HFCL to build ₹1,680-crore defence platform, consolidates aerospace, electronics units
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New Delhi-headquartered HFCL Ltd on Wednesday announced the consolidation of its defence and aerospace operations under a new subsidiary with a confirmed order book of ₹1,680 crore, as it expands into aerostructures, radar systems and electro-optics.
According to an exchange filing, the platform, to be housed under HFCL Advance Systems Pvt Ltd (HASPL), will combine multiple businesses through a series of transactions, including the acquisition of Spiral EHL Engineering for a consideration of up to ₹25 crore.
As part of the structure, Spiral will in turn acquire the aerostructure and aeronautics business of Defsys Solutions for up to ₹25 crore, bringing manufacturing capabilities and export-linked programmes into the platform.
The combined entity will start with an order book comprising ₹1,570 crore of export orders and ₹110 crore of domestic orders, according to the company's statement.
HFCL will retain a 51% stake in HASPL, with the balance held by promoters, an employee trust and external investors.
Entry into high-barrier segments
The move marks HFCL’s entry into aerostructure and aerospace manufacturing, segments characterised by long qualification cycles and limited supplier ecosystems. The consolidation also expands its presence in indigenous radar systems and electro-optical solutions used in surveillance and targeting applications.
Mahendra Nahata, managing director, HFCL, said, “The creation of HFCL Advanced Systems Private Limited represents HFCL’s most significant move with strategic commitment to building a sovereign, technology-led defence capability for India. We are starting with a confirmed export order book, proven businesses, indigenous technology and manufacturing assets, and the organisational capability to execute."
"India’s defence indigenisation agenda requires private sector partners who combine technology depth with program execution credibility. HASPL is our commitment to this national priority, and to long-term value creation for our shareholders.”
The company will have manufacturing facilities in Gurgaon and Bengaluru.
The transaction documents are expected to be executed by May 31, 2026, with financial closure targeted within the current calendar year, subject to approvals.
The defence push comes alongside HFCL’s ongoing expansion in telecom infrastructure. In a separate decision, the company has approved a ₹580 crore investment to set up a preform manufacturing facility, aimed at backward integration in its optical fibre business.
Shares of HFCL ended 1.74% higher at ₹70.79 on the National Stock Exchange on Wednesday. The stock has declined over 11% in the past one year, underperforming the broader Nifty 500 index, which has remained nearly flat over the same period.