HFCL Limited's Board of Directors, in a meeting held on June 03, 2026, approved a significant restructuring of its defence business. The company will invest ₹89.25 Crore in its wholly-owned subsidiary, HFCL Advance Systems Private Limited (HASPL), through a share subscription agreement. This investment is part of a larger strategy to consolidate and expand HFCL's defence operations. As part of this restructuring, HFCL will divest up to 80% of its stake in Raddef Private Limited, another non-material subsidiary, to HASPL for ₹75 Crore. Additionally, HFCL's thermal weapon sight (TWS) business will be transferred to HASPL on a slump sale basis for ₹50 Crore. Further strengthening the defence vertical, HASPL will acquire 100% of HFCL Defence Systems Private Limited (HDSPL) from Defsys Solutions Private Limited for ₹25 Crore. HDSPL, in turn, will acquire the aerostructure business of Defsys for another ₹25 Crore. These transactions are expected to be completed within the calendar year 2026. The overall objective is to establish a focused and scalable platform under HASPL, enhancing HFCL's presence in the defence and aerostructures segments. This strategic move aims to leverage an existing export order book of approximately ₹1,890 Crore and consolidate complementary strengths in radar, surveillance systems, and thermal weapon sights, aligning with the 'Make in India' initiative.
