HFCL extends capex timeline due to market conditions

HFCL Limited has released its Monitoring Agency Report for the quarter ended September 30, 2025, detailing the utilization of proceeds from its Qualified Institutions Placement (QIP). The company raised INR 352.00 crore by issuing 5,10,14,491 equity shares at INR 69 per share.

The report highlights that capital expenditure, originally projected to be utilized by July 31, 2025, experienced a slower pace than planned. This was primarily attributed to changes in the economic and geopolitical environment, which adversely affected market conditions for optical fiber cables. As a result, HFCL's board approved an extension for the utilization of unutilized capital expenditure funds until March 31, 2026.

Despite the delay in capital expenditure, other objectives, including Research and Development Expenditure, Repayment/Prepayment of Short-term borrowings, Funding Working Capital requirements, and General corporate purposes, are proceeding without delays. The company does not anticipate any impact on the cost or viability of the projects due to the extension. Approximately 95% of the unutilized proceeds are held in term deposits, assigned as margin against Capex LCs.