Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
HFCL Limited (NSE: HFCL) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Unidentified Speaker
Unidentified Speaker
Mahendra Nahata — Managing Director
V R Jain — Chief Financial Officer
Analysts:
Abhishek Jain — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Balasubramanian A — Analyst
Unidentified Participant
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Smith Gala — Analyst
Unidentified Participant
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Presentation:
Operator
Ladies and gentlemen, good day and welcome to the HFCL Limited Q4FY26 earning conference call hosted by Aryan Capital Market Limited as a reminder, all participant lines will listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr.
Abhishek Jain from Aryan Capital Markets Ltd. Thank you. And over to you sir.
Unidentified Speaker
From the man
Unidentified Speaker
Abhishek. You are not audible, Vishak Operator.
Operator
Just a moment sir.
Unidentified Speaker
Yeah. Hello.
Operator
Yes, you’re audible?
Unidentified Speaker
Yeah.
Unidentified Speaker
From
Abhishek Jain — Analyst
The management side we have Mr. Mahendra, Promoter and Managing Director, Mr. V.R. Jain, CFO Mr. Manoj Bhat, Company Secretary and Mr. Amit Agrawal, Head investor relationship. Before we begin, I would like also read the disclaimer statement. Statements management made by during this call may be forward looking in nature based on management current beliefs and expectations. This must be used in relation to the risk of HFCL business faces that could cause its future results, performance or achievements 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 decision. So without making further delay, I’ll hand over the call to the management for the opening remarks. Over to you sir.
Mahendra Nahata — Managing Director
Thank you and good evening everyone on the call. I extend a warm welcome to all of you on HFCS earning call for the fourth quarter and financial year ended 31st March 2026. 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. This quarter and financial year mark a defining milestone for HFCL as we delivered a never before quarterly as well as annual performance reflecting the strength of our strategy, improved business mix and consistent execution across our core segments.
I am pleased to share that we have successfully achieved the commitment of 20% revenue growth along with expansion in margins, underscoring the structural transformation we have undertaken over the past few years. The performance is broad based supported by strong demand across optical fiber, cable, telecom, defense, EPC and exports. As we move into the new financial year backed by a very robust all time high order book of rupees 21,200 crores, favorable industry tailwinds and our continued focus on high value products and global markets, we remain confident of sustaining this growth momentum and delivering a similar trajectory in the coming periods.
I would also like to highlight that HFCL has remained largely insulated from current disruptions due to geopolitical situation. Our supply chain has continued to operate seamlessly without any material impact on production or dispatches. At the same time, we have taken strategic step towards further strengthening our manufacturing resilience with backward integration by establishment of preformed manufacturing facility. The project involves an estimated capital outlay of around 580crores which will be funded through a balanced mix of internal accruals, debt and equity.
The facility will be state of art based on latest technologies. The initiative is not merely about backward integration, it is about strengthening HFCL’s structural competitiveness. Freeform will act as a key margin expansion lever and a long term competitive advantage for hfcl. The global optical fiber market is undergoing a structural transformation driven by hyperscale data centers, artificial intelligence workloads and cloud infrastructure expansion. This is adding an estimated 100 to 150 million fiber kilometers of incremental demand globally over and above traditional telecom sector requirements.
More importantly, this demand is concentrated in high fiber count, low latency, high performance solutions where supply remains constrained. As a result, we are witnessing a significant improvement in realizations for such type of cables. Our average realizations have improved significantly and we expect this to be progressively reflected in our margins over the coming quarters. We remain confident that this favorable pricing environment will sustain over the medium to long term. Currently, the demand momentum is being led by hyperscalers in the United States which we expect to be followed by Europe and Asia including India indicating a multi year growth cycle ahead.
HFCL has strategically positioned itself to capture this opportunity through its advanced product portfolio including high fiber count cables up to 6912 fibers. I am proud to inform you that these high technology cables have been designed and developed by our in house R and D team. In addition, we are seeing strong traction in our data center interconnect solutions including pre connectorized systems which are becoming increasingly critical for high density AI infrastructure deployments. We have decided to increase on a multifold basis our manufacturing capacities for Data Center Interconnect solutions in our subsidiary HTL limited Data Center Interconnect solutions are expected to contribute significantly to our performance going forward.
It is expected that Data center interconnected solution will contribute about rupees 400 crore additional revenue in financial year 2627 and about rupees 800 crores in financial year 2728. During the period under consideration, we secured a landmark long term global optical fiber stable supply contract valued at approximately 1.1 billion equivalent to Rupees 10,159 crore providing strong multi year revenue visibility. This is probably the highest ever single contract secured by any Indian telecom company.
Other multiple export and domestic orders being continuously received by us reflect sustained optical fiber cable demand traction across markets. Friends, the company’s order book stands at all time high at rupees 21,200 crores including export orders worth 12,250 crores constituting 58% of total order book. This sound order book provides strong sustainability and growth momentum in company’s revenue and profitability. Exports continue to be a key pillar of our strategy. We are witnessing a steady increase in the share of OFC export orders and revenues driven by growing acceptance of our products in global markets.
Our strategy is clearly focused on diversifying geographies, reducing dependence on any single market or customer and building a resilient and globally competitive business model. Our focused export strategy has delivered strong results during the year. Today more than 70% of our cable production is being exported. Consequently, our export revenues have increased from 41 point have increased to 41.36% in financial year 26 compared to 12.23% in financial year 25. Underscoring the growing contribution of global markets to our overall business over the last few years HFCL has been steadily building strong capabilities in defence sectors.
We have already indigenously developed and commercialized several land based defense products including thermal weapon sights, high capacity radio relay systems and multiple variants of surveillance radars. In addition, a few more defense products such as multimode held grenade, compact transfer agent communication systems are currently in pipeline. Building on this foundation and in line with our long term growth strategy, Board of Directors at its meeting held on March 25, 2026 approved a major strategic initiative to expand and further strengthen our defence business while also enabling HFCL to meaningfully participate in opportunities emerging in the defence aerospace segment.
The core objective of this proposed transaction is to create a focused and scalable and a future ready defense and aerospace platform by consolidating complementary defense capabilities under our subsidiary HFCL Advanced Systems Private Limited. Strategically, this allows HFCL to operate across both land defense and aerospace defense domains creating a comprehensive and integrated portfolio. The aerospace business being acquired operates in a high entry barrier segment characterized by stringent qualification requirements, high precision, long approval cycles and a limited global supplier ecosystem.
Importantly, this business comes with established capability based certifications, long standing customer relationships and a confirmed export oriented order book of approximately 1930 crore rupees providing immediate revenue visibility. We believe that the proposed structure will sharpen execution focus, improve capital efficiency and drive sustainable growth from defence vertical. The definitive agreement for this proposed transaction are expected to be executed on or before May 31, 2026 and a closing under such transactional documents is expected to be completed within the current calendar year.
We are also progressing with the expansion of our defense manufacturing capabilities including the establishment of an ammunition focused facility in Andhra Pradesh. This facility is proposed to support a range of ammunition products such as electronic fuses, multimode hand grenades and 155mm artillery shells. A land of 1000 acres has already been allotted to us by Andhra Faresh Government for setting up this facility. Once operational, it is expected to make a significant contribution to company’s overall performance.
Besides, we have also established capabilities in critical areas such as wire harnesses for different sectors and we have been recognized by Hindustan Aeronautics Limited with the Best Supplier award. In addition, our technology collaborations including technology transfers from DRDO enable us to manufacture several products domestically that were earlier imported. Our defense order book currently stands at approximately rupees 300 crores comprising orders across thermal weapon sites, radar systems, technical communication cables and wire harnesses for critical platforms.
With the addition of aerospace business being acquired, this order book expands to approximately rupees 222230 crores including a strong export oriented order book of around 1,930 crores. We see defense sector as our strong pillar of growth in coming years. Products for land systems as well as aerospace segments coupled with strong export base are expected to result in significant growth in our revenue in coming years. In our telecom and networking product segments, we continue to invest in innovation and product development aligned with emerging opportunities in 5G, private networks and enterprise connectivity.
This segment is expected to scale up progressively and contribute meaningfully to our overall growth. We are pleased to share that we are firmly on track to expand our optical fiber and optical fiber cable manufacturing capacities. Our current optical fiber capacity of 28 million fiber kilometer is expected to increase to 33.9 million fiber kilometer by December 2026. In parallel. Our optical fiber capital capacity which has optical fiber cable capacity which has been scaling up in phases currently stands at 34 million fiber kilometer, is expected to reach to 39 million fiber kilometer by July 2026 and to reach 42.36 million fiber kilometers by December 2026.
In our EPC business including projects such as BharatNet, execution continues to progress in a disciplined manner. As execution accelerates, we expect this segment to contribute more meaningfully while maintaining a sharp focus on working capital efficiency and capital discipline. Friends, we had articulated a clear set of strategic priorities to expand our global export footprint, rebalance our customer mix towards private sector clients and increase our share of product led revenues over EPC with margin expansion.
I’m pleased to share that we have delivered decisively on each of these fronts. Our export revenues increased from 4.54% in FY21 to 41.36% in FY26 reflecting a meaningful expansion of our global footprint. At the same time, our government order book exposure reduced from 51% in FY21 to 37% in FY26 with the corresponding increase in private sector participation improving the overall composition and resilience of our business. Further, the share of product revenues in our mix rose from 27% in FY21 to 62% in FY26 underscoring our successful transition towards a more margin accretive product led model.
Together these outcomes mark a significant transformation in our business model positioning us on a stronger and more sustainable and growth oriented. We are also witnessing gradual improvement in working capital cycles supported by better execution discipline and more favorable business mix. We also remain committed to our ESG priorities. During the period, HFC received ESG ratings from multiple independent agencies and published its first sustainability report reinforcing our commitment to responsible and sustainable growth.
Importantly, during the period the Board has approved a preferential issuance of warrants to the Promoters aggregating to approximately Rs. 555 crores subject to necessary approvals. This reflects the Promoter’s continued confidence in the Company’s long term growth strategy and their commitment to supporting the next phase of extension including preform integration, defense, scaling and augment long term working capital resources. Let me now quickly take you through the consolidated financial performance for the financial year 2026 and quarter four of financial year 2026.
For the twelve month ended 31st March 2026, the company reported consolidated revenue 4,949.27 crore as against 4,064.52 crores in financial aid to 2025. EBITDA of rupees 826.75 crores as against 506.75 crores in FY25 profit before tax of rupees 427.68 crores as against 216.59 crores in FY25 and profit after tax of 329.44 crores as against rupees 173.26 crores in FY2025. Revenue for quarter four financial year 26 stood at 1,824.12 crores as compared to 1,210.79 crore in quarter three of FY26 and rupees 800.72 crore in quarter four of FY25.
EBITDA for quarter four 26 stood at 336.93 crore as compared to 243.52 crore in quarter 3 of FY26 and negative 22.33 crore in quarter four FY25. EBITDA margin in Q4 FY26 stood at 18.47% as compared to 21.1 in quarter three of FY26 and negative 2.79 for Q4 FY25. Profit after tax for Q4 FY26 stood at 184.45 crores as compared to 100 and 102.37 crores in quarter three FY26 and negative 83 crores in quarter four of FY25. FED margin of Q4 of FY26 stood at 10.11, 10.11% as compared to 8.45% in Q3 of FY26 and negative 10.4 in Q4 FY25.
Segment revenue from telecom products stood at 66% of total revenue in Q4 FY26 as compared to 57% in Q3 of FY 26 and 74% in Q4 of FY20. As we look ahead, we believe that HFC is entering a structurally stronger and very predictable growth phase. We are not only experiencing a substantial expansion in our order book but also a meaningful uplift in its business composition reflected in a high share of exports, long term contracts and a greater contribution from high margin products. At the same time, our strategic initiatives including backward integration into preformation, expansion in defense sector, increasing global footprint and focus on product led growth are creating a Powerful foundation for sustained margin expansion and return improvement.
SFCL today is transitioning into a fundamentally stronger business enterprise. One that is more global, more technology driven, more diversified and structurally more profitable. Thank you friends for your taking time out to attend this meeting. We are now opening the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use hat send while asking a question. Ladies and gentlemen will wait for a moment while a question queue assemble. The first question is from the line of Aman Seifi from Stalin Asset. Please go ahead.
Unidentified Participant
Hi sir, I hope I’m audible.
Mahendra Nahata
Yeah, you are Audubon.
Unidentified Participant
Thank you so much for the opportunity and congress on a great set of numbers that I have two questions. Number one, if I look at the current trajectory, we are already having a $1.1 billion of orders from a hyperscaler and along with the defense execution of 600 crores lineup for next year. When I triangulate this number from the existing base of 5000 crores, it appears that our overall revenue could scale up to 8,000 crores next year. With our segment margins already at 30% is it fair to assume that our profit next year can be north of 800900 crores even after factoring 100 crore annual loss from project business?
Mahendra Nahata
I would not like to give such a guidance at this point of time. But you know I can definitely say that over and above the revenue we have achieved in last financial year, we should definitely be able to scale it up by 20 to 25% at least. And well, you know, with the increase in capacity of fiber fiber optic cable defense products, there is good possibility that we would have a good increase in the numbers. But Yes, I think 20 to 25% is not something which we cannot reach to in best of my expectation rest.
I would not like to give guidance at this moment of time.
Unidentified Participant
Yeah, yeah. But sir, our telecom product PBT margin should continue even inch up higher with the defense execution and improved margin mix.
Mahendra Nahata
Well, you know what we believe that 3 to 4% increase in margin, you know, on a blended basis. On a blended basis, on a company, on an overall basis, it’s Quite, quite expected 3 to 4% increase.
Unidentified Participant
Got it, got it sir. And myself second question would be we have constituted a strategic restructuring committee which we believe is a very positive step. So are we demerging our project business and if so what is the indicative timeline for that?
Mahendra Nahata
Look, I mean, you know, we have constituted the committee. Committee will be working and making decision what to merge, what to demerge. But either, you know, we have done so to, you know, really every business has a completely significantly different capabilities and you know, ability of execution required different. Requires a different capability, different set of people. EPC needs a different set of people and fiber business needs a different set of people. And in some cases we receive offer from strategic partners also to partner with us.
Now they cannot, any strategic partner cannot come into such a mix of products where defense, EPC and cable and telecom all are mixed up. So it is a good idea to consider that how this can be rationalized. And with that objective we have considered this committee as and when any decision is taken to merge demerge any business, we will definitely come back to you
Unidentified Participant
Got it? Got it. And just one last question if I may is that $1.1 billion
Unidentified Participant
Of orders have started to execute from this quarter itself.
Mahendra Nahata
Yeah. No, this is going to start from Q2. No, no, sorry, end of Q1. I’m sorry, end of Q1.
Unidentified Participant
End of Q1, sir. Yeah, got it. Got it, sir. Thank you so much and all the best.
Mahendra Nahata
Thank you. Thank you.
Operator
Thank you. A reminder to all participants, please restrict yourself to two questions. The next question is from the line of Deepak Podar from Safer Capital. Please go ahead.
Unidentified Participant
Yeah, Am I audible,
Operator
Sir?
Mahendra Nahata
Yeah, you are audible.
Unidentified Participant
Yeah, thank you very much. So just a clarification. First up. When you said 3 to 4% increase in EBITDA margin that you’re talking about FY27, right?
Mahendra Nahata
Yeah, yeah, you’re right. This is expected. You know, I’m not committing to anything. But as for the current order book prices, raw material prices, I expect this. But tomorrow in this geopolitical world, something else happens, you know, you don’t know which morning, evening, who says what? We do not know. But that is my current expectation based on current raw material prices and current order book where the customer prices are known.
Unidentified Participant
Understood. And in terms of defense and Data Center, I think this year you are expecting 5, 5 to 600 crores revenue from defense and data center around 400 crores. So can you throw some more light on the margin profile of this segment?
Mahendra Nahata
Look, you know this data center business are two types. One is cable which is not included in this 400 crores which I mentioned, that is completely separate. Cable is different. This is just the interconnect solutions. 400 crores and it may even be higher than 400 crores. But let’s say minimum 400. 400 crores. In reality it may be much higher. But I am taking Conservative number of 400 to 500 crores margin profile. Again you know as you. I said blended margin profile is 20% wherein this could be little bit higher than others.
Because these are going on in small batches and with a more value added this could be little bit higher. But yes, blended margin would instead of 16, 17% we have. It would increase by 3 to 4% as expected because of these kind of products coming in. In defense, 600 crore of rupees. Again the margin, you know, because these are very high value, high precision products and mostly coming out of our proposed execution. Margin could be a little bit higher. Little bit higher. A couple of percentage higher than current rate of margins or expected rate of margins.
It can be couple of percentage higher.
Unidentified Participant
20 to 25% margin defense.
Mahendra Nahata
Something like that. Something like that.
Unidentified Participant
Okay. Okay, understood. And on your backward integration we are. We are spending around 580 crores. Right. So. So. So what sort of advantage will get in terms of. In terms of your increase in margins or what sort of the backward integration that we are doing so by when it is coming on stream as well? Yeah,
Mahendra Nahata
Look, you know our current requirement of preform is 1000 tons per year.
Unidentified Participant
Now
Mahendra Nahata
We are setting up this facility only for 300 tons. Now this is just to have some sort of a control on preform availability. If our availability goes down then our overall production will go down. Fiber production, cable production. So we want some additional control that yes, we have adequate availability of our raw material, the you know, preform. That is why this facility being set up currently 300. But we have a possibility we might scale up to 500 stage 2. Not now after 300 is successful, we might take it up to 500 then.
Second point is that of course it is going to be cheaper if you do a make versus buy analysis. We did a lot, we did a lot make make versus buy analysis. And it reduces the cost roughly between 15 to 20% of reform.
Unidentified Participant
15 to 20%. And by when it is coming.
Mahendra Nahata
Well, you know it will take at least two years.
Unidentified Participant
At least two years. Okay. Okay. And just one last thing. If I can squeeze this 21,000 crores order book that we have. What would be the average execution timeline?
Mahendra Nahata
Look, you know these are divided in two parts. Order book is divided in two parts. Which is one is that products which are to be delivered and second is you know, AMC contracts. So the product which are to be delivered is about 18,000 crores. And AMC contracts are roughly about 3,500 crores.
Unidentified Participant
Correct.
Mahendra Nahata
18,000 crores. It’s to be delivered in to, you know, depending upon contract to contract within this year to about five years, you know, depending upon which, you know. And this 3500 crore ONM contract are 6 to 7 year time period. Now 18,000 crore of orders is in hand. We have, but we keep on receiving regular orders, you know. You know, and next five years, I don’t know how many thousands of crores of orders will be further received. So that’s why I said, you know, we have very sustainable growth with this kind of an order book.
More orders in pipeline. When I talk right now, thousands of crores of more orders are in pipeline. Some of them we are in a contrary whether we should accept or not because of the capacity constraint. So there is a very sustainable order book we have at this point of time.
Unidentified Participant
Understood that would be from my side and would like to wish you all the very best. That’s very happy.
Mahendra Nahata
Thank you very much.
Unidentified Participant
Thank you.
Operator
Thank you. The next question is from the line of Raheel Dasani from mapl. Please go ahead.
Unidentified Participant
Yeah. Good evening, sir. First of all, congrats on a strong set of numbers. Starting with the capacity. Part of our total IBR capacity post expansion, which I believe is 19 million fkm. How much turnover can we achieve from this particular 19 million and optimum utilization.
Mahendra Nahata
Look, Mr. Dasanya, it’s very difficult for me to break down the capacity of IBR and all that. And that is an information, you know, which is a bit, you know, commercially confidential to share. But one thing I can say, 100% of that capacity will be achieved. Whatever that capacity is, we are in fact expanding that capacity. Two new machines are already under installation. Few more new machines you have already ordered which would be installed within this calendar year. Capacity will further expand and you know, it is hundred percent utilized.
Unidentified Participant
Got it. And can we also use the facility or machines that we have for our telecom, optical fiber and convert that to ibr? Does that work or that’s not possible.
Mahendra Nahata
It can be done both ways. Some modification and machines are required from telecom ivr, which is telecom. There’s no IBR in telecom. This is a flat driven, you know, telecom can also. The idea they don’t use normally, but they use IBR is intermittently bonded. Even flat driven is a different kind of a ribbon. So a driven machine can be converted into IVR with some modification and vice versa also. You can do it, but why would you do it vice versa because IBR machines are much here you would do from flat to ibr, not IBR to flat.
Unidentified Participant
Got it. Yeah. So coming on to our EPC business.
Operator
Mr. Yeah.
Unidentified Participant
Can I just ask my second question?
Operator
Yeah,
Mahendra Nahata
Go ahead.
Unidentified Participant
Yeah. Just on our EPC business. Our EPC business has turned bit loss making in the last few quarters. So if you can share, why has that happened suddenly and how will that change? And the second part of this question is even with our EPC business dropping, our unbilled revenues have been increasing a lot year on year from 300 crores to 600 and now maybe even higher. So why is that happening? Especially since all our OFC customers are now primarily global MNCs and our EPC business has been dropping.
Mahendra Nahata
I think mixing up two things. Global OFC customers and EPC are completely different. EPC business loss was majorly due to this army’s network which we constructed. And it was undergoing warranty period where we were incurring cost. But nothing was received from the customer. Now AMC contract is shortly to be signed with Army. Once we start AMC that would be nullified totally. Moreover now we have started executing BharatNet kind of EPC proceed where there is profit. As the billing starts, profitability will keep on coming.
For your second question of unbilled revenue, my CFO would answer that.
V R Jain
So see it is not increasing totally in EPC contract. Part of it, I mean significant part of it is because of this OFC supplies and because of some, some compliance is pending. It cannot be invoiced. We cannot, we could not raise the tax invoice at the year end. So those invoices are getting raised in April, May and that will convert into. It is significant part will get converted into formal revenue and will set off against the unbilled revenue which we have booked in last financial year
Abhishek Jain
In
V R Jain
Iepc. Also significant part will get converted into taxable, I mean revenue during course of this financial year. So you will see the significant change at the end of this current financial year.
Unidentified Participant
Got it. So next year ECC business should be profitable for us.
Mahendra Nahata
Yeah, yeah. Because maybe, maybe means
V R Jain
Second, third, fourth quarter from this financial year. Second year,
Mahendra Nahata
Second quarter from it say yeah, you know this because this, you expect this AMC contract with army would be signed and the sizable expense is coming in that contract because of warranty which are known nothing new. So that will get converted into AMC and once it is AMC then you will find it, you know about 170 crores or so AMC being every year. So that would nullify this Loss and with the EPC contracts of Bharatnet or being profitable, it would current year should be profitable.
Unidentified Participant
Got it. I have a few more, but I’ll get back in the queue. Thank you.
Operator
Thank you. The next question is from the line of Saurav Jain from Sunidity. Please go ahead. Yes,
Unidentified Participant
Congratulations sir, for the great set of numbers. I have two questions. First, since you mentioned to the previous participant that capacities are kind of fungible between Telco and Ibrahim. So is there any possibility in future for another such mega deal following the new capacities that are going to come up by the end of this calendar year?
Mahendra Nahata
Your voice is echoing too much. You know, I really can’t understand what you said. You know, we have to probably take the speaker a little bit away from you and then speak. Sorry
Unidentified Participant
Sir, since you mentioned that capacities are kind of fungible between Telco and ibr. So is there any possible possibility in future for another such mega deal? Especially we have new capacities, you know, coming up by the end of this year.
Mahendra Nahata
Look, you know, fungible in, you know, not in two ways. Fungible technically yes, but IBR machines are very costly machines. You would not like them to be used for telecom ribbon kind of an application. Those machines are much less costlier machines. So you would like to have those machines separate than the IBR cable machines so you can convert. It’s not fungible. You have to have additional equipment put into that telecom kind of a ribbon equipment machine that will convert into IBR machine. Now downscaling and IBR machine, the flat ribbon is not something which you would like to do that is converting a bigger machine into a smaller machine, you know, that is not economically viable.
So one would not do that. So we are expanding the capacity of ivr. Well, you know, as far as such mega deal is possible or not, well, you know, right now we don’t even have the capacity to really go for such a mega deal at this point of time. Because you know, we can do that, we can do that, you know, but we don’t want to lose the opportunity of taking spot orders also because spot orders are sometimes more profitable. So we do not want to pre sell 100% of our capacity. We want to keep some capacity in hand to be able to give it to our regular customers who buy regularly from us, maybe in small quantities and also to take advantage of spot market, you know, where you get the higher profitability.
So why would I book the total capacity of mine when there is a huge demand and there are opportunities of spot pricing, spot deals which are more Profitable. We have done a couple of deal like this in recent past.
Unidentified Participant
Absolutely sir, that brings me to my second question since you mentioned that of course you would like to you know keep capacities for spot orders also. So sir, January to March we kept on hearing sharp in jumps in fiber prices both standard fiber and of course this high frequency, high fiber cables also. So just wanted to understand two things here. How is the momentum right now? Is there any cooling off happened we saw recently and how it is going to, you know, how do you expect prices to play out in probably next 2, 3/4.
And secondly we saw, we heard that 23, $24 was the price prevailing prices for high fiber high frequency cables. But there were some articles that that were talking about prices going to $30 also in April to June quarter. Internationally
Mahendra Nahata
I tell you the prices have gone up for certain type of applications, you know where they are ready to pay any price which is mostly for application in drones, military drones which is happening in uk, sorry ussr, Ukraine and all those areas. So that is additional demand of roughly about 50 to 100 million kilometers has come in. But we are not supplying to those kind of, you know, war kind of requirement. We are not at all supplying, not even meter we have supplied. But that is one area where even our suppliers of preform don’t want us to go in fast.
So we are not supplying in that area. So I hope that demand is there, it is going to continue but may not increase further. And there is a, you know, with the bulk consumer side, data centers, telecom operators, there is a level to which it is economical for them to keep on buying fiber optic cable. So I think right now in my personal opinion the prices have reached to their almost the final level. There may be few percentage increase may be there but there will not be any further increase in the prices in my personal opinion.
That’s my personal opinion but you know opinions may go wrong. I’ve been thinking of this since last one month but it keeps on going up. So but really in my personal opinion it will not go in a, in a major way.
Unidentified Participant
So sir, in your PPT you have mentioned that we are expecting kind of 25% improvement in the realization for FY27. So that would be primarily because of the product mix, right?
Mahendra Nahata
Because of the product mix and because of the high density cable and you know, because this price rise has started from last one or two months. So when you take it in the full year of this kind of prices and naturally it will go up on a year to year long basis,
Unidentified Participant
Right sir, one Last question. What would be the keeping? Just a small, a small question. Capex number for FY27 and FY28. That’s it. That’s all from my side.
Mahendra Nahata
Yeah. For you know the total capex for FY26 would be roughly about the current FI27 could be roughly about 600 crores. Part of which has already been incurred in fact which includes for fiber, for optical fiber cable. Defense a part of the preform business all put together would be roughly about 600 crores.
Unidentified Participant
And sir, for FY28
Mahendra Nahata
To 350 crores.
Unidentified Participant
Okay, that’s all sir. Thank you. Wish you all the best.
Mahendra Nahata
Thank you.
Operator
Thank you. The next question is from the line of Bala Super Ammonium from Arian Capital. Please go ahead.
Balasubramanian A
Good evening sir. Thank you so much for the opportunity. Congratulations for good setup numbers. So what are, what. What is the strategic reason behind deficits acquisitions and how do you look at defense business next three to five years? And you also strategic restructuring company for evaluating business realignment. So what is, what is your thought process on that?
Mahendra Nahata
Look rational for acquisition of defense business? Are very simple. This company is in aerostructure business and we did not have aerospace aerostructure business. So this really expanded our defense business in another area from land systems to aerospace. Now aerospace is much more difficult business to enter in from a, you know, greenfield situation. Because the approvals for aerostructure is very critical. It takes years, five to seven years to get any particular component approved for aircrafts, you know, because you know how critical they are for aircraft safety and all those kind of things.
So this company already had approval certifications and export order book of almost 2000 crores. Export order book from large international companies, you know. So it was very much within our realm of our ability requirement to acquire this business. I think we are fortunate to get into in this aerospace business through an existing acquisition. If we had tried ourselves, it would not have been possible for next five to seven years with an order book and with a certificate certified products and with possibility to get more orders.
Balasubramanian A
Yes sir. What is the update on electric fuses and what are that
Mahendra Nahata
We tested in Balasore? Some, you know, shortcomings or you know, requirements upgrade has been noticed which we have to upgrade. That upgrade is going on and a couple of months we will give it for testing once again with all those upgrades done.
Balasubramanian A
Okay, sir, thank you.
Operator
Thank you. The next question is from the line of Tanmay from 360. Please go ahead.
Unidentified Participant
Hi, can you hear me?
Operator
Yes.
Unidentified Participant
Congratulations on a great set of numbers. I just wanted.
Mahendra Nahata
We can’t hear.
Unidentified Participant
Can you hear me now?
Mahendra Nahata
Yes.
Unidentified Participant
Can you comment on the capacity utilization of the optical fibers, the preform prices and the end product optical fiber prices?
Mahendra Nahata
Look, you know, as far as capacitation of fiber optic optical fiber is concerned, it is 100%. We are trying, you know, we are trying to increase the production by doing various optimal, you know, innovation, innovative things that if it can increase by even 5%, 10% that would also mean very additional profitability. But that is not always possible. But it is hundred percent utilization. We are trying to make it 110%, you know, so that is one. As far as the pre firm prices are concerned, I don’t have any idea what kind of pre preform prices are existing today.
We are not really buying from open market. We have already contracted prices and I don’t think pre firm are being sold in open market in that quantity. Because all preform producers are producing their own fibers. I do not have much idea. But probably for D fiber preform price could be today 140, $150 per kilogram. This is my rough estimate because there is no such prices. I have heard in recent past as far as the fiber cable price is going very difficult. You know, cables are a different construction, different fiber kind, you know, different density of fiber.
So I really can’t put a finger on how much is a per fiber price. Because earlier when I used to say price per fiber kilometer, it’s single type of cable was the loose tube cable was there armored or unarmored. Now there are hundred different kind of fiber optic cables. You can’t really say that this is the price of per kilometer of fiber. It could be thousand rupees, it could be 2,000 rupees. You know, it’s very difficult to put your finger in that way. And put it on average would be very wrong.
Unidentified Participant
Okay, and in defense for FY27, can you tell us what percent of the revenue will come from will be highest
Mahendra Nahata
In which is you are talking the current financial year?
Unidentified Participant
Yeah, 527.
Mahendra Nahata
FY27 I think you know about 10%, 10 to 12%.
Unidentified Participant
And which product specifically
Mahendra Nahata
It would be largely aerospace and the lens systems.
Unidentified Participant
Okay, got it. And do we see margin increases coming from the first quarter itself or will it be towards the third and fourth quarter?
Mahendra Nahata
I think the start would start. It would start from the first quarter itself. That is what we expect. Again, no guidance please. Expectation this expectation that it should start from the this quarter itself. Because we know the sale prices mostly of the customers and we know the raw material prices also. Now if something catastrophic happens in the world which is none of our control, we can’t see anything. But this is our best of our expert.
Unidentified Participant
Are we keen on demerging the defence business soon?
Mahendra Nahata
Well, I can’t say demerging. We are currently trying to consolidate it under one roof which is HFCR Advanced Systems. But a restructuring committee has been formed precisely to look into such aspects. Whether it is efficient to demerge the businesses into their specialized areas so that some strategic tie up or even if that kind of thing is required can be done. So really let this restructuring committee which had been formed today itself do the study and come out with this recommendation.
Unidentified Participant
Okay, thank you. Thank you so much and all the best.
Mahendra Nahata
Thank you.
Operator
Thank you. The next question is from the line of Rishabh from Insect. Please go ahead.
Unidentified Participant
Yeah, hi sir. Congratulations on a good set of results. So sir, I am basically looking at the next three to four, three to five years for hfcl. So when we look at that kind of a vision. So what are the kind of growth rates which. And the margin improvement trajectory which we can you know, envisage what will be the optimum level of margins which we know we can achieve in the medium term and to support this what will be the key focus areas, you know to drive this thing? Any target mix if you can help us with will be helpful because we have various dimensions to our this export versus domestic and product versus services.
We have already done a lot of improvement in terms of product mix, export mix. So is there any more firepower left where we can actually see things moving and what will be the key risk during this period of next three to five year. Yeah,
Mahendra Nahata
In one question you asked 10 questions so I don’t. So you know, as for the as I said earlier, revenue growth in this particular year I can say around 20%, 25%, something like that. Again no guidance. This is just expectation on the base of current run rate. I am talking about, you know, we can expect and against the current run rate of you know, the way the margins are accruing we can expect some 3 to 4% extension in the margin also. That is the way the things are at this point of time. Unless something unknown happens as far as four to five years revenue expectation our aspiration is to reach to 10,000 crores.
Aspiration is to reach to 10,000 Crores. First expiration of 5,000 crore which this year we have reached 4,900 something, you know, which is anyway 5,000 Crores I hope we would have done some billing we would have done on first or second affairs. We could have possibly tried to dispatch it quicker on the 31st of March. So 5000 number would have been there. But anyway, nevertheless, so aspiration is to reach to 10,000. And risk factors, you know, I don’t see any risk factor as such except some geopolitical event which is out of our control.
Otherwise I don’t see any risk factor at this point of time because data center revenue is going to grow up. Because every day you see here billions of dollars of data centers being announced all across the globe. Even in India you hear 1 billion this company, another billion that company. You know, it’s happening on a daily basis. So I don’t feel that there would be any major risk. Data centers are being announced. So cable will be sold, connectivity solutions would be sold. No doubt about that.
Now geopolitical environment has turned this way in the world in recent past. Every country is going to increase the defense expenditure. So with defense expenditure increasing, our defense business becomes more secured. Export and indigenous requirement also because there is a atman Nirvartha kind of a mantra in our country. Every country you know is increasing its defense expenditure. So defense business is also quite, you know, on a progress path. Similarly EPC business with BharatNet and all that happening next three to four years, it is quite secured.
So I don’t find any major risk involved in implementing these businesses. Accept any unknown political geopolitical thing happening. Somebody closes Suez Canal tomorrow or somebody closes Panama Canal and something like that happening. Somebody dropping a big bomb somewhere, target going haywire, that’s not in my control. But otherwise nothing, nothing big unfortunately is seen at this point of time.
Unidentified Participant
And sir, what will be the optimum margins which we can, you know, see because we are currently at around 16% odd, we’re targeting something around 20% by next year. May or may not achieve that is another thing. But the point what I am trying to make is that is the margin trajectory. Like can we, can we aspire to have something like 25% in the next five years or something like that?
Mahendra Nahata
I don’t.
Unidentified Participant
Is that a possibility?
Mahendra Nahata
No, no, no. I don’t say that at this moment of time.
Unidentified Participant
I’m
Mahendra Nahata
Just saying that in this year there is a possibility of 3 to 4% increase in the margin year next? Very difficult to say. You know, every year you cannot have 3 to 4% increase. You know, that is impossible. Nobody can do that. The current year I see there is a possibility 3 to 4% increase
Unidentified Participant
Okay. Okay. Thank you sir.
Mahendra Nahata
Thank you.
Unidentified Participant
Yeah,
Operator
Thank you. The next question is from the line of Satya, an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Congratulations on a great set of numbers and thank you for the opportunity. Sir, I had a question on the defense products that we’ve been talking about. Anything, any other progress on the radar side on the electronic fuses side also we had approval of sorts. Any commercialization of that and on the BMP upgrade as well. So if you can give some color on those products.
Mahendra Nahata
No, I don’t give any color. I will give you plain white truth color. I don’t. So you know on BMP we just received a letter yesterday that by the 26th of June they want us to submit our our upgraded sample for evaluation. So we would be doing that. We have already put our BMP which they had given it to us. We have already sent it to Babina. The firing range in Uttar Pradesh near Jhansi which is army firing range for armored vehicles. It’s already sent there the 26th of June. It would be submitted to army for evaluation.
We are one of the five shortlisted parties of course. Fuse. As I said, you know, it underwent trial in Balasore in DRDO range. Some upgradation is required in couple of kind of uses which is currently being done. And another couple of months time it will be resubmitted for evaluation. Because DRDO wanted us to do some upgrades as per army’s requirement which we are doing at this point of time in other defense products. Yes, and I am happy to inform you and that is what is current information. And I am informing you on that basis.
The ammunition, you know factory which you are going to set up in Andhra Pradesh where as I said earlier, thousand acre land has been allotted to us. So Honorable Defense Minister together with under Chief Mr. Honorable Defense Minister Arji and Andhra Chief Minister Sri Chandra Babu Naidu will be laying foundation stone for our factory and another factory for another company on 15th of May. This 15th of May foundation stone will be laid down for these two factories. And we will start construction for ammunition factory.
So for which the first product is going to be multimode hand grenade which is a technology from drdo. Technology transfer has happened. DRDO has already tried. There is a lab called TBRL or something by of government. They have already tried the samples. It has been found successful aging certificate which is required. You know that this would not. You know this will last for three years at least. That has also been done. So we are now in my opinion qualified for participating in tenders And I expect a very very large tender to come up in another one month or one and a half months time where we will be participating.
There are only three licenses at the moment. Two private companies including US and one government company, Mil Munition India Ltd. And two out of three will get the order of this large tender. So let us see, we are first, second or third, we don’t know at this point of time. But yes, we are going to bid. And this is going to our first product in this new factory which you put up after Hon. C. Rajnath Ji and Sri Chandra Bhav Naidu lays the foundation stone on the 15th of May of this year.
Unidentified Participant
Great sir. Congratulations sir. Second question is on the telecom product side, how is the traction over there? And we haven’t spoken much about it. But what are we expecting in the next couple of years?
Mahendra Nahata
I tell you, you know telecom is a very peculiar, you know in product business it’s very peculiar segment. You know, sometimes what happens, you know, a new technology comes, then the demand all, all of a sudden goes up. 4G came suddenly in India for example. Demand of 1 lakh crore to lakh road, something like that. Then for some years 4G extension happens and then it becomes a stable network. Only wherever there is a hole or where there are more subscribers you can fill in, the gaps are done. The demand is low.
Then comes 5G and the demand comes up again. Huge demand comes up again. Then 5G is spread out all over the country. An optimum level of rollout happens. Then the demand stabilizes and only fill in the gap demand happens. That’s the situation right now with 5G. So now biggest spurt of demand will come when the 6G comes around 2029. 2029. I would say lot of work is going on. We are also working. So right now the demand is kind of demands us to fill in the gaps kind of agency. We’re not a very big divide.
Demand is there either India or anywhere else in the world. So big spurt in demand is expected in this sector. Another two to three years time frame. Three years time frame. But by that time data center demand will compensate or more than compensate lower demand of telecom sector which is a normal cycle in telecom.
Unidentified Participant
So this quarter how much did we do in the telecom product sale?
Mahendra Nahata
Telecom, you know, we. I don’t have a separate number. Including. Including fiber optic cable. We did 1200 crores. Just a second. About 150 crores.
Unidentified Participant
Thank you sir. That’s it. From myself.
Operator
Thank you. The next question is from the Line of Ajan Kia Jadav from Chris Portfolio pms. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity. My question is regarding the thousand acre defense plants that we are putting in Andhra state. So like this is a very big plan. So how much in total capex that we will be spending here and and year wise how it will be distributed, how and how it will be funded?
Mahendra Nahata
Look, you know we are still not planned. The foundation is turned on the 15th of May. We are in process of preparing the you know, DPR and all that depending upon the which products in the initial stage. But if we do just a multi mode hand grenade kind of a product which we are looking at, I think total capex would not. As I had said, you know total capex of this year is 600 crores out of which budgeted about 125 crores for this facility including land and building. And next two years would be another 250 crore.
Unidentified Participant
Got it. And it will be like self funded or like we have to take the debt or some partnership with other player too.
Mahendra Nahata
Not partnership, there’s no plan of any partnership in this at this point of time. You know, because partnership equity, partnership cannot be done when you are a mix of a telecom, defense and you know, fiber optic. And that’s why this exchange committee. But you know it would be a mixture of data, you know, equity and sorry internal accrual and debt.
Unidentified Participant
Got it. And the last question is like in the defense do we want to be a subsystem player or system player? Like what will be the sequence of our products to be commercialized? Like say thermal imaging Mm HG electronic fuse. So how will be the. How we want to place ourselves?
Mahendra Nahata
What do you mean by system and subsystem?
Unidentified Participant
Like the final part that will be supplying to the defense platforms. So we
Mahendra Nahata
Are applying final parts only. You know, thermal inside for example is a full system. The any radio we are supplying is a full system. Radar we will be supplying is a full system by itself of course can also be integrated with the larger system also can function as a system. It can be part of an integrated system also. You know it can work in both ways. So sometime thermal weapon side is a system by itself but it has to work with a rifle.
Unidentified Participant
I am not,
Mahendra Nahata
I’m doing. But it is still. It’s a system. So everything can be system or a subsystem.
Unidentified Participant
Not in that in terms of like electronic fuse. If you see if you are manufacturing only the fuse then the artillery shell and then the. Yeah, so. So that I was thinking of
Mahendra Nahata
Yeah. The fuse by itself is a system because it’s a independent equipment. But again, fuse by itself is not armament by itself. It has to be fitted into a shell. That means for shell, if I do shell not fuse again, I’m not in the full system. So everything in the system or subsystem.
Unidentified Participant
Good, good. Yeah, thank you.
Operator
Thank you. The next question is from the line of Smith Gala from RSPN Ventures. Please go ahead.
Smith Gala
Yeah, thank you for the opportunity and congratulations on a great set of numbers. My first question is a bit of. Is germanium, which is our key raw material for our fiber business? Is there a near term worry around it regarding its supply?
Mahendra Nahata
No, germanium is not a raw material for myself for a fiber business. It is raw material for preform. So somebody who manufacture preform for him, germanium tetrachloride is a issue and in shortage. But our suppliers of preform have not raised any such issue. And that, you know, germanium tetracloid is creating a trouble for them. We have not heard anything from them like that and we are receiving our supply of preform as per their commitment, you know.
Smith Gala
Okay. And our margins for this quarter specifically dropped a bit. Was there something to do with the ongoing crisis in the war compared to the last quarter? So I think sequential margin,
Mahendra Nahata
Blended margin, you know, a cable, it would have gone up because of epc, particularly that army contract where we are incurring expenses and not getting revenue, which would probably start from this quarter or maybe in the worst case, the next quarter. This has, you know, shown a little bit decrease, but that’s a very minor. And this quarter we believe that margin will go up.
Smith Gala
Okay, thank you. That was helpful. Thank you. That’s all from us.
Mahendra Nahata
Thank you.
Operator
Thank you. A reminder to all participants, please restrict yourself to one question. The next question is from the line of Tejas Patel from Nisha. Please go ahead.
Unidentified Participant
Yeah, hello. Am I audible, sir?
Mahendra Nahata
Yeah, yeah,
Unidentified Participant
Yeah. Thank you so much for the opportunity and congratulations for the results. Since you said, you know, you know, I think we are operating at full utilization since last quarters. Is it right to assume the. The incremental growth coming for the telecom business, apart from a, you know, little improvement in volumes, is all led by price, right?
Mahendra Nahata
Well, it is all led by price, but continuous increase in capacity. While we talk capacity increasing, two new machines are getting installed. You know, by the time we do the next call, there will be another couple of machine getting installed. So, you know, it is going on for both reasons. Volume increase because of new capacity expansion taking place and also the price increase, both are contributing to it. Hello. Thank
Operator
You. The next question is from the line of Dipeshili from Myania Finance. Please go ahead.
Mahendra Nahata
Yep.
Unidentified Participant
I just wanted to understand what is the realization of OFCs in this quarter. Average realization.
Mahendra Nahata
Average realization. No, I think I answered this question earlier. Also
Unidentified Participant
You mentioned that there are different. Different types of OSCs. It’s a bit difficult. It can range
Mahendra Nahata
Very difficult to say, you know because there are OFCs of 7,000 fibers per cable and there is the OFC. One fiber per cable or two fibers per cable. You know. How do I give you average realization? It’s very difficult.
Operator
Thank you. The next question is from the line of D from Crown Capital. Please go ahead.
Unidentified Participant
Hello. Good evening sir. Thank you so much for taking my question. Sir. So just one small clarification. In terms of our revenue growth we are kind of seeing around 20, 25% growth. But with the data center you’re expecting around 500 crores. And even if I. If I see our Q4 revenue, that was also around 1800 crores. So are we you know kind of being conservative in our revenue guidance? Because even if I annualize our, you know, Q4 revenue we can maybe look higher revenue for the full year, sir. So is it possible we can over perform our guidance by like we can do 30, 35,
Mahendra Nahata
Even any guidance. Please avoid the expectation.
Unidentified Participant
Expectations. Can we over.
Mahendra Nahata
It’s just my estimation. First of all that must be very clear. Number one. Number two, when I say 2025 I said on the year to year basis. Quarter to quarter basis. No, year to year basis. I expect 20 to 25% increase in the revenue. So this year we had roughly about 5,5000 crores. So 20% would mean somewhere 6025% could mean 6250. So when I give a number, of course I try to be on a conservative side. It would be good that if we can over perform so conservatively you should take 20%. But yes, there is a good possibility of, you know, it becoming better.
But conservatively you can estimate 20, 25%.
Operator
Thank you. Based
Mahendra Nahata
On today’s market conditions.
Operator
Thank you. The next question is from the line of Gautam Rajesh from LEO Capital. Please go ahead.
Unidentified Participant
Hi sir. Thank you for taking my question. So I wanted to know what was the AIDC linked IBR cable revenue as a percentage of optical fiber segment revenue in FY26. Q4. FY26. And what is your outlook it in FY27?
Mahendra Nahata
Well you know I have not got the number of this IBR and that would be a little bit of a commercially confidential information also to share revenue backup in that way. But yes, it contributed a major part of revenue of fiber optic cable. That much I can tell you. It contributed a major part. So would be
Unidentified Participant
Plus 50%.
Mahendra Nahata
You can say that. You can say that. And what was your second question?
Unidentified Participant
What is the outlook for this percentage to increase to how much can this go up in the mix?
Mahendra Nahata
Well, you know, it all depends upon kind of customers and all that but I think it will still constitute a major part.
Unidentified Participant
Okay. So you ideally want expect to maintain the plus 50% mix in your overall OS optical fiber cable revenue.
Mahendra Nahata
Yeah. More than 50%. Sure.
Unidentified Participant
Okay. Thank you. Thank you. Congratulations.
Mahendra Nahata
Thank you.
Operator
Thank you. The next question is from the line of Saket Kapoor from Kapoor company Please go ahead.
Smith Gala
Hope
Mahendra Nahata
I’m audible. Yeah, you are audible
Smith Gala
For the opportunity. So just to harpen on the point that when we look at our margins for telecom product for this quarter they are on a revenue of 900 crore. We have done 360 crore. That is a 40% PBT number for the year as a whole. 2930, 765 that that translates into 2627%.
Mahendra Nahata
Let me just wait a second. You know note down what you have seen and look at my numbers.
Smith Gala
Yes.
Mahendra Nahata
Yeah. Which number you are talking about
Smith Gala
Sir? I am talking about firstly this quarter we posted revenue under the telecom product category at 901 crore and profitability at 361 crore. That translates into a margin PBT margin of 40%. When we look at our annual number the telecom product category posted revenue of 2931 and profitability of 764 crore. That is a 26% PBT margin.
Balasubramanian A
So
Smith Gala
Once we club the turnkey business losses the margins EBITDA margins are lower to the tune of 1617% next year. So if you could give us some color for this year we have some exceptional telecom margin product of 26 27% and this will go down or incremental has 143 to 4%. How will that play out in in the category? Sir
Mahendra Nahata
Tell you there are two factors. One, this telecom product margins are expected to continue and maybe with some improvement, maybe there second is turnkey losses will go down because as I said multiple times in this call that you know NFS has been warranty period where we don’t receive any money causes a lot of drainage into revenue which will still which will cease from current financial year maybe Q2 and then that loss will be evened out. That will result in Increase on blended mix of profitability and some percentage is improved.
Expected to improve in the telecom also because on a what you see is increased which happened more from the Q3 and 4 of the last year. Q1 and Q2 was not that great. So this year from Q1 it has started. If this continues in the same manner, there will be some margin improvement in the products also on an overall blended average basis and reduction in the loss of this turnkey EPC. So all put together I expect 3 to 4% increase.
Smith Gala
Correct on that point. So trend is one off for this quarter for the telecom product. Say that again please. 40% for this quarter at 360 crore profitability in the telecom product on our revenue of 900. This 40% is a one off that we have exhibited because of the product mix only.
V R Jain
Just have a look at the consolidated number which is 1206 crore from telecom products where the margins are 31.75% during this quarter.
Smith Gala
We have
V R Jain
To evaluate it from the consolidated. So
Smith Gala
31% also sir. J will hold good for the going quarters also.
V R Jain
No see it depends on the product mix. We are having this telecom product also have some telecom product, optic fiber cable, a couple of other products also.
Smith Gala
So
V R Jain
Generally yes. Generally yes.
Mahendra Nahata
Generally yes. It will hold good for the current quarter also. Generally yes.
Smith Gala
Okay, thank you sir. If anything else I’ll take offline with Amitji and thank you once again for the elaborate discussion and hope for sustained set of improved set of number going ahead of it. All the best to the team sir.
Operator
Thank you. The next question is from the line of Raj Vs from Bonanza Portfolio. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Thanks for the opportunity. I just wanted clarity with respect to the optical fiber. You said that you are running at 100 capacity utilization, right? And we have close to 13,483rd order book. So like are we still taking fresh orders as well? Because my assumption is right. If you are already running at 100% capacity and we have these kind of order book. So if you have new orders coming in, so are they, are they coming into the backlog or what is the timeline? Just wanted clarity on that new
Mahendra Nahata
Order. As I said, hundred percent capacity utilization is there. When we are supplying orders which are existing orders, we have not booked our entire capacity. We have left some capacity out for our regular customers and spot orders, you know. So if I sell my 100% of capacity, I cannot take advantage of spot prices which are at this point of time kind of a market are better than the long term prices. So we need to take advantage of that also. And number two, there are some customers which are my customers since our 10 years, 15 years, they give orders in small batches.
I can’t forget them. That you know. And this time I will not supply you. So we supply to them also. And we have reserved some quantity vacant for them also. But mostly for the spot orders. So we are taking new orders. Why not? We are taking new orders. But we are very hesitant to take large new orders. Because unless we expand our capacity which is happening right now, we will be very hesitant to take large dream waters. But see 200 crores, 500 crores. Those kind of orders we are taking.
Operator
Thank you. The next question is from the line of Prak from Omni securities. Please go ahead.
Unidentified Participant
Good evening sir. Congratulations for a good set of numbers. Sir, we are seeing that preform prices are also continuously rising. Given a 20, 25% increase in the pre firm prices, what compression would you see on your EBITDA margin or net margin?
Mahendra Nahata
Look, you know, as I said pre firm price we are already, you know, we have long term contracts. So for me I don’t know what is the increase in pre firm prices. I have no idea. But yes, pre firm prices may rise. And my future when the long term contract finishes, I don’t think I will get it at the current price. But you know, with the pre firm rising, you know the price of table will also rise. You know, it’s not only free form every good, everything happens.
Unidentified Participant
Would we be able to pass the increase in full?
Mahendra Nahata
Oh yes, I think. Yes, no doubt.
Unidentified Participant
Okay. Thank you sir.
Operator
Thank you. The next question is from the line of Tanmay from 360. Please go ahead.
Unidentified Participant
Hi. Sorry for letting me ask again. I just want to know because the price of helium and polymers both have been increasing sharply. What percentage of our cost goods is from both of these things? And do we see disruption coming in because of that?
Mahendra Nahata
There’s no disruption. But I think total cost of helium and you know, polymers all put together in our final cap, you know, product of cable should be around 20%. Should be around 20%.
Unidentified Participant
And we are again
Mahendra Nahata
And they know disruption.
Unidentified Participant
But considering we sell in long term contracts, the cost of acquiring these goods must have increased by a lot. Pushing our margins down or that’s not a problem right now
Mahendra Nahata
The prices have also gone up now.
Unidentified Participant
Okay. Okay. So even for the long term contracts we’re able to adjust the prices. The contract that was signed before the price hike,
Mahendra Nahata
You know. You know, look, price hike,
Unidentified Participant
You know
Mahendra Nahata
Emer and helium has taken Place in let’s say last one month house. Some contracts were signed earlier, some have been signed later. Later the margins may be much higher than the earlier ones. So as a mix what you see is the margin is there, you know, can’t calculate by, you know, contract to contract, you know, that’s why I say spot contract. The margins are much higher. The contract which was signed before this price hike maybe margin goes down by 1 or 2%. But these are long five year contracts.
So five year contract, these prices may again come down.
Operator
Thank you. The next question is from the line of Nitik Mohanta from Sequence. Please Sequent investment. Please go ahead.
Unidentified Participant
Hi sir, good afternoon and thank you for the opportunity. First of all, congratulations on a great set of numbers. So my question is on the OSC front so if you could throw some light on realization for optical fiber cable. I think so. In last call we had mentioned that our blended realization is around rupees 1055 per SKM. How would that have panned out in quarter four? And what does it look like going forward?
Mahendra Nahata
You know, look it has gone up definitely. But you know again I always said three times on this call then I cannot put a number now because in the last few months the type of cable has changed so much with hyper scalers and all that buying you know, cable from 800 fiber to 7,000 fiber and telco is buying 2 fiber to 288 fiber. So and different kind of constructions. So I can’t put a number to a per fiber cable, fiber cable, kilometer price. That’s not possible now. The constructions are different, technology is different, density is different.
So it’s very difficult to put a number to per 500 kilometer price data is definitely gone up. Yeah
Unidentified Participant
Right sir, understood. But so it would be fair to say that the prices would have moved at least by 15 to 20% for us in quarter four.
Mahendra Nahata
More than that.
Unidentified Participant
More than that. Okay sir, thank you. And my second question also we had, I think we have repeatedly mentioned that we have a long term contract for the preform that we acquired. So given your guidance of almost 20% EBITDA margins next year in this segment, does it also account for the increased price of this preform? And then what is the nature of our contracts? Like do we do it for six months, months for annually or how are they repriced from the customer?
Mahendra Nahata
Answer that question that it is six months of a very commercially confidential but it has taken into account any increase in the prices. Of course.
Unidentified Participant
Okay. Lastly sir, the receivable number on a balance sheet like almost more than 2000 crores of receivables. So could you give us split how much of these receivables is from the ETC segment and how much of the receivables are more than six months?
Mahendra Nahata
I don’t have this detail and immediately available but if you can send the question to me writing, I can answer this right now immediately. I don’t have that breakup available with me.
Unidentified Participant
Thank you. Thank you sir.
Operator
Thank you.
Mahendra Nahata
So I think this is enough. We have taken up all the questions and now any further questions that can be sent to our, you know, company secretary or chief, you know, investment officer who will reply to them immediately to you, please send them in writing. And I thank you, thank all of you who have participated in this call today and spared so much time to be with us. And I honestly thank you all very much. And I can assure you that company is on solid foundation, doing well. It has got very diversified product range all of which are excellent demand opportunities.
Some have higher profitability, some have lower profitability. You know, because all the products cannot have the highest or the lowest profitability. There is a mix always but with a very robust order book which includes largely from optical fiber cable which has got a better profitability today and the demand trajectory which you can see in data centers and all which is going around the world. And with this kind of long term contracts with a reasonable profitability and also the different sectors ramping up with acquisition given this opportunity into aerospace sector that will also increase revenue.
Data center interconnectivity business which will increase our revenue significantly this year and next year we have a very robust performance in front of us. And as I said we expect that this year again we should be able to have a 20, 25% increase in revenue and looks like that we can have a 3 to 4% increase in our profit margins also predominantly because of one, better realization from products and second, our turn the losses is getting away because of this NFS contract getting community to AMC contract very soon.
Thank you very much gentlemen and I really appreciate your participation. And any questions you have, any further questions, please address us directly on our email and you will be immediately given answer. Thank you very much.
Operator
Thank you. On behalf of Aryan Capital Markets Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.