Optical Fiber Prices Triple in 18 Months Amid AI Boom & Helium Shortage
Prices up 3.3x (₹15 to ₹50/km in China). Bend-insensitive fiber for AI data centers at ₹65/km.
GPU racks need 16-36x more fiber than CPU setups. Hyperscalers alone are fueling 76% YoY demand growth.
Preform shortages extend lead times to 60+ weeks. Global capacity expansions are lagging, so prices stay elevated.
Major Beneficiaries:
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Optical fibre demand rising with global data centre & AI expansion.
~20% revenue from data centers → potential to reach ~30% in 12 months. Steady telecom demand adds visibility.
EBITDA margins may improve to ~19–20% (US tariff easing).
Weak base → potential strong PAT growth
Rising global optical fiber prices Export demand is also improving peers like HFCL are expanding capacity.
Main Risk: Rising germanium prices are impacting costs along with helium prices.
Positive…
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HFCL Ltd: FY27 Growth Roadmap
Revenue Target:
20–25% growth targeted for FY27.
Recovery post optical fiber downcycle.
EBITDA Outlook:
Near-term: ~14%.
FY27 potential: +3–5% expansion.
Capacity Expansion:
Significant capex for global demand.
Optical fiber: 29M → 34M fiber kms (Dec 2026)
Optical fiber cable: 33M → 42M kms (Sep 2026)
Defense Growth:
Next major engine: ₹4–5bn revenue in FY27.
Market Shift :
Telecom → Datacom dominance.
Hyperscalers/data cen…
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Management sees fairly robust demand for optical fiber cables in data centers. Can Gain Market Share from Sterlite Tech and HFCL
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