, all this would make it a breakout here.
Saket Kapoor
Okay. And lastly, sir, as you mentioned, that Revenue will grow. So in the trunkey contracts, so can we expect now the losses to mitigate in the last two quarters? Our PBT losses have moved up to 200 crore?
Mahendra Nahata
Yes, yes, yes. It will happen because with the increasing Revenue, particularly in increasing the excuse of Bharat Net, this is definitely going to happen.
Saket Kapoor
Okay, and as a year as a whole, what should we look for the turnkey business performance be?
Operator
Sorry to interrupt Mr. Saket, can you…
Saket Kapoor
I am concluding, please allow me to conclude ma’am. That will be the last…
Mahendra Nahata
Go ahead, go ahead.
Saket Kapoor
Sir, what I was trying to understand is for the year as a whole turnkey business that is the EPC part, how will that we would be shaping up and whether the bottom line will be positive or…
Mahendra Nahata
Yeah. what I have said is that overall you can look for about 25% growth in the revenue. Overall, that is what our best estimate is that there should be 25% growth in the revenue of the company in the current financial year.
Now, how much it will grow in EPC, how much it will grow in defense or, you know, products, very difficult to say, but at least EPC will grow and also I can tell you fiber optic cable business. It will grow by 100. That is our current estimation. You know, last year it was 700 crores. This year we should be reaching to 2400 crores.
Saket Kapoor
Okay. Okay,
Mahendra Nahata
Sir, I get the expected revenue of fiber optic cable. And. And in my opinion, you know, more than 50 of that is going to be exports.
Saket Kapoor
Okay. I had just one more part on the right issue for exit. So we will be participating…
Mahendra Nahata
Exicom question, I can’t answer. I’m not…
Saket Kapoor
No, HFCL is a shareholder. HFCL will be hold by six percent. So we will be participating to the extent of our proportion to the issue.
Mahendra Nahata
No, we are. We have already said that we are not participating.
Saket Kapoor
Okay. Thank you sir. All the best to the team sir for going ahead. Thank you.
Mahendra Nahata
Thank you sir.
Operator
Thank you. The next question is from the line of Nikhil Puruhit from Fidante Asset Management. Please proceed.
Nikhil Puruhit
Hi sir, am I audible?
Mahendra Nahata
Yeah, Nikhil, you’re audible. Please go ahead.
Nikhil Puruhit
Thanks for the opportunity. So my first question is what is our defense facility utilization right now? and what do we Target by the end of this year?
Mahendra Nahata
So design just started. It just started. So I wouldn’t say there is any percentage to that, you know, it just started, you know. So Q2, we would be starting producing this, you know, thermal weapon sites there. Multimode has been. If you get order, we will not producing there. because right now we don’t have license for explosives. Once we get explosive license, we’ll have to produce at a different facility, not at this place. So it is just starting. So I won’t put a number at this point of time to that.
Nikhil Puruhit
Okay, not to the end of the year as well, right?
Mahendra Nahata
No, not at the end of the year. Not at this point of time. But yes, maybe next quarter I should be able to give you some number.
Nikhil Puruhit
Got it. Okay. And out of the 10,000 for 18, the order book executable is how much for this year?
Mahendra Nahata
This year income out of this particular 10,000, particularly I think 3,000 should be executable in the current year. But more number of orders are being received which are to be executed in the current year itself, particularly fiber optic cable for example. small orders like 40 50 30 crores and which we keep on executing. But out of this 10 000 crores it should be around about 3000.
Nikhil Puruhit
3000. Okay, got it. And what is the PLI we are expecting for this year?
Mahendra Nahata
And we are not expecting any PLI this year.
Nikhil Puruhit
Okay, so this is. I think quarter three FY25 we had talked about some PLF around 40-50 crores in FY26. So this is not coming?
Mahendra Nahata
No, we thought we would receive, but we could not reach to the level of, you know, commitment we had made in terms of, you know, the revenue from indigenous manufactured products. So we really could not reach to that level. It is our mistake that we projected high numbers in the beginning. We should have projected lower numbers. We would have got realization.
There was no bar on projecting lower numbers. We thought we should be able to do more, but there was not so much of demand for indigenous manufactured telecom products and fiber optic cable is not a part of that PLI list. So it’s unfortunate that we did not get AOPRI. And not do we expect anything in this current financial year.
Nikhil Puruhit
Okay, okay. And what will be the targets for this year?
Mahendra Nahata
Capex for this year. Give me a minute. I’ll come back to you before we end this. I think currently about 250 crore, you know, because about 130 crore is going in ideal cable itself and something will go on optical fiber facility and manufacturing. probably about 250 crores. You can see in the full year.
Nikhil Puruhit
Okay, got it. Just one last question. So, OFC, you mentioned 2400 crores this year from 1200 crores last year. Could you give an estimate for the defense sector as well? The defense segment? What revenue are we targeting?
Mahendra Nahata
I could not give an estimate, but maybe, you know, if I current acquisition if you take from me, my best destination could be leading to about 200 plus crores, you know, 200 plus crores, something like that. Again, this is a very top of the head estimate I’m giving you because I must answer your question, but about 200 crores, I would say.
Nikhil Puruhit
Okay. Okay. And we stick to the 15. What’s our margin guidance? Sorry.
Mahendra Nahata
Margins have been different.
Nikhil Puruhit
No overall, overall.
Mahendra Nahata
Overall margin level here is fiber optic cable. I expect to be about 15 in 20 it is about six to eight percent or sometimes little bit more environment or, you know, overall 68% is in 20. I would say those are the kind of margins. Telecom products again depends product to product time to time. situation to situation. In my last quarter, the telecom product margin was very low.
Nikhil Puruhit
Okay. Okay. Got it. Thank you. Those are my questions. Thanks.
Operator
Thank you. The next question is from the line of Abhishek from Neste Wealth LLP. Please proceed.
Abhishek Leekha
Yeah. Thank you, Mahendra Nahata, for the opportunity. Just wanted to have your understanding on last financial we did a revenue of 4064 crores and this quarter we are at 871 or 869 crores, something like that. So if we assume 25% growth rate, we have to do somewhere on 4200 crores in this nine month period, which is approximately 1400 crores per quarter. So are we on it?
Mahendra Nahata
Yeah, we are on it. I am not thinking that the Q2 would be 1400 crores. So Q2 would definitely be better than the Q1. and every quarter we will increase. And I’m quite confident that, you know, 25 increase in the revenue would be here. Looking at the order book itself and the kind of orders we are receiving, we should be, you know, able to reach out of the 10 000 crore, 3000 crore should be executable in this year itself. Then there will be more orders coming up in the current financial year. So I, I don’t have, you know, any reason to believe that it could not increase by 20%.
Abhishek Leekha
And Q2, can we expect Q2 to be profitable now? PAT positives?
Mahendra Nahata
Well, I don’t know at this point of time, it’s too early to say, but revenue is going to be definitely far better. And with the increase in revenue, definitely marginal costing and, you know, overall overhead, you know, per unit of revenue goes down. so, you know, I wouldn’t give any guidance, but yes, it would be better than current quarter.
Abhishek Leekha
Okay. Thank you. And coming to the DRDO fuse part. So if, if we are able to do the test and all, DRDO is able to do the test and that’s pass. How can, how early we can have the order flow from here? Because last time we had mentioned that we have confirmed the orders which were wanting certificate from DRDO. INR800-odd crores kind of.
Mahendra Nahata
That was not for handheld grenade. That was for fuse. We had orders. We had order of 700 crores for exports. It was confirmed. But the testing could not happen. It was not our fault because ammunition was not supplied by government and this order had to go. You know, nobody would wait for us. Now we have got that ammunition testing needs to take place in August. And hope that would be successful. No reason not to be. If it is successful, yes, orders, plenty of orders would be there for electronic devices.
Order is not going to be a problem. Handheld, if the testing is successful, which again, I believe it should be, it’s not such a complicated product and technology from DRDO. So there is a reasonably good demand, but I don’t know at this point of time, we have not gone to the market. Aggressively, you know, selling this product. But we have got alloys from one or two countries for buying multiple hundred grids. But once I made the attack, then I will accept it.
Abhishek Leekha
Okay. Okay. And one more, one last thing on the DRDO fuse test part. Let’s say it doesn’t come to the expectations of DRDO. So how long will have to again wait for the next round of emulation?
Mahendra Nahata
Look, you know, first of all, I don’t think there is any reason this time that it will not come to the expectation of the DRDO. Last time also out of some how many fuses fired, only one type of fuse had one small problem. So there was a, you know, remark in the, I didn’t want to go with that remark to the market. So I don’t think there should be any problem this time in the you know, finally certifying the product. But if we let a resume, it doesn’t happen. So this time, I’m not even thinking. It would not be so late. Maybe two to three months’ time.
Abhishek Leekha
Okay. Okay. Thank you. Thank you so much. That’s it from my side.
Mahendra Nahata
Thank you.
Operator
Thank you. The next question is from the line of Kush from Analyst Asset.
Unidentified Participant
Hello? Am I audible?
Mahendra Nahata
Please, go ahead.
Unidentified Participant
Yes. So my doubt is about on the realization only. So if we have…
Mahendra Nahata
I could not hear you, speak loudly.
Unidentified Participant
Hello? Am I audible?
Mahendra Nahata
Yes, go ahead.
Unidentified Participant
Yes, sir. So my doubt is [Technical Issue].
Mahendra Nahata
We can’t hear you. Your voice is going up and down. Your voice is going up and down.
Unidentified Participant
Hello? Am I audible now?
Mahendra Nahata
Yes.
Unidentified Participant
So out of order book of INR10,000 crores, how much is of — from EPC?
Mahendra Nahata
I will tell you. Just give me a second. out of that about 6400 crore would be for EPC.
Unidentified Participant
And how much are you expecting it to convert it into the realization in this year?
Mahendra Nahata
Look you know out of the total 10 000 crore I am seeing about 3000 crore will be converted into this year now the EPC of 6494 I would say 2000 crore something like 2000 crore should be convertible…
Unidentified Participant
Okay, so which means around 1000 crore would be from our products. So it…
Mahendra Nahata
Out of this 10 000 crores, you know, but there would be more order filling it.
Unidentified Participant
Okay. Okay. And sir, on the, on the, on the optical fiber cable. So we are already around 100 utilization. So when we are expecting to get the additional, uh, additional, uh, this capacity as we are. doing capex?
Mahendra Nahata
Look, you know, additional capacity has already started coming in, has already started coming in. And when I say 100% capacity utilization, it really started picked up from the month of July, you know, as I said, brother, June was better. July has even been better. And, you know, there are so many different kind of cables you produce. So not that every cable you produce is 100% of capacity. Somewhere less than 100% also.
But overall, you know, we are reaching to, you know, again, you have to realize one more thing. You know, I am going never too technical. Can you say 100%? There is always a variation between installed capacity and capacity which you can produce. Installed capacity people count in the same type of cable being produced continuously, which doesn’t happen in real life. because, you know, cables, customers, these venue requirements keeps on changing.
So real capacity becomes roughly about 80% of the installed capacity on the single cable basis. So you have to take that 80% as 100%. From there you have to go on. So right now in July month, you know, we should be, you know, reaching about 80% of that 80% because that 80% is a real capacity. and then the expansion capacity has already started happening and it will be fully completed by March.
Unidentified Participant
By March. So we are confident that we’ll be able to do 2400 crores from the current capacity and the future capacity…
Mahendra Nahata
Absolutely, absolutely confident. Fiber optic cable division with all its connectivity solutions and all put together would definitely expected to do 2400 crores. You know, these are going to be a big kicker system. Fiber optic cable going to be double in last year. Defense production is going to start. We have got large order from BharatNet.
We have got started producing routers. We are the only second company Indian company to do so after Sages to produce routers independently. We got orders of 650 crores for routers. More orders are expected. We have supplied 600 crores worth of locally designed and produced 5G products, unlicensed radios.
You know, we have supplied half a million till now, not in this year, but overall half a million. So all these are big tickers this time in the current financial year for our company.
Operator
Thank you. Due to time constraints, that was the last question. Investors can directly reach out to the Investor Relation team for further questions. I would now like to hand the conference over to the management for the closing comments.
Mahendra Nahata
Thank you very much to all the investors and the participants in the call. and I really appreciate your time and effort you have made in joining our call and thank you very much. Thanks a lot.
Operator
On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your line.