HFCL Limited (NSE: HFCL) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Mahendra Nahata — Managing Director
V R Jain — Chief Financial Officer
Analysts:
Unidentified Participant
Vikash Singh — Analyst
Balasubramanian A — Analyst
Bajrang Bafna — Analyst
Smith Gala — Analyst
Sanjay Shah — Analyst
Pushkar Jain — Analyst
Arun Malhotra — Analyst
Saket Kapoor — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the Q3FY26 earnings conference call of HFCL hosted by ICICI Securities Limited 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. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Vikash Singh from ICICI Securities Limited PA. Thank you. And over to you Mr. Singh.
Vikash Singh — Analyst
Thank you Michelle. Good afternoon everyone. Before we begin, I would like to read the disclaimer the statement made during this call may be forward looking and in nature based on management’s current beliefs and expectations. They must be viewed in relation to the risks that HFCL’s business faces that could cause its future results, performance or achievement to differ significantly from what is expressed or implied by such forward looking statement. Investors are therefore requested to check the information independently before making any investment or other decisions.
From the management side which we have with us Mr. Mahendra Nata, Promoter and Managing Director, Mr. V.R. jain, CFO Mr. Manoj Bet, Company Secretary and Mr. Amit Agarwal.
Without taking any much time, I’ll hand over to Mr. Mahendra Natha for his opening remarks. Over to you Sir.
Mahendra Nahata — Managing Director
Thank you Vikas. Good evening everyone. I extend a warm welcome to all of you on HFCS earning call for the third quarter and nine months ended December 2025. 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. The quarter was characteristic by a combination of near term volatility and strong long term structural opportunities. Globally evolving tariff structures, trade realignments and supply chain recalibration led to certain logistical and execution challenges during the early part of the quarter. However, these conditions stabilized from mid December onwards enabling smoother dispatches and supply flows.
At the same time, the fundamental demand drivers for optical fiber cables have strengthened immensely. Rising data consumption, hyperscaler led data center expansion, AI driven network upgrades and growing need for secure high capacity connectivity are driving a sustained global upcycle in optical fiber cable demand in India. Continued focus on fibrization, digital public infrastructure and defense indigenization provides long term visibility across HFCL’s core business segments. The optical fiber cable market has witnessed a sharp increase in demand on the count of massive increase in hyperscale data centers creation worldwide. Moreover, after a period of inventory correction and deferred capital expenditures.
The global optical fiber cable industry has also witnessed a clear restoration in demand over the last few quarters from telecom operators. Importantly, this recovery is structurally different from earlier cycles. Demand is increasingly squid towards high fiber count high performance cables as required by hyperscale data centers. Supply of such cables remain constrained due to higher technology complexity, manufacturing precision and scale requirements. As a result, the improving demand environment has translated into better ofc pricing and realizations with customers placing greater emphasis on quality, consistency and delivery reliability. Modern hyperscale and AI focused data centers require extremely high fiber density, ultra low latency interconnections and scalable designs to support east west traffic storage, clustering and high performance computing workloads.
The Union budget of 2026 has further enforced the policy focus on strengthening India’s digital and DICE data infrastructure ecosystem. Measures such as the extended tax holiday for foreign cloud service providers who will set up data centers in India underscored the government’s intent to position India as a long term hub for cloud data centers and AI led infrastructure. Massive growth of hyperscale data centers has resulted in a meaningful ramp up in hyperscaler led orders, multi layered demand visibility and sustained capacity expansion plans across the optical communication ecosystem. HFCL has been preparing for this phase through sustained investments in optical fiber and optical fiber cable manufacturing combined with focused innovation.
As a result, we are today amongst a limited set of global players capable of delivering very high fiber count and low latency solution at a scale. During the quarter we successfully developed 3,456 fiber count microduct IBR cable. Building on this capability, we are now in the process of developing 6912 fiber microduct IBR cables. Very few manufacturers globally possess the technology depth and manufacturing discipline required for such products, further strengthening HFCS competitive positioning. These products are well suited for dense space constrained data center environments and has already seen encouraging customer interaction and traction based on current engagements and pipeline visibility.
We are seeing continued demand momentum into the coming quarter and we expect this trend to keep the same momentum for the next few years as data center and AI led infrastructure deployments accelerate in parallel, HFCL has moved beyond cables to data center interconnect solutions. We have initiated our pre connected solutions business for data center applications enabling faster deployment, higher reliability and reduced installation complexity for customers. We expect the PCIS business to contribute 400 to 500 crore rupees of additional revenues over 2627. Further, we have commenced production of MPO cables which are increasingly essential in high density data center and AI environments.
This is a fast growing segment and we are expanding capacities and capacities to scale this business meaningfully. Over the coming years we expect MPO and related interconnect solution to degenerate 400 to 500 crores of revenue strengthening HFCL presence across the full data center connectivity value chain. Taken together, these capabilities position HFCL not merely as an optical fiber cable supplier but as a comprehensive solution provider for next generation data center and AI infrastructure with visible demand momentum in the near term and strong growth Runway ahead. Another important structural development shaping the outlook is the progress of the India, United States and India European Trade Engagement United States and Europe remain largest and most advanced markets for optical fiber cable, digital infrastructure, secure communication networks supported by sustained investments in fiberisations and data centers.
A more enabling trade framework has potential to improve market access, strengthen supply chain integration and enhance the competitiveness of Indian manufacturers with scale and technology depth. HFCL already has a growing presence in United States and Europe and our recent export wins reflect increasing acceptance of our high quality high fiber count solutions. Our fiber and cable capacity expansion programs continue to progress steadily. Optical Fiber and Cable Capacity Optical fiber capacity will rise from 30.5 million fiber kilometers to 42.36 million fiber kilometers by June 2026. Optical fiber capacity has already been doubled from 14 million fiber kilometers to 28 million fiber kilometers with a balanced 6 million fiber kilometer to be added progressively by December 2026.
These expansions enhance our ability to support rising global and domestic demand while improving operational efficiency, automation and cost competitiveness. With capacity expansion nearing completion and global demand conditions continuing to strengthen, we expect the optical fiber cable segment to contribute meaningfully higher revenues from quarter four of financial year 2026 onwards. The combination of scale, product depth and improving industry pricing dynamics gives us confidence that optical fiber cable will remain a key growth and value driver for the group. Exports remained a key highlight during the quarter and continue to be a structural growth engine for HFCL. During quarter three of FY26 we secured export order significant approximately US$192million, largely driven by optical fiber cable demand from international customers.
Exports continue to gain share within the overall revenue mix. During quarter three of FY26, export revenues accounted for approximately 27% of total revenues compared to 14% in quarter three of FY25, reflecting a signal significant structural shift in the business. Domestic revenues accounted for the balance 73%. This sharp increase in export contribution highlights HFC’s growing global footprint, improved acceptance among international customers and successful execution of its export led growth strategy. Development of new generation of WI FI and UBR telecom equipment continue to be our focus. We are also in process of completion or delivery of 8 lakh units of 5G fixed wireless SX customer premises equipment.
We are also in continuous process of developing more advanced versions of Customer premises equipment of 5G to be sold not only India but worldwide. Production and supply of IP MPLS routers has also started in bulk across the country from quarter three. These routers are being supplied all over India for the government’s BharatNet program. We are in constant process of developing even the high capacity routers beyond the routers which have already been developed now. EPC project execution revenues remained relatively subdued during the quarter. However, it is important to highlight that while revenue recognition was slower on ground, execution planning and preparatory activities remained steady and disciplined which are expected to translate into a meaningful revenue uptick in the coming periods.
HFCL continues to progress its defence business in line with long term strategy and India’s indigenization priorities during the quarter. Electronic fuses developed by the company underwent firing trials in January 2026 with further tests expected in coming months. HFCL secured defense orders across radars, electronic fuses and electro optic systems including thermal weapon sites, reflecting growing acceptance of our indigenous capabilities. We also entered the UAV segment with indigenously developed thermal cameras for surveillance applications supported by a domestic contract from a leading UAV manufacturer. Development work is in progress well across drone detection radar systems and foliage penetration radar, both of which are in advanced stage of validation.
In addition, HFC is actively working on specialized drone platforms through technology transfer initiatives which is at an advanced stage of discussion. Looking ahead, the radar segment is expected to emerge as an important contributor over the coming years supported by growing pipeline and upcoming demand opportunities, including the expected RFP under the BMP program wherein HFCL is one of the five shortlisted parties from Countrywide. Our order book as on 31st December 2025 stands at 11,125 crore compared to 9,981 crore in quarter two of FY26 and 10,410 crore in quarter three of FY25, reflecting sustained order inflows and improved visibility.
The mix of our revenue continued to improve. Product revenues constituted 60% of total revenues while project revenues accounted for 40% compared to 51 and 49% respectively in quarter two of FY26. Exports contributed 27% of the revenues during the quarter, up sharply from 14% in quarter three of FY25, highlighting the growing global relevance of our product portfolio. During the quarter we successfully completed an issue of 550 crore rupees through qualified institutional placement. This capital raise will support capacity expansion, R and D investments, debt reduction and and funding our long term working capital requirements ensuring we remain well positioned for sustainable growth.
During the quarter, HFCL received ESG ratings from multiple independent agencies, all reaffirming the strength of our sustainability practices. We also published HFCL’s first sustainability report for FY2425 providing transparent disclosures of our environmental, social and governance performance. For us, sustainability is central to every aspect of how we operate and build long term value. It shapes our choices on resource efficiency, guides how we engage with communities and partners and anchors the trust we build across markets. Our ESG efforts are therefore integral to strengthening HFCL competitiveness, resilience and reputation as we grow friends coming to our consolidation Consolidated Financial Performance for the quarter revenue for quarter three FY26 stood at 1210.79 crores compared to 1043.34 crores in quarter two of FY26 and 1011.95 crores in quarter three of FY25.
EBITDA stood at 243.52 crores compared to 203.36 crores in Q2 of FY26.171.89 crores in quarter three of FY 25 with an EBITDA margin of 20.11%. Profit after tax stood at 102.37 crores compared to 71.92 crores in Q2 of FY 26 and 72.58 crores in Q3 of FY25 with a PET margin of 8.45%. Revenue of nine months FY26 stood at 3125.15 crore compared to 3263.8 crore in nine months of FY25. EBITDA Stood at 489.82 crores in nine month of FY26 compared to 529.08 crore in nine months of FY25 with an EBITDA margin of 15.67% profit. Average tax stood at 144.99 crore in nine months of FY26 compared to 256 crores in nine months of FY25 with a PET margin Of 4.64 crore percent.
As we move forward, our priorities remain firmly focused on Enhancing our revenue mix, expanding margins, disciplined execution, technology, led differentiation, prudent capital allocation and the continued expansion of our global footprint. Building on the strong momentum achieved, we remain confident of sustaining this performance in the coming quarters. With these foundations in place, we believe HFCL is well positioned to deliver consistent and sustainable value for our stakeholders. I would like to thank you, our employees for their dedication, our customers and partners for their trust and our shareholders for their continued support.
Thank you. We will now open the floor for questions.
Questions and Answers:
operator
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press Star and one on the Touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only 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 Dhaval Jain from Sequent Investments. Please go ahead.
Unidentified Participant
Am I audible sir?
Mahendra Nahata
Yeah, yeah.
Unidentified Participant
Yeah. So firstly congratulations on good set of numbers. So I just needed a help with Q3 as well as 9 month FY26 data of OFC as a percentage of total revenue. And if possible can you provide me with the similar numbers from the last financial years and along with the margins.
Mahendra Nahata
Well, OFC as a percentage of total revenue. Minute because I’ve got products at 722crore and out of that that of and ofc has roughly it would be. I would say no this of the product revenue it is 80% and the product revenue is 60% of the total revenue. So it would say the 48% of the total revenue has been OFC.
Unidentified Participant
And this is for Q3 or nine month FY26.
Mahendra Nahata
This is nine months. Just what I told you, the nine months.
Unidentified Participant
Okay, so and what is the current margins on OFC that we have right now?
Mahendra Nahata
Current margin on OFC would depend from different kind of cable. You know what we manufacture. High quantity, high capacity cable, low capacity cable for roughly you can say 10 to 12% net margin.
Unidentified Participant
So can you, can you repeat again, I just lost you on the line.
Mahendra Nahata
You know roughly it would be about 10 to 12% of you know margin as PBT depending on what kind of cable we are manufacturing.
Unidentified Participant
Understood. So again on the this front, on the OFC what is the current realization in this quarter that we had? Because I think last quarter it was 965 rupees per. So what is the current realizations?
Mahendra Nahata
Current realization would be roughly about 1055 rupees per fiber kilometer as against 964 which was there in the previous quarter, it has gone up by roughly 100 rupees you can say.
Unidentified Participant
Right. So we like. It’s almost a 10, 15% of increase since the last quarter. So do we see like it going to keep on increasing further or what cycle are we at in terms of realization?
Mahendra Nahata
I expect it to increase further by at least another 10% or so. Looking at the demand from data centers, I expect it to increase at least 10% or even more.
Unidentified Participant
Right. And just one last question. So in terms of legal ofc. What is our share in domestic versus international markets?
Mahendra Nahata
Look, international market I cannot say because that I don’t have available for the domestic market. We should be. You know this again a very unsubstantiated figure because these are never published by any authentic agency. But my estimation we should be Nearing roughly about 50%. Roughly about 45. 50%. Very roughly. You know this is my top of the head calculation which I shouldn’t be much wrong.
Unidentified Participant
But this, this would be yours is right?
Mahendra Nahata
Yeah, I am. My share. I’m talking my share.
Unidentified Participant
Right. Okay. So thank you. I’ll get back on the queue.
operator
Thank you. The next question is from the line of Bala Subramanian from Arihant Capital. Please go ahead.
Balasubramanian A
Good evening sir. Congratulations for a good set of numbers. My first question sir, I think these have been developed electronic users. I think we got initial approval also. Then we can expect final approval. And what is the total addressable market in India and global level? Which are the players got approval in India and how much average prices perfuse?
Mahendra Nahata
We are asking too many questions in one line, you know, I wouldn’t even remember. So I rarely reply one by one, you know. As far as approval in India is concerned, there are only two companies who are manufacturing electronic fuses from long time under transfer of technology from foreign companies. They are not their own developed fuses which is Bharat Electronics and ECI Telecom, both government companies. They have a transfer of technology agreements. One from Reshape of Israel, another from. I forget the name of the company of South Africa. So we are the one who have designed the fuses indigenously. Firing. Test firing took place on 20th January in Balasore this year. There have been some successes and some cases some improvement is required in the fuses.
So we are doing that improve those improvements which have been required by DRDO while testing. So those improvements are being carried out and retesting of those fuses will be done in April. And I Am quite sure this April testing they will be completely approved. So that is as far as the Indian manufacturers and you know approval are concerned. There is no indigenous design and manufacturer who have got any approval. I am sure. I think we may be the first one to do that. You know. But these are you know one must realize fuses are very very critical components.
You know which makes the ammunition blast particularly the proximity fuse has got a small radar in it which measures the distance between the bomb and the ground at a speed speed which is faster than a speed of sound. You can imagine that what kind of criticality it has got. So it needs some more improvement. So which we are doing. But I am happy that you know from this testing we have learnt few things which are implemented in getting implemented in the new set of design and appeal. Testing should be final and approval 1. It looks to me like that.
Now in terms of demand, you know I don’t have a number for the worldwide demand but right now India itself I think requires about half a million fuses every year. India itself and globally if you see the demand would be much much higher in multiples because of the wars going around. You know this demand is directly proportional to the geopolitical situation right now with the Russia, Ukraine war and ammunition of all European countries, United States getting, you know or you know many other countries going to Russia or Ukraine getting consumed. These countries need to really build up their stockpile again and supply more to the warring countries whether it is Russia, whether Ukraine or any other place.
So demand is substantial. You know proximity fuse demand is substantial for 155mm gun. That is the highest demand, a substantial demand. So I don’t have the exact number but demand would be multiple times more than what is required in India.
Balasubramanian A
Okay sir. So follow with electronic uses only. And what is the current like average prices fair fuse on the industry level.
Mahendra Nahata
Which depends on which fuse which caliber you are talking. There are different visit different calibers. But just one example of a proximity fuse of 155mm gun would currently in today’s market should be at least 25 to 30,000 rupees for fuse.
Balasubramanian A
Okay sir. And what kind of capacities we are planning to build sir for electronic fuses. Right.
Mahendra Nahata
Well when our fuses are completely approved we would be looking at about 1 lakh fuse per annum.
Balasubramanian A
Okay sir. Actually we have guided a 20% kind of revenue growth. We ended up nearly 20% kind of growth in Q3. I think we have to do or to achieve growth by doing nearly 1600 crore plus kind of revenue Is there any deferment in export order? Is there any delay in shipments in Q3 because of tariffs? Currently also US and India, that trade deal have been improved from 50% to 18%. I just want to understand how we can able to take advantage of this. And secondly.
Mahendra Nahata
Look, you know, this tariff decrease has been announced last night only and you know, doing some guesswork, you know, some clarity is still to be achieved in terms of whether it is immediate or whether there will be some gradual. But assuming it is immediate, of course it opens up the environment for everybody and improve the situation for all in country manufacturers. For, you know, all. Particularly for telecom equipment, the tariff was 50%. So if it, when it comes down to 18%, it is a substantial advantage to all telecom equipment manufacturers. Now in terms of revenue, of course, you know, revenue shortfall was there in the Q3, particularly on the export segment because of the tariff issue.
Lot of shipments which were made by us to United States, for example, to United States, which are the major part of export. All those shipments are stuck at the airports or the seaports for the want of clearance because of the tariff issue. Because it was getting very extremely difficult at US Customs to determine the tariff whether the tariff of India applies or tariff of China applies because some of the component or part has into that equipment or cable has come from China. So you know, this was really a big, big problem. So for two months time it remained a big problem for everybody.
Not only for hfcl, for everybody and many of the countries, you know, where this difference of tariff was coming, whether shipment is in a 25% regime or 50% regime, you know, all these kind of situations were there one and a half month we all suffered and unfortunately we had to pay lot of damages also at the ports or the airports because not to our fault that shipments were not getting cleared, but because ambiguity in the tariff structure, it was creating trouble and we had to pay a lot of damages also. But anyway that was out of our control.
That problem, as I said in the beginning, eased out from mid December and now the situation has become absolutely regular and there shouldn’t be any impact going forward. And going forward I think our revenue in this current quarter would also show some growth percentage. I cannot say very clearly at this point of time. But yes, it can be somewhere around 10 to 15% or little bit more. But more important is the profitability. You will see the profitability percentage on an overall basis has increased by year to year basis. You see there is an increase of 41% in the profitability revenue is still remaining around the same.
But the profitability has increased by 41, 42% which is a significant growth. You know that growth has come because of our efforts to reduce cost at the same point of time, innovation, new kind of products and because of being able to design and manufacture those products which are not so easy to design and manufacture. You know like very high count fiber optic cable, not so easy to design and manufacture which we have been able to do. As a result of this there has been a better profitability. So key issue which I would like to say, yes, there is some shortfall in revenue than what we expected in terms of growth.
But there is a considerable increase in the profitability. Q one of the current financial was a loss but now we have come into profit and as I can see looking forward, you know, just as a you know perception of the management from current performance, when we come to the year end our profit would be much better than what we did last year. It would be much better. Even if we maintain the momentum which has been there in Q3, our profit would surpass the profit of last financial year significantly.
Balasubramanian A
Okay. Sir, you clearly mentioned.
operator
I’m sorry to interrupt you sir. I will request you to kindly rejoin the queue for follow ups. There are others.
Balasubramanian A
Thank you sir.
operator
Ladies and gentlemen. Thank you sir. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to only two per participant. Should you have a follow up question, please rejoin the queue. The next question is from the line of Bajrang Bafna from Sunidi Securities. Please go ahead.
Bajrang Bafna
Congratulations for good set of numbers. Mandirji. Just would like to understand because there are multiple media articles and we are hearing from the industry sources that there is a severe shortage of raw material which is your germanium and plate preform. And since we don’t have those capacities with us, how the prices of these have moved and what sort of supply arrangements that we are having, you know for this preform and the other raw materials. If you could just guide us will be really helpful sir.
Mahendra Nahata
You know, very good question. But you know we don’t manufacture preform, you know, so germanium and all these are required for manufacture. We import from mostly from Japan. More than 90% we import from Japan and whatever quantity we have contracted with Japanese manufacturers are being supplied regularly to us. We do not face any shortage. No shortage is being faced by us at all. They are supplying to us as they have contracted. And you know our capacity requirement for our fiber draw for which the preform is required is being fulfilled by Japanese manufacturers. Yes. We are also now taking steps to move ahead in manufacturing Preform.
You know, this is another step company is working on and we should be able to finalize our plans in very near future. Because with this kind of a huge capacity requirement where we require preform to in such a large quantity because huge capacity of fiber and cable both we need to have some security for some raw material also, some part of raw material also. So we are working on that plan. But right now we don’t need germanium and all those things. You know, our requirement of preform is filled up by our suppliers adequately.
Bajrang Bafna
And how the prices have moved, sir.
Mahendra Nahata
Look, prices will move up. Our contracts which were there are in process at this moment of time. Those prices, whatever we agreed few months ago. But as far as my opinion is that prices would move up significantly by at least 20%. At least 20 to 25%. With the result I am seeing an increase in the cable price of 10% and it will move up by another 10% or so in near future. Similar is the fiber price and similar would be the preformed price. It will move up by some 20, 25%.
Bajrang Bafna
Okay, and my second question is on the the new age cables which are required in hyperscalers and in your rollout of data centers which is either hollow core or multi core. So how are we placed in that technology? And you know, how do we see that, you know, the demand that we capture either in India or in US or European market.
Mahendra Nahata
Age, very early stage of this kind of fibers, multicore fiber, I don’t foresee much of the demand happening because multicore is, you know, it does not reduce the transport cost, it only reduces the space required by fiber. But you know, already there are technologies available where we are packing, you know, up to 13,000 fibers into one single cable of a small DIA. So multicore fiber, I don’t see so much of a high demand in future. But hollow core fiber, yes, it may catch up. It is in very early stage of development.
Very, very early stage of development. We have also tied up with two large institutions of RD to develop hollow core fiber ourselves. So we are in already in process of development of hollow core fiber. There is a dedicated team which we have put forward, put in the place in the company with certain R and D institutions to develop hollow core fiber which we believe would catch up some attention of the hyperscalers like Microsoft have bought this luminosity and all that. But it is still couple of years away, but we are already taking steps to develop hollow core fiber.
Bajrang Bafna
Got it, sir. Thank you. And all the very best, sir. And we’ll join in the queue.
operator
Thank you. The next question is from the line of Smith Gala from RSP and Ventures. Please go ahead.
Smith Gala
Yeah, thank you for the opportunity. A couple of. To start with, I want to bookkeeping questions. So you mentioned previously on the that we’ll be growing 10 to 15% on revenue. This is my understanding correct that this revenue growth will be sequential. Secondly, we have seen a big uptick in the depreciation expense. So what are the levels or the run rate going forward? We’ll see. Or this is the run rate we should follow for the next couple of years from now.
Mahendra Nahata
Now your second question of depreciation. You know the fiber optic, new fiber optic fiber plant has come into operation so that you know depreciation charged on that new plant. So that’s why the depreciation has increased. Seen some increase. What was your first question?
Smith Gala
Yeah, my first question. You mentioned on the call that 10 to 15% growth. I understand this growth. It will be sequential growth and not.
Mahendra Nahata
Yeah, it will be sequential, of course.
Smith Gala
Okay, next question from my side will be we are on track to expand our capacities as far as IBR cables are concerned because we do not. We have not seen any rise in capacity from past quarter. So had the expansion stop for the 1/4 there was some minor disruption or something like that.
Mahendra Nahata
We are in fully on track to develop IBR capacity because that is the only way you can pack 3,600 or 6,900 fibers in one cable. You know, that is the only way. And we have significantly expanded our IBR capacity and it is continued to be getting extended and it will keep on happening till May June. For which machinery orders are already in place and machineries are arriving one by one by one because the machines are not available altogether. They, you know, there are very few manufacturers of those machines. Quality machines, you know, non quality. You can buy as many which you do not want.
So they are coming one by one. That capacity is under continuous enhancement. Would be completed by May June of this financial year. The current rate, current, you know, expected capacity. But if we find more demand coming up, which I am certain that it would come up. But fiber availability may become a constant. But cable demand would be there. But if we are able to solve the fiber issue, we would be expanding the capacity further.
Smith Gala
Okay, one last question. I’ll squeeze in. Can you give me a split between the 5G products and OFC For this quarter quarter three.
Mahendra Nahata
It’s about 80, 20.
Smith Gala
Okay, so it is. It’s 8020 of the 722 which we have provided.
Mahendra Nahata
Yeah, yeah, absolutely.
Smith Gala
Yeah. Thank you. I’ll join back.
operator
Thank you. The next question is from the line of Sanjay Shah from KSA Securities Private Limited. Please go ahead.
Sanjay Shah
Yeah. Good evening sir.
Mahendra Nahata
Good evening.
Sanjay Shah
Giving fantastic understanding about the market demand and growth trajectory of the hfcl. So my question was regarding our plan expenditure. What we need to do in 329 acres we have got Andhra Pradesh and which are the products are we going to develop over there and how that commercialization of that project will start.
Mahendra Nahata
Mr. Shah, thanks a lot for a good question. First of all, this 329 acres would be eventually,000 acres balance 600 some 73 acres or so is still to be allocated by Andhab government which they are going to allot contiguous to our land which is under their acquisition process and all that. That is number one. So total it would be 1,000 acres. The plan to do is to manufacture ammunition there ammunition needs a large space to manufacture because there should not be any habitation near about places. Because if any unfortunate accident takes place human life should not come in danger in any unforeseen circumstance.
So you need a large open space by law to manufacture ammunition. For example, we already have taken technology for multimode hand grenade from DRDO which has been successfully manufactured and tried by technology provider DRDO. And now it is under the approval of QA wing of DGQ award. We call from army because of, you know, time frame you can preserve this and all those kind of things which is happening right now. And in next three months time we should be able to offer it to army for the requirement for which demand is immense. Lakhs of the grenades are required every year just for practice.
Every infantry soldier or the other soldiers have to, you know, throw three grenades as a practice every year. So you can imagine, you know, kind of a lack of the requirement which is there. So this is just one. We are also exploring the possibility of manufacturing more ammunition also more ammunition means ammunition fuse. We are already in the process of development and final phase of development after the current field trial and the next field trial. See, we also wish to develop the shells for 155mm gun which we have fused already. We are developing. We are also working on some of the ammunition for precision guided ammunition.
One is the dump ammunition which you fire and it goes and falls depending upon your aim and all that but then there are some precision guided ammunition which, which is fired and it goes with some sort of a GPS or other kind of a, you know, technology gets down to that precise area where it is intended to. So we are in discussion with some companies for doing that also. So this is land is predominantly for the ammunition purposes. That’s why this is a large land required as per law.
Sanjay Shah
So what will be the capex required for that and how we are going.
Mahendra Nahata
To say that, Mr. Shah? Too early to say that at this point of time.
Sanjay Shah
So now sir, we have grown and we have done lot of capex in last few years and we have increased all the capacity in all the fronts and we have now we are here to encase the advantage of that capex and make our company more profitable into utilizing all the capex. Now we need further capex of growth because we, we are going for this new project plus we are going for expansion of our optic fiber capacity and all. And plus the business where we require working capital, inventories and all. So how you plan to raise money? Do promoter intend to increase their stake from here at the the current enterprise value which is the lowest what we feel in the industry?
Mahendra Nahata
Look, you know, first of all increasing the capacity for optical fiber cable will not matter much, you know, will not require much of the money. Of course when we go for creation of any large scale defense manufacturing capacity and all that. Yes, that would require promoters have willingness to increase the stake. We have the willingness but all depends upon shareholders approval, regulatory clearances. It is all subject to that. Willingness is of course there.
Sanjay Shah
That shows great confidence sir. Thank you very much and best of luck for you.
operator
Thank you. The next question is from the line of Sathya, an individual investor. Please go ahead.
Unidentified Participant
Hello. Namaste Nataji. Nataji. My question was on the services side. This time we have seen a loss of about 11 crores on the services side. Why has that been the case and how do you see that going forward?
Mahendra Nahata
Now these are O and M revenues and going forward OM revenues is going to increase significantly. First of all, army’s O and M phases to start for the NFS which we created I think next couple of months or maybe by April maximum. So that would be about 170 crores per year. 170 crore. Then the O and M phase for other equipment we have supplied, you know, which OTN or you know, a couple of other equipment UBR and you know, which we have supplied to bsnl. That O and M phase is to start and some of the private operators we have supplied equipment that O and M phase is to start. So O and M revenue is going to grow significantly. In my opinion, after three years our O and M revenue would be something around 450 to 500 crores per year. Hello. Are you able to hear.
operator
Mr. Satya, not audible.
Mahendra Nahata
Yeah.
Unidentified Participant
Sir, my question was also on the profitability side. This time we seem to have recorded some loss over there. So how are we expecting that to change over the future?
Mahendra Nahata
You know, as you know, you know it is when you are in the warranty period and all that there is expenditure but there is no revenue. Revenue starts after the warranty period is over. So in that kind of a period you incur loss. But when you are entering into O and M phase of the amc the revenue starts coming up. Like as I said in army project, we expect the revenue starts coming up from April when the AMC contract would take shape and start. So then the revenue starts coming. Right now we are spending money but it is not going to continue for more than few months now.
Unidentified Participant
Right, Good. Sir, one question on the 5G equipment side, how is the traction over there on the FW and UBR products that we have?
Mahendra Nahata
Look, you know, UBR is good for 5G, 6G, 4G everything. And that is of course we are now moving into WI FI and UBR all sport together. We are going to move into next Generation from Wi Fi 6 to Wi Fi 7. You know, that’s the plan we have and we should start the development pretty soon. As far as FWHCP is concerned, the in country demand of FWSCP seems to be reducing because people are using alternate technologies based on unlicensed band, point to multi point unlicensed band which we do not do of course we are doing point to point only.
And however routers, routers which are again required in 4G and 5G network both that there we have got a significant traction particularly in Bharatnet because router is required in all kind of networks. You know, whether 4G, 5G, wireline, wireless, every kind of network there we have seen a significant attraction. We have already got orders for about 100,000 routers which would amount to be about 700 or 800 crores. We are in process of getting more orders right now. Even we are not taking many orders for routers because we have a constraint of supply because of component availability and all that.
So we do not want to trouble the customers. We first want to deliver some good quantity then take more orders. But routers have got good traction. They are already being installed in the field, connections are already being given to customers by the people who have bought the routers from us which are the private parties. So that has got a good traction for cp. We now start working on trying to sell it in the international market. So would be UBR and WI FI systems.
Unidentified Participant
Sir, quick follow up on the UBR. We were developing point to multi point. Right.
operator
I’m sorry.
Unidentified Participant
Just a minor follow up. I’m sorry, it’s a minor follow up. We were developing the point to multi point. Right. Sir, are we, where are we in the process of that?
Mahendra Nahata
The point of multimodal we have not yet started developing. We are not yet started. We are just looking at worldwide how much is the demand? You know in India there is a significant amount of demand from one operator but other operators are not using it worldwide. Unless we see, you know, multi country demand we would really hesitate to do that, you know, because just because demand of one customer and in one country. We don’t want to take an expensive government day by like that. On the contrary, point to point demand is good and the development expense is also less.
It’s less risky. So unless we are hundred percent satisfied about point to point multi point demand worldwide, we would not really go into that. You know it’s a spectrum issue. If you look at the large development United States, all that operators have a much larger amount of spectrum. So they don’t need unlicensed band radio. They are very happy within the license band and they can give large capacity to large number of customers using the license band. So that is the difference.
operator
Thank you sir. We’ll take the next question from the line of Rishabh Basa from Insect securities and Finance limited. Please go ahead.
Unidentified Participant
Yeah, hi sir. First of all, congratulations on a good. Set of numbers in 3Q FY26. Sir, I wanted to know from an AI and a data center perspective what are the kind of opportunities we are seeing for our products and services portfolio? What is our current position versus our closest peers? And also what kind of benefits do we foresee from the recent favorable budget announcements? So can you just put some color so that it becomes clear for us?
Mahendra Nahata
I would not put color, I will put the plain color as it is. S o you know basically data center and hyperscaler demand is really propelling the fiber optic cable and associate industry as far as HFCL is concerned to a very next level. Because if you look at the telecom operators, the cable required, you know, maximum 288 fiber. We never supplied more fiber count than that to any Telecom operator. Now data centers don’t even look at 288. They are talking of 3900 fiber cable, 6800 fiber cable. You know that kind of a cable capacity. So per km cost is multiple high, multiple high.
So revenue also would go up. And since those kind of cables are manufactured by very few people because not everybody has the ability to design, develop and manufacture those kind of cables which is very good for HFCL because we are one of the company who are designed, developed, have got machines to be able to manufacture those kind of cables which has really lifted our optical fiber cable business to next level. So it has provided a very, very large opportunity for companies who have got this technological and manufacturing capacity. Moreover, we did the expansion in right time.
We could foresee this demand coming up. We did our expansion as a result of that. Not only expansion but design also as a result of that. Today we are able to supply to these customers who are using these kind of cables all across the world. You know, we are not supplied in India. Everything what we produce of this kind of cable is getting exported. There is so much of demand we have and in fact now we have to refuse orders because we don’t have capacity to manufacture that kind of requirement or the demand which is coming up now.
Second opportunity which this market has given is passive connectivity solution like MPO cables, like other passive connectivity solution which as I said in the beginning is going to get us at least 500 crores of revenue in the next financial year. At least 500 crores or people have gone abroad, got trained on various kind of technologies. Manufacture of those passive connectivity solutions have come back pretty recently and we have started receiving orders for those PCs connectivity solutions. And once we complete initial order Supply, you know 4 to 500 cores looks pretty easy to achieve. So demand is there for fiber optic cable, demand is there for accessories. Passive connectivity solutions which has given us very good opportunity.
Unidentified Participant
Thank you sir. The information was quite helpful. Thank you.
operator
Thank you. The next question is from the line of Abhishek Kumar Likha from Nest wealth llb. Please go ahead.
Unidentified Participant
Good evening. Congratulations on good set of numbers. My question is on fuse tests. Management was quite confident on the fuse test outcome as per last many calls. And given that fuse test took almost 18 months to rectify and meet standards, what comfort can the management provide from here on its commercialization and timelines from here on?
Mahendra Nahata
Look Mr. Abhishek, you know, as I said these are quite complex products. I might be very confident but there may be still some improvement required because you know, assuming a fuse malfunctions, you would have heard one incident in Lebanon. One that 2,000 pound bomb or some 20,000 pound bomb, whatever the mother of all bomb or the US calls they dropped. But it did not blast. And it was just lying there. You know, a bomb which could have destroyed the bloody entire locality. It just did not blast, was lying there. Why? Because the fuse did not function and bomb did not blast.
So fuse is a very, very critical piece. It requires a very, very high degree of precision, particularly the proximity fuse, which is where we had some technical issue. So which is being rectified. You know, when something goes at a speed more than the speed of sound and it measures the distance, the radar inside measures the distance between ground and the bomb. You can imagine what kind of precision is required. So those things, you know, are going to be little more calibrated. So that is happening now. I am sure by April, when? April, May, when the next test phase of test takes place, it should be successful.
But if I. You see, if you ask comfort, I can only say that I am quite confident that it would happen. It has taken years for companies to reach to that level of precision. But we are doing it a much faster pace. But it needs some patience. You know, military products, you know, they need very high degree of precision. Particularly something like fuse, which is a small part of the bomb, but the most critical part of the bomb.
Unidentified Participant
I understand that the only thing was like what was worrying was like it took almost 18 months to get the next date from DRDO timelines. So if.
Mahendra Nahata
It was not the DRDO getting giving time, it was ammunition which was not available from the Mil Ammunition India Ltd.
Unidentified Participant
Yes, yes, yes, sorry on that.
Mahendra Nahata
In that, that ammunition is. Ammunition is available with us now. So Dido testing is not the problem. Problem was the ammunition which is now. It would not take that much time.
Unidentified Participant
Okay, can you just provide some kind of revenue visibility for 26, 27 in case of defense line of products and.
Mahendra Nahata
All defense line of products. I think we can should be something like 400 to 500 crores. Something like 4 to 500 crores.
Unidentified Participant
Next year. Okay.
Mahendra Nahata
Looking at defense, you must understand, you know, it takes a lot of time to build a defense capability. Approval of product itself is a big issue. But once you get in some product is approved, then you continue to sell it. Like BMP upgradation, for example. We are one of the five shortlisted parties. Trials will take place. The tender will happen and open. Assuming we win. Assuming I am not saying that we will win. Assuming then we Straight away get thousands of crores rupees order and consistently we are supplying for seven, eight years. So takes time but I am sure you know, larger tenders also will come in our way.
Unidentified Participant
Yeah, we look forward to that day when probably what is being envisaged is actually getting achieved.
Mahendra Nahata
Yeah, sure, yeah.
Unidentified Participant
And just one last squeeze. The active communication devices and the data centers and the huge cloud that is expected over the next few years because of the income tax holiday that is being provided by the government. What kind of opportunity that HFCL can get it from there?
Mahendra Nahata
Look, you know, basically when new data centers are getting created all whatever we are supplying to data centers would be in demand in India also. Right now we are exporting then there will be demand in India. Right now data centers are coming up in India. Some of the key players are putting up data centers but not still not to the level what is happening worldwide. You know, if you look at the United States for example, one company just announced that they are going to spend $150 billion in capex on data centers. Just just one company.
The scale is much different. But yes, with these concessions I expect that data centers will come up in India because data generation is huge in India because of our own population and usage of mobile phones and the data generations out of that. So there is a lot of data generation, lot of storage and those capacities are required in India. So when that happens, so the same product which we are exporting would be required in India also. That is the increase in market size for us and we can increase our capacity to serve our own country’s requirement.
Unidentified Participant
Yeah, thank you so much.
operator
Thank you. The next question is from the line of Pushkar Jain from Milli Capital. Please go ahead.
Pushkar Jain
Congratulations on that set of green set of numbers. I just wanted to know what is. The current average realization for bare optical fiber?
Mahendra Nahata
Bare optical fiber. Currently the price would be different for different type of fibers. But I will tell you, you know, as a general, from the point of view of comparison what we have been doing previously the price is, was about 250 rupees per km in December. Now February, you know this December number I am giving you because that was a price we purchased on average price in that particular quarter. Now if you see these prices has gone up this would be nearly about, you know, I would say 300 rupees plus.
Pushkar Jain
Okay, and do we also sell bare. Optical fiber or we just use it for our internal.
Mahendra Nahata
We don’t sell, we don’t have the capacity to sell. We are rather buying bare optical fiber from Other. Other players. .
Pushkar Jain
Right sir. And also in light, with so much capacity coming on stream next year. Can you give us some guidance on the numbers? How do you see it?
Mahendra Nahata
Look, you know, I would not give a guidance. I can only give my perception and expectation. Because guidance would be a wrong word to use but fiber optic cable, you know. But we have been looking at about 2,400 crore rupees of revenue from fiber optic cable business this current year. Next year I think it should be able to cross 3500 crores. This is not my guidance but my estimation on the basis of current demand, what we have in the country and export and also at the same point of time, the passive connectivity solution demand which I expect and also the shortage in the market, that is my best, you know, very. I would say more or less conservative expectation that we should be able to reach to 3,500 crores in fiber opticable business in the next financial year.
Pushkar Jain
Right. And on the margins you can.
operator
I’m sorry to interrupt you, sir. I would request you to kindly.
Mahendra Nahata
No, just. I will answer him.
operator
Okay.
Mahendra Nahata
Margins, you know, I think it should remain around 10% PBT margin should always be there.
Pushkar Jain
Okay, thanks. On EBITDA it will be like 18 then somewhat in this range only.
Mahendra Nahata
Yeah, EBITDA would be same range, you know, EBITDA is the same range. EBITDA would be in the same range.
Pushkar Jain
Right, right. Thanks. Thanks a lot, sir. That’s a lot.
operator
Thank you. The next question is from the line of Amar Ahir from Radon Capital. Please go ahead.
Unidentified Participant
Hello.
operator
Your voice is breaking actually.
Unidentified Participant
Is it?
operator
Please raise your hand. Yes, please proceed.
Unidentified Participant
Yeah, so what I want to ask is the optic fiber cable and optic fiber production capacities that you are adding by. Is that going to. And what will be the revenues will bring in? Sir?
Mahendra Nahata
Yeah. Mr. Your voice has broken again and again. I could not even understand your question.
Unidentified Participant
Is it okay now, sir?
Mahendra Nahata
It is right now. Okay, but please tell your question again.
Unidentified Participant
Yeah, sure. The optic fiber cable and the optic fiber production capacities that you’re going to expand, when will that commence and what revenues will that bring in?
Mahendra Nahata
No, I already said that you know that that production capacity enhancement is already in process. It is already happening. It is happening step by step because all machines are not delivered at the same time. So it is already in process. The cable capacity enhancement, what is the current stage we have planned would finish by May, June this year and the fiber capacity expansion would finish by December this year because their machines delivery is a longer time frame. So that would finish by November. December this year. So that is as far as capacity enhancement is concerned and as far as the revenue is concerned.
I just now said, you know, to the best of my expectation, depending on the current situation and best of my knowledge and expectation, we instead of 2400 crore which you have planned for the current year we should be able to reach 3400 to 3500 crores in the next financial year for the fiber optic cable.
Unidentified Participant
Okay. So thank you so much for answering my questions. All the best.
Mahendra Nahata
Thank you.
operator
Thank you. The next question is from the line of Arun Malhotra from Capro Capital. Please go ahead. Mr. Malhotra. I’m sorry to interrupt you, sir. Your voice is breaking drastically.
Arun Malhotra
Yeah, Am I audible now?
operator
No sir, you’re not audible. You’ll have to use your handset, sir.
Arun Malhotra
Yeah, I am using my handset. Am I audible now?
Mahendra Nahata
You are audible. Go ahead. Go ahead, Mr. Malhotra.
Arun Malhotra
Yeah, so what I was saying, when the outlook for the OFC business and the defense business is so good, why are we diluting the existing shareholders? We have done equity raise in 20, 21, 23 and now again in 25. So. And our debt to equity is still quite low. So why the equity raised at such low valuations?
Mahendra Nahata
You know, you need money for growth now question is if you need money for growth, more working capital then what else you can do? You have to raise money. No, you have to raise money. And also.
Arun Malhotra
You can always raise debt because debt is always cheaper.
Mahendra Nahata
No, it’s not necessarily that we will raise debt only we raise debt. We have raised some debt also. We have raised equity also. Both. It’s a combination of both.
Arun Malhotra
Okay. Because your stake has come down from 39 to 28 in the last three years when the prospects of the business are the best.
Mahendra Nahata
So that diluted our state to be. You know, we have invested our own money in the company.
Arun Malhotra
Okay, I was saying promoter Sherlock. Okay, I got your point. So second point was the percentage of the order book towards government is right now close to 70%. As per the presentation, my percentage of the current revenues is only 20% because 80% is private.
Mahendra Nahata
Yeah, that is right. You know, that is right. You must understand.
Arun Malhotra
So that means the mix in the future will change.
Mahendra Nahata
No, no, no, no, no. You know, government in. That’s what I. You must understand a good question and good observation. Look, you know what happens. The government orders have come in a bunch. Bharatnet for example, which is a three year order but is a multiple thousand crore order. So when you see the order book it looks large, but execution is in three to four years. So execution takes time. So percentage of revenue goes down. Whereas the private sector orders come in smaller numbers. 200 crores, 300 crores, 100 crores, 50 crores. And that execution is also faster.
So private sector order booking will remain always lower than the government sector. But revenue would always be higher from the private sector than the government sector. And again another point you should see the ONM revenue is also in the part of the government government order. So ONM revenue bunched with the, you know, the order book of the current equipment and all that becomes even higher. So you know the current order book for the ONM is itself is about 3000 crores. So because of ONM it looks higher.
Arun Malhotra
Sure, sir, sure. Thank you. That’s it sir.
Mahendra Nahata
Thank you.
operator
Thank you. Before we take the next question.
Mahendra Nahata
Hello.
operator
I’m sorry. Before we take the next question, we would request all the participants to kindly limit their questions to only one per participant. Should you have a follow up question, please rejoin the queue. The next question is from the line of Saket Kapoor from Kapoor company. Please go ahead.
Saket Kapoor
Yeah. Exhaustive, detailed, very detailed one. So Meraiki observation. When we look at our revenues on a consolidated basis, the revenue is at 1211 crore. And when we look down at the profitability, the profit from the telecom product is at 202 crore. With revenue of telecom product at 722 crore. Telecom product revenue, the CAR starts to do or profitability. The Kari extra strength is Karodki bees. Karod say revenue Bhartah or profit increase.
Mahendra Nahata
Standalone basis is that it has multiple businesses including optic fiber cable, telecom product, turnkey projects and all that. When we come to the consolidation, it is mainly HTL Limited and HFC Link which is 100% subsidiary in US. So these two companies are exclusively into optic fiber cable business where the margins are also higher. So what happens? Eventually HFCL and HTL manufactures product here cable here in India and exports to HFCA Link. In turn, HFCA Link sells materials to various respective customers. So this last quarter December ended a lot of inventories got stuck there. So this revenue has not increased substantially but the profitability is increased because of the revenue mix. So HDL and HFC link, they are 100% optic fiber cable. So that is how it is in console basis. Profitability looks much better than the standalone.
Saket Kapoor
Okay, so going ahead the sales will get reflected and then at that time the probability will not be there. So we have booked the profitability for this quarter.
Mahendra Nahata
Will be there. Profitability is booked only when the final sale takes place to the end customer.
Saket Kapoor
Okay. Better would be sir, I’ll take it offline.
Mahendra Nahata
You know because you know when we sell it to our own company we don’t book the revenue or profit. It is booked when it goes to the ultimate customer. So with this unfortunate incidence of tariff and all that this all things got stuck and you know that’s how you see this anomaly.
Saket Kapoor
Okay sir, Can you give me the net debt number and the cost of fund currently or Amari rating cup due as a revision.
V R Jain
But we will try post this December quarter result we can approach again to the rating agency.
Saket Kapoor
And net debt number.
V R Jain
Including term loan, working capital facilities, some bill discounting and all that. Some payment to these MSME vendors and all that all taken together it is 15.
Saket Kapoor
That the the level of work that we are doing currently and the type of businesses we are. We should also look at at people like Crystal or ICRA or India rating as our consultant for evaluating our credit rationale. Also that’s a humble suggestion from my side if that could be looked ahead in the near future.
V R Jain
Yeah. We can consider that we are associated with care for a very very long time. But we can explore all those possibilities. Yeah.
Saket Kapoor
Okay sir. Thank you sir. And we hope. Yeah hope for good performance going ahead.
operator
Thank you ladies and gentlemen. We’ll take the last question for today which is from the line of Parth Mehta and individual investor. Please go ahead.
Unidentified Participant
Sir. My only question was could you please throw some light on the guidance for 5G businesses for the next year and on the revenue front and defense you have guided. But the 5G products side, the revenue guidance for the next year.
Mahendra Nahata
You know some there are products which are used for 4G, 5G 6G everything. So routers for example you know that’s used for everything. The UBR used for all 4G 5G everywhere. So I would not be saying 5G products but telecom products. I would say so I would expect something like 500 crores.
Unidentified Participant
Okay. Okay. And so I understood that you said that OM is also going contributing and that is the reason why we have made losses that because we are spending money at the moment. But any guidance for such a business going forward as well.
Mahendra Nahata
You know as I said army alone we should be getting 170 crores a year. They are BNG, OTN, UBR. All this in 3 years time visit 2 to 3 years time. 4 to 500 crore would be our revenue from O and M.
Unidentified Participant
Okay. And X, O and M normal service business. We are not. We Are not continuing with that?
Mahendra Nahata
No, we are not doing any other normal service business except doing EPC construction and all that. But no other service business we are doing.
Unidentified Participant
EPC business guidance would be. Would you be able to give .
Mahendra Nahata
I would say roughly about thousand crores.
Unidentified Participant
Thousand crores a year.
Mahendra Nahata
Next year?
Unidentified Participant
Yeah. So that is much lesser than what we have been. We have been doing in the past, is it?
Mahendra Nahata
This year we would be doing 1500 crores. We are intentionally not doing much of EPC because that’s not the area. We are much. We are more interested in defense business, fiber optic cable business, telecom equipment business, epcs. Not our priority business. So I would have got more contracts for EPC even if I want today I can get another thousand crore contract for epc. But I am not taking that.
Unidentified Participant
Okay, sir, got your point. Thank you so much sir. All the best.
Mahendra Nahata
Thank you.
operator
Thank you. As that was the last question for the day due to time constraints investors may reach out to the investor relations team for any further clarification. Ladies and gentlemen, I would now like to hand the conference over to Mr. Nata for closing comments. Thank you. And over to you sir.
Mahendra Nahata
Thank you very much all my friends shareholders for this earning call of quarter three. And I am quite sure based on the current order book and current demand scenario of the products which we manufacture and the turnkey contracts we are in process of executing that. We will continue to maintain the momentum which we have shown in Q3 and the same momentum should continue to happen in the coming quarters also because the demand of our key products like fiber, fiber optic cable and also some of the telecom equipment like routers is very, very good. You know, it’s a very good demand.
And we have got confirmed orders in hand from large players and more orders are expected in near future and mid term and long term future also. So we will maintain the momentum what we have shown in the third quarter and expect that company would be able to show even further improved performances in the coming quarters. Thank you very much gentlemen. Thank you for being with us today.
operator
Thank you members of the management, on behalf of ICICI Securities Limited that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.