New Delhi, March 2026.

HFCL Limited (“HFCL”), a leading technology enterprise, today announced a major strategic expansion and consolidation of its defence business, establishing a scalable platform to drive long-term growth in high-value Aerostructure, Aeronautics and Defence manufacturing.

The initiative brings together complementary capabilities across Aerostructures, Aeronautics, Radar Systems, and Advanced Thermal Weapon Sight solutions under one unified platform, strengthening HFCL’s position in India’s rapidly evolving defence ecosystem. One of the key highlights of the expansion is a confirmed export order book of approximately Rs.1,570 crore.

Strategic Consolidation to Create Synergies

HFCL will implement this consolidation through its subsidiary, HFCL Advance Systems Private Limited (“HASPL”), which will act as the vehicle for multiple defence and aerospace business.

As part of this initiative, HASPL will:

·         Acquire 100% stake in an engineering and precision manufacturing company, Spiral EHL Engineering Limited (“Spiral”)which in turn will be acquiring the Aerostructure and Aeronautics business of Defsys Solutions Private Limited (“Defsys”) on a slump sale basis

·         Acquire HFCL’s 80% stake in Raddef Private Limited,a Radar Technology Company, strengthening indigenous defence electronics capabilities

·         AcquireHFCL’s existing Thermal Weapon Sight (TWS) business

These steps will create a vertically integrated platform spanning design, prototyping, precision manufacturing, and system integration capabilities with HFCL having majority equity.

Strategic Context Behind HASPL

India's defence procurement landscape is undergoing a structural transformation. With the Government's push towards indigenisation under 'Make in India', with a rising share of the Rs.6.2 lakh crore defence budget earmarked for domestic procurement, and Indian aerospace exports gaining global credibility, the window of opportunity for a capable, technology-first company to build scale is time-bound.

HFCL brings to this opportunity multiple years of complex manufacturing experience in mission-critical networks for defence services, built through telecom infrastructure deployments in the most demanding terrains; a disciplined capital allocation track record; and the organisationalcapability to execute at scale.

CurrentOrder Book

HASPL: Three Pillars of Defence Technology

1.       Aerostructure & Aeronautics Manufacturing

HASPLwith the integration of Spiral’s manufacturing capability will encompass precision component manufacturing and product assembly for Aerostructure and Aeronautics programs. With certified facilities in Gurgaon and Bengaluruand a confirmed export order book of Rs.1,570 crore, this business operates at the intersection of advanced manufacturing and global aerospace supply chains, a domain characterised by years-long qualification cycles and high barriers to entry for new suppliers.

Spiral has agreed renaming itself as HFCL Defence Systems Limited or any such other name with prefix HFCL, as maybe approved by regulatory authorities. HFCL’s Board has also approved an issuance of NOC for using the HFCL name as prefix.

2.       Radar & Surveillance Systems

Through Raddef Private Limited (an existing subsidiary of HFCL), HASPL brings fully indigenous radar technology capability to the Indian defence ecosystem. These systems span Ground Surveillance, Coastal and Maritime Surveillance, Drone Detection, Foliage Penetration Radars, and RF Jamming Technologies — addressing the highest-priority intelligence and security requirements of India's armed forces. Indigenous Radar Capability is a strategic national asset.

3.       Thermal Weapon Sight (TWS) Solutions

HFCL's TWS business delivers Advanced Electro-Optical and Infrared Targeting Solutions for Defence and Security Applications. Mission-critical, night-capable, and field-proven, TWS systems are a recurring requirement across infantry, armoured, and special forces platforms globally. The transfer of this business to HASPLcreates a natural multi-sensor systems integration opportunity with the Radar and Aeronautics capabilities on the same platform.

HASPL’s emphasis on sovereign control over critical technologies positions the new “Made in India” platform as strategic addition to the company’s existing defence business. The existing portfolio of defence communications spans acrossElectronic Fuses, Radio Communication Equipment of different types, Tethered Drone, and modernizationof the BMP2 project whereinHFCL is one of five shortlisted players.

Speaking on this announcement, 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 defenceindigenisation 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, leveraging two of India’s most established defence and aerospace talent hubs.

The transactional agreements are targeted for execution on or before May 31, 2026, with financial closing expected within the current calendar year itself.