3 Optical Fibre Cable Stocks to Watch

#2 HFCL

HFCL has become one of India's major players in the optical fibre cable (OFC) industry and is increasingly positioning itself as a global high-capacity fibre solutions company rather than just a domestic telecom supplier.

HFCL Financial Snapshot

Moving ahead, HFCL's expansion plans are progressing steadily.

As highlighted in its investor presentation on 30 April 2026, the company is set to increase its Optical Fiber Cable (OFC) manufacturing capacity to 43 million (m) fkm by June 2026.

It has already doubled its optical fiber production capacity from 14 m fkm to 28 m fkm, with a goal to reach 33.9 m fkm by December 2026.

Furthermore, HFCL's planned foray into preform manufacturing aims to enhance supply-chain security, boost cost efficiency, and support long-term margin growth.

In a noteworthy strategic initiative, the company has signed a Memorandum of Understanding (MoU) to explore opportunities in the defence aerospace sector.

Overall, rising optical fibre cable demand has brightened the prospects of the company.

#3 Finolex Cables

Finolex Cables is a leading optical fibre manufacturer in India, with three plants including two specialized in optical fibre cables and one in optical fibre production.

It offers a vast array of products - PVC Insulated Industrial Cables, FinoGreen PVC Insulated Industrial Cables, PVC Insulated Single Core and Multicore Flexible Industrial Cables, Rodent Repellent Multicore Flexible Industrial Cables, PVC Insulated Winding Wires, 3 Core Flat Cables, XLPE 3 Core Flat Cables, Power and Control Cables, High Voltage Power Cables, etc.

Finolex Cables Financial Snapshot

In the third quarter of FY26, the optical fibre cable volumes were up by almost a third. In a recent investor conference call the management highlighted that there is a shortage both on the preform side as well as on the fiber side.

The company is investing in both the preform factory as well as in the expansion on fibre draw towers. Currently, the preform factory is under production trials and the management expects to commission it shortly.

As far as the fiber draw expansion is concerned, the management expects about 8 m km by end of Q1 FY27.

Conclusion

Fibre optic and OFC stocks are benefiting from strong structural themes such as BharatNet expansion, 5G rollout, AI-driven data centres, cloud infrastructure and rising global fibre demand.

Companies are also expanding capacities and winning large orders.

However, investors should remain cautious after the sharp rally in many fibre-related stocks. The sector has historically seen volatile earnings, pricing pressure and cyclical demand swings.

Some stocks may already be discounting years of future growth, making valuations vulnerable if execution slows or margins disappoint. Investors should focus on balance sheet strength, order execution and sustainable profitability rather than chasing momentum.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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