HFCL LIMITED - Capital/Financing Update 2026

HFCL/SEC/25-26 February 03, 2026

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	BSE Ltd. 1stFloor, New Trading Wing, Rotunda Building Phiroze Jeejeebhoy Towers, Dalal Street, Fort Mumbai – 400001 [email protected] Security Code No.: 500183		National Stock Exchange of India Ltd. Exchange Plaza, 5thFloor, C – 1, Block G Bandra – Kurla Complex, Bandra (E) Mumbai – 400051 [email protected] Security Code No.: HFCL

RE: Regulation 32(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Subject: Monitoring Agency Reports on the utilisation of proceeds raised through Qualified Institutions Placements for the Quarter ended December 31, 2025

Dear Sir(s)/ Madam,

We would like to inform that the Company had raised funds by way of allotment of 5,10,14,491 (Five Crore Ten Lakh Fourteen Thousand Four Hundred and Ninety One) equity shares of face value of Re.1/- each, to qualified institutional buyers ("QIBs") , at a price of Rs.69/- per Equity Share (including premium of Rs.68/- per Equity Share) , pursuant to the resolution passed by the Board of Directors dated September 02, 2022, special resolution passed by the Shareholders at their 35[th] Annual General Meeting (AGM) held on September 30, 2022, the preliminary placement document dated August 28, 2023, the placement document dated August 31, 2023 and resolution of the Fund Raising Committee of the Board of Directors dated August 31, 2023 (the “ Issue ”).

We would like to further inform that the Company had also raised funds by way of allotment of 8,79,29,651 (Eight Crore Seventy Nine Lakh Twenty Nine Thousand Six Hundred and Fifty One) equity shares of face value of Re.1/- each, to QIBs, at a price of Rs.62.55/- per Equity Share [reflecting a discount of ₹ 3.29 (i.e. 5%) on the floor price of ₹65.84 per Equity Share] (including premium of ₹ 61.55 per Equity Share) , pursuant to the resolution passed by the Board of Directors dated July 25, 2025, special resolution passed by the Shareholders at their 38[th] AGM held on September 15, 2025, the preliminary placement document dated December 22, 2025, the placement document dated December 24, 2025 and resolution of the Fund Raising Committee of the Board of Directors dated December 24, 2025.

In terms of Regulations 32(6) of the SEBI Listing Regulations read with Regulation 173A(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"), please find enclosed the Monitoring Agency Reports for the quarter ended December 31, 2025, issued by CARE Ratings Limited, Monitoring Agency, appointed to monitor the utilisation of proceeds raised through issuance of equity shares by way of Qualified Institutions Placements.

You are requested to take the above information on records and disseminate the same on your respective websites.

Thanking you.

Yours faithfully, For HFCL Limited

MANO Digitally signed by MANOJ BAID Date: 2026.02.03 J BAID 18:25:18 +05'30'

(Manoj Baid) President & Company Secretary

Encl .: Monitoring Agency Reports

Regd. Office & Works : 8, Electronics Complex, Chambaghat, Solan-173213 (H.P.) Tel: (01792) 230644, 230645, 230647 Fax: (01792) 231902 Corporate Identity Number: L64200HP1987PLC007466

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No. CARE/NRO/GEN/2025-26/1161

Monitoring Agency Report

The Board of Directors HFCL Limited

8, Commercial Complex, Masjid Moth, Greater Kailash – II, New Delhi – 110048, India

February 03, 2026

Dear Sir/Ma’am,

Monitoring Agency Report for the quarter ended December 31, 2025 - in rela�on to the Qualifed Ins�tu�ons Placement of Equity Shares of HFCL Limited (“the Company”)

aggrega�ng to Rs. 352.00 crore of the Company and refer to our du�es cast under 173A of the Securi�es & Exchange Board of India (Issue of Capital & Disclosure Requirements) Regula�ons.

In this connec�on, we are enclosing the Monitoring Agency Report for the quarter ended December 31, 2025 as per aforesaid SEBI Regula�ons and Monitoring Agency Agreement dated August 28, 2023.

Request you to kindly take the same on records.

Thanking you, Yours faithfully,

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Sahil Goyal Assistant Director [email protected]

CARE Ratings Limited

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9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

CIN-L67190MH1993PLC071691

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Report of the Monitoring Agency

Name of the issuer: HFCL Limited For quarter ended: December 31, 2025 Name of the Monitoring Agency: CARE Ra�ngs Limited

(a) Devia�on from the objects: Nil

(b) Range of Devia�on: Not Applicable

Declaration:

We declare that this report provides an objective view of the utilization of the issue proceeds in relation to the objects of the issue based on the information provided by the Issuer and information obtained from sources believed by it to be accurate and reliable. The MA does not perform an audit and undertakes no independent verification of any information/ certifications/ statements it receives. This Report is not intended to create any legally binding obligations on the MA which accepts no responsibility, whatsoever, for loss or damage from the use of the said information. The views and opinions expressed herein do not constitute the opinion of MA to deal in any security of the Issuer in any manner whatsoever. Nothing mentioned in this report is intended to or should be construed as creating a fiduciary relationship between the MA and any issuer or between the agency and any user of this report. The MA and its affiliates also do not act as an expert as defined under Section 2(38) of the Companies Act, 2013.

The MA or its affiliates may have credit rating or other commercial transactions with the entity to which the report pertains and may receive separate compensation for its ratings and certain credit related analyses. We confirm that there is no conflict of interest in such relationship/interest while monitoring and reporting the utilization of the issue proceeds by the issuer, or while undertaking credit rating or other commercial transactions with the entity.

We have submitted the report herewith in line with the format prescribed by SEBI, capturing our comments, where applicable. There are certain sections of the report under the title “Comments of the Board of Directors”, that shall be captured by the Issuer’s Management / Audit Committee of the Board of Directors subsequent to the MA submitting their report to the issuer and before dissemination of the report through stock exchanges. These sections have not been reviewed by the MA, and the MA takes no responsibility for such comments of the issuer’s Management/Board.

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Signature:

Name and designation of the Authorized Signatory: Sahil Goyal Designation of Authorized person/Signing Authority: Assistant Director

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CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, 4th Floor, Godrej Coliseum, Somaiya Hospital Noida, Road, Off Eastern Express Highway, Sion (East), Gautam Budh Nagar, Uttar Pradesh -201301 Mumbai - 400 022 Phone: +91-120-4452000 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

CIN-L67190MH1993PLC071691

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1) Issuer Details:

Name of the issuer Name of the promoter Industry/sector to which it belongs

: HFCL Limited

: Mr. Mahendra Nahata : Telecommunica�ons - Telecom Equipment & accessories

2) Issue Details

Issue Period : August 28, 2023 to August 31, 2023 Type of issue (public/rights) : Private Placement Type of specified securi�es : Equity Shares IPO Grading, if any : Not applicable Issue size (in crore) : Rs. 352.00 crore

3) Details of the arrangement made to ensure the monitoring of issue proceeds:

Par�culars	Reply	Source of informa�on / cer�fca�ons considered by Monitoring Agency for prepara�on of report	Comments of the Monitoring Agency	Comments of the Board of Directors
Whether all u�liza�on is as per the disclosures in the Ofer Document?	No	Chartered Accountant cer�fcate*, Bank statement and Placement Document, Management Cer�fcate	Refer Note 1	No Comments Received
Whether shareholder approval has been obtained in case of material devia�ons# from expenditures disclosed in the Ofer Document?	Not applicable	Not applicable	Not applicable	No Comments Received
Whether the means of fnance for the disclosed objects of the issue have changed?	No	Management Cer�fcate	Nil	No Comments Received
Is there any major devia�on observed over the earlier monitoringagencyreports?	No	Monitoring agency reports	No devia�on over earlier monitoring agencyreports	No Comments Received
Whether all Government/statutory approvals related to the object(s)have been obtained?	Yes	Management Cer�fcate	Nil	No Comments Received
CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691

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Par�culars	Reply	Source of informa�on / cer�fca�ons considered by Monitoring Agency for prepara�on of report	Comments of the Monitoring Agency	Comments of the Board of Directors
Whether all arrangements pertaining to technical assistance/collabora�on are in opera�on?	Not applicable	Management Cer�fcate	Nil	No Comments Received
Are there any favorable/unfavorable events afec�ng the viabilityof these object(s)?	No	Management Cer�fcate	Nil	No Comments Received
Is there any other relevant informa�on that may materially afect the decision makingof the investors?	No	Quarterly Results, Management cer�fcate	**	No Comments Received

a) Devia�on in the objects or purposes for which the funds have been raised

Note:1 u�liza�on was primarily due to changes in the economic and geo-poli�cal environment, which adversely impacted market condi�ons for op�cal fiber cables. Consequently, the Company undertook capital expenditure at a slower pace, resul�ng in part of the allocated funds towards capital expenditure remaining unu�lized as of July 31, 2025, as per the �meline specified in the offer document. The Company, in its Board mee�ng held on July 25, 2025, approved an extension of the �meline for u�liza�on of the unu�lized amount up to March 31, 2026. Till December 31[st] , 2025, Company has incurred capex of Rs. 36.05 crore out of the total proposed cost of Rs. 75.00 crores to be incurred by March 31[st] , 2026 (revised with board approval) from the proceeds of the issue.

** In H1FY26 Company reported TOI of Rs. 1914.36 crores (H1FY25: Rs. 2251.85 crores) witnessing a decline by ~15% and PBILDT declined to ~ Rs. 219 crores (H1FY25: Rs. 333.11 crores). The same was due to subdued performance during Q1FY26 during which the Company’s TOI moderated at Rs. 871 crore, reduc�on of ~25% on a Y-o-Y basis. Accordingly, profitability margins of the Company remain moderate at 3.26% in Q1FY26. However, demand of OFC’s witnessed improvement in Q2FY26 as Company reported improvement in its profitability with PBILDT at Rs. 190.33 crores (Q2FY26: 158.22 crores), TOI stood at Rs. 1043.34 crores (Q2FY25: Rs. 1093.61). Consequently, PBILDT margins improved at 18.24% in Q2FY26 as against 14.47% in Q2FY25.

4) Details of objects to be monitored:

CARE Ratings Limited

9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

CIN-L67190MH1993PLC071691

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

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(i) Cost of objects –

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Comments of the Board of Directors
Source of information / Original cost Comments of
Particulars of -
Sr. Item certifications considered by (as per the Offer Revised Cost the
Reason for cost Proposed firm
No Head Monitoring Agency for Document) in Rs. in Rs. Crore Monitoring
revision financing option arrangements
preparation of report Crore Agency
made
Chartered Accountant
No Comments No Comments No Comments
1 Capital Expenditure certificate, Bank statement 75.00 NA NA
Received Received Received
and Placement Document
Chartered Accountant
Research and Development No Comments No Comments No Comments
2 certificate, Bank statement 85.00 NA NA
Expenditure Received Received Received
and Placement Document
Chartered Accountant
Repayment/Prepayment of No Comments No Comments No Comments
3 certificate, Bank statement 74.04 NA NA
Short term borrowings Received Received Received
and Placement Document
Chartered Accountant
Funding Working Capital No Comments No Comments No Comments
4 certificate, Bank statement 75.00 NA NA
requirements Received Received Received
and Placement Document
Chartered Accountant
No Comments No Comments No Comments
5 General corporate purposes certificate, Bank statement 33.46 NA NA
Received Received Received
and Placement Document
Total 342.50
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*Chartered Accountant certificate from Oswal Sunil & Company dated January 30, 2026

(ii) Progress in the objects –

CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

CIN-L67190MH1993PLC071691

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

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Sr. No	Item Head	Source of information / certifications considered by Monitoring Agency for preparation of report							Comments of the Board of Directors	Comments of the Board of Directors
			Amount as proposed in the Offer Document in Rs. Crore	Amount utilised in Rs. Crore			Total	Comments of the Monitoring Agency

				As at beginnin g of the quarter in Rs. Crore					Reasons for idle funds	Proposed course of action
						At the end	unutilised
					During the	of the	amount in
					quarter in Rs.	quarter in	Rs. crore
					Crore	Rs. Crore
1	Capital Expenditure	Chartered Accountant certificate*, Bank statements, Placement Document	75.00	32.31	3.74	36.05	38.95	During Q3FY26, the Company incurred an expense of Rs. 3.74 crore towards the purchase of equipment for manufacturing intermittently bonded optical fibre ribbons, for upgrading the flat ribbon line equipment, as part of its planned capital expenditure outlined in the issue objects. The entire amount of Rs. 3.74 crore was spent through reimbursements made from the Company’s CC account against the capital expenditure incurred.	No Comment s Received	No Comment s Received
2	Research and Development Expenditure	Chartered Accountant certificate*,Bank	85.00	85.00	-	85.00	-	Nil utilization for the quarter ended December 31,2025.	No Comment	No Comment s Received
CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691

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Sr. No Item Head Source of information / certifications considered by Monitoring Agency for preparation of report							Comments of the Board of Directors
	Amount as proposed in the Offer Document in Rs. Crore	Amount utilised in Rs. Crore			Total

		As at beginnin g of the quarter in Rs. Crore					Reasons for idle funds Proposed course of action
				At the end	unutilised	Comments of the
			During the	of the	amount in	Monitoring Agency
			quarter in Rs.	quarter in	Rs. crore
			Crore	Rs. Crore
statements, Placement Document							s Received
3 Repayment/ Prepayment of Short term borrowings Chartered Accountant certificate*, Bank statements, Placement Document	74.04	74.04	-	74.04	-	Nil utilization for the quarter ended December 31, 2025.	No Comment s Received No Comment s Received
4 Funding Working Capital requirement Chartered Accountant certificate*, Bank statements, Placement Document	75.00	75.00	-	75.00	-	Nil utilization for the quarter ended December 31, 2025.	No Comment s Received No Comment s Received
5 General Corporate Purposes Chartered Accountant certificate*, Bank statements, Placement Document	33.46	33.65^	-	33.65^	-	Nil utilization for the quarter ended December 31, 2025.	No Comment s Received No Comment s Received
Total	342.50	300.00	3.74	303.74^	38.95
CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691 *Chartered Accountant cer�fcate from Oswal Sunil & Company dated January 30, 2026

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^ As outlined in the placement document, the an�cipated expenses for the issue were projected at Rs. 9.50 crore. However, the expenses incurred as of December 31, 2023, amounted to Rs. 9.31 crore. The remaining Rs. 0.19 crore, ini�ally held in escrow, was transferred to the monitoring account in Q3FY24. Subsequently, the Company u�lized this sum as GCP during the quarter ended March 31, 2024, in accordance with the placement document .

(iii) Deployment of unu�lized proceeds:

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Type of instrument and name of Return on Market Value as at the
Sr. No. Amount invested Maturity date Earning
the en�ty invested in Investment (%) end of quarter
Monitoring Account, State Bank of
1. 38.95 NA NA NA NA
India
Total 38.95
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At the end of Q2FY26 the unu�lized proceeds amoun�ng to Rs. 42.68 crores were parked in FDs. In November 2025 two FDs of Company amoun�ng to Rs. 15 crore were redeemed in its CC account, however Company created new FDs from its CC account in December 2025 and subsequently Company had redeemed the same in the monitoring account of the Company.

(iv) Delay in implementation of the object(s) –

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Objects Comple�on Date Delay (no. of days/ months) Comments of the Board of Directors As per the Placement document Actual Reason of delay Proposed course of ac�on	Objects Comple�on Date Delay (no. of days/ months) Comments of the Board of Directors As per the Placement document Actual Reason of delay Proposed course of ac�on	Objects Comple�on Date Delay (no. of days/ months) Comments of the Board of Directors As per the Placement document Actual Reason of delay Proposed course of ac�on	Objects Comple�on Date Delay (no. of days/ months) Comments of the Board of Directors As per the Placement document Actual Reason of delay Proposed course of ac�on	Objects Comple�on Date Delay (no. of days/ months) Comments of the Board of Directors As per the Placement document Actual Reason of delay Proposed course of ac�on	Objects Comple�on Date Delay (no. of days/ months) Comments of the Board of Directors As per the Placement document Actual Reason of delay Proposed course of ac�on
Capital Expenditure	Rs 75.00 Cr by 31st July 2025	In Progress, Rs. 36.05 Cr incurred �ll Q3FY26	Delay (Exact number of days of delay not ascertainable), Refer Note 1 below	The delay was primarily due to changes in the economic and geo- poli�cal landscape, which adversely impacted market condi�ons for op�cal fbre cables. Consequently, the company undertook capital expenditure at a	The Board at its mee�ng held on July 25, 2025, approved an extension of the �meline for u�liza�on of the unu�lized amount up to March 31, 2026. The company does not an�cipate any impact on the cost or viability of the projects.
CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000 CIN-L67190MH1993PLC071691	4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

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Comple�on Date Comments of the Board of Directors
Delay (no. of days/
Objects As per the Placement Proposed course of
Actual months) Reason of delay
document ac�on
slower pace,
resul�ng in part of
the allocated funds
towards capital
expenditure
remaining
unu�lized as of July
31, 2025, as per the
�meline specified in
the offer document.
The Board at its
mee�ng held on
July 25, 2025,
approved an
extension of the
�meline for
u�liza�on of the
unu�lized amount
up to March 31,
2026.
Rs. 85.00 Cr by September No Comments No Comments
Research and Development Expenditure Rs. 85.00 Cr by May 2026 No Delays
2024 Received Received
Repayment/Prepayment of Short-term Rs. 74.04 Cr by September No Comments No Comments
Rs. 74.04 Cr by July 2025 No Delays
borrowings 2023 Received Received
Rs. 75.00 Cr by September No Comments No Comments
Funding Working Capital requirements Rs. 75.00 Cr by Fiscal 2024 No Delays
2023 Received Received
Rs. 33.46 Cr From �me to Rs. 33.65^ Cr by March No Comments No Comments
General corporate purposes No Delays
�me 2024 Received Received
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Note 1: Funds incurred towards capital expenditure up to Q2FY26 were lower than the amount specified in the placement document. According to the Company’s management, the lower utilization was primarily due to changes in the economic and geo-political environment, which adversely impacted market conditions for optical fiber cables. Consequently, the

CARE Ratings Limited

9th floor, C-001/A2, Berger Towers, Sector 16B, Noida,

Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

CIN-L67190MH1993PLC071691

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company undertook capital expenditure at a slower pace, resulting in part of the allocated funds towards capital expenditure remaining unutilized as of July 31, 2025, as per the timeline specified in the offer document. The Company, in its Board meeting held on July 25, 2025, approved an extension of the timeline for utilization of the unutilized amount up to March 31, 2026 .

^ As outlined in the placement document, the anticipated expenses for the issue were projected at Rs. 9.50 crore. However, the expenses incurred as of December 31, 2023, amounted to Rs. 9.31 crore. The remaining Rs. 0.19 crore, initially held in escrow, was transferred to the monitoring account in Q3FY24. Subsequently, the Company utilized this sum as GCP during the quarter ended March 31, 2024, in accordance with the placement document .

CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

CIN-L67190MH1993PLC071691

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

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5) Details of u�liza�on of proceeds stated as General Corporate Purpose (GCP)

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Source of informa�on / cer�fica�ons
Amount Comments of the Board of
Sr. No Item Head^ considered by Monitoring Agency for Comments of Monitoring Agency
in Rs. Crore Directors
prepara�on of report
Nil u�liza�on for the quarter ended
- - - - No Comments Received
December 31, 2025.
Total 33.46
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^

ini�a�ves including marke�ng & branding expenses, acquiring fixed assets (other than those men�oned as part of capital expenditure), mee�ng any expense of our Company, including salaries and wages, rent, administra�on, insurance, repairs and maintenance, payment of taxes and du�es, ESG / renewable energy, mee�ng expenses incurred in the ordinary course of business and towards any exigencies.

Accordingly, Company has expensed the GCP over ongoing general corporate expenses. The allocated amount of Rs. 33.46 cr and balance Rs. 0.19 crores of issue expenses were already expensed as per object of issue.

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Disclaimers to MA report:

a) This Report is prepared by CARE Ra�ngs Ltd (hereina�er referred to as “Monitoring Agency/MA” ). The MA has taken utmost care to ensure accuracy and objec�vity while developing this Report based on the informa�on provided by the Issuer and informa�on obtained from sources believed by it to be accurate and reliable. The views and opinions expressed herein do not cons�tute the opinion of MA to deal in any security of the Issuer in any manner whatsoever.

b) This Report has to be seen in its en�rety; the selec�ve review of por�ons of the Report may lead to inaccurate assessments. For the purpose of this Report, MA has relied upon the informa�on provided by the management /officials/ consultants of the Issuer and third-party sources like statutory auditor/internal auditor which is peer reviewed audit firm/peer reviewed audit firm appointed by the Issuer believed by it to be accurate and reliable. c) Nothing contained in this Report is capable or intended to create any legally binding obliga�ons on the MA which accepts no responsibility, whatsoever, for loss or damage from the use of the said informa�on. The MA is also not responsible for any errors in transmission and specifically states that it, or its directors, employees do not have any financial liabili�es whatsoever to the users of this Report.

extent defined under Sec�on 2(38) of the Companies Act, 2013. While the MA has obtained informa�on from sources it believes to be reliable, it does not perform an audit and undertakes no independent verifica�on of any informa�on/ cer�fica�ons/ statements it receives from statutory auditors/internal auditor which is peer reviewed audit firm/peer reviewed audit firm (or from peer reviewed CA firms), lawyers, chartered engineers or other experts, and relies on in its reports.

As an example, the MA may rate the issuer or any debt instruments / facili�es issued or proposed to be issued by the issuer that is subject ma�er of this report. The MA may receive separate compensa�on for its ra�ngs and certain credit-related analyses, normally from issuers or underwriters of the instruments, facili�es, securi�es or from obligors.

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CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] , www.careedge.in

CIN-L67190MH1993PLC071691

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No. CARE/NRO/GEN/2025-26/1163

Monitoring Agency Report

The Board of Directors HFCL Limited

8, Commercial Complex, Masjid Moth, Greater Kailash – II, New Delhi – 110048, India

February 03, 2026

Dear Sir/Ma’am,

Monitoring Agency Report for the quarter ended December 31, 2025 - in rela�on to the Qualifed Ins�tu�ons Placement of Equity Shares of HFCL Limited (“the Company”)

aggrega�ng to Rs. 550.00 crore of the Company and refer to our du�es cast under 173A of the Securi�es & Exchange Board of India (Issue of Capital & Disclosure Requirements) Regula�ons.

In this connec�on, we are enclosing the Monitoring Agency Report for the quarter ended December 31, 2025 as per aforesaid SEBI Regula�ons and Monitoring Agency Agreement dated December 22, 2025.

Request you to kindly take the same on records.

Thanking you, Yours faithfully,

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Sahil Goyal Assistant Director [email protected]

CARE Ratings Limited

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9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

CIN-L67190MH1993PLC071691

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Report of the Monitoring Agency

Name of the issuer: HFCL Limited For quarter ended: December 31, 2025 Name of the Monitoring Agency: CARE Ratings Limited

(a) Deviation from the objects: Nil

(b) Range of Deviation: Not Applicable

Declaration:

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Signature:

Name and designation of the Authorized Signatory: Sahil Goyal Designation of Authorized person/Signing Authority: Assistant Director

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CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

CIN-L67190MH1993PLC071691

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1) Issuer Details:

Name of the issuer : HFCL Limited Name of the promoter : Mr. Mahendra Nahata Industry/sector to which it belongs : Telecommunica�ons - Telecom Equipment & accessories

2) Issue Details

Issue Period : December 22, 2025 to December 24, 2025 Type of issue (public/rights) : Private Placement Type of specified securi�es : Equity Shares IPO Grading, if any : Not applicable Issue size (in crore) : Rs. 550.00 crore

3) Details of the arrangement made to ensure the monitoring of issue proceeds:

Par�culars	Reply	Source of informa�on / cer�fca�ons considered by Monitoring Agency for prepara�on of report	Comments of the Monitoring Agency	Comments of the Board of Directors
Whether all u�liza�on is as per the disclosures in the Ofer Document?	Yes	Chartered Accountant cer�fcate*, Bank statement and Placement Document, Management Cer�fcate	During Q3FY26 Company u�lized Rs. 399.39 crores towards the objects of the issue as per the ofer document. Refer Note 1	No Comments Received
Whether shareholder approval has been obtained in case of material devia�ons# from expenditures disclosed in the Ofer Document?	Not applicable	Not applicable	Not applicable	No Comments Received
Whether the means of fnance for the disclosed objects of the issue have changed?	No	Management Cer�fcate	Nil	No Comments Received
Is there any major devia�on observed over the earlier monitoringagencyreports?	Not Applicable	CA Cer�fcate*, Bank Statements	This is the frst monitoring agency report	No Comments Received
CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691

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Source of informa�on / cer�fica�ons Comments of the
Comments of the
Par�culars Reply considered by Monitoring Agency for Board of
Monitoring Agency
prepara�on of report Directors
Whether all Government/statutory approvals related to the No Comments
Yes Management Cer�ficate Nil
object(s) have been obtained? Received
Whether all arrangements pertaining to technical No Comments
Yes Management Cer�ficate Nil
assistance/collabora�on are in opera�on? Received
Are there any favorable/unfavorable events affec�ng the Nil No Comments
No Management Cer�ficate
viability of these object(s)? Received
Is there any other relevant informa�on that may materially No Comments
No Quarterly Results, Management cer�ficate
affect the decision making of the investors? Received
----- End of picture text -----**

a) Devia�on in the objects or purposes for which the funds have been raised

Note 1: During the previous quarter, the Company transferred the issue proceeds from the monitoring account into its CC account. Consequently, in Q3FY26, certain objects were met through u�liza�on from the CC account. Owing to various transac�ons par�cularly pertaining to capital expenditure, research and development and GCP from CC, there has been comingling of funds (where issue proceeds were mixed with other cash flows), which restricted our ability to directly ascertain them. Further, it also created certain fixed deposits with varied maturity dates out of its CC account. However, we have reviewed and verified the transac�ons through Management Cer�ficate and CA cer�ficate.

** In H1FY26 Company reported TOI of Rs. 1914.36 crores (H1FY25: Rs. 2251.85 crores) witnessing a decline by ~15% y-o-y and PBILDT declined to ~ Rs. 219 crores (H1FY25: Rs. 333.11 crores). The same was due to subdued performance during Q1FY26 during which the Company’s TOI moderated at Rs. 871 crore, reduc�on of ~25% on a Y-o-Y basis. Accordingly, profitability margins of the Company remain moderate at 3.26% in Q1FY26. However, demand of OFC’s witnessed improvement in Q2FY26 as Company reported improvement in its profitability with PBILDT at Rs. 190.33 crores (Q2FY26: 158.22 crores), TOI stood at Rs. 1043.34 crores (Q2FY25: Rs. 1093.61). Consequently, PBILDT margins improved at 18.24% in Q2FY26 as against 14.47% in Q2FY25.

4) Details of objects to be monitored:

CARE Ratings Limited

9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

CIN-L67190MH1993PLC071691

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

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(i) Cost of objects –

Sr. No Item Head Source of information / certifications considered by Monitoring Agency for preparation of report	Original cost (as per the Offer Document) in Rs. Crore	Revised Cost in Rs. Crore Comments of the Monitoring Agency	Comments of the Board of Directors
			Reason for cost revision Proposed financing option Particulars of - firm arrangements made
1 Capital expenditure towards purchase of Plant and Machinery: Expansion of Optical Fibre Cable Chartered Accountant certificate*, Bank statement and Placement Document	35.00	NA NA	No Comments Received No Comments Received No Comments Received
2 Funding expenditure towards Research and Development initiatives including acquisition of technologies Chartered Accountant certificate*, Bank statement and Placement Document	50.00	NA NA	No Comments Received No Comments Received No Comments Received
3 Repayment/prepayment of our long term / short term borrowings availed from banks /others Chartered Accountant certificate*, Bank statement and Placement Document	105.00	NA NA	No Comments Received No Comments Received No Comments Received
4 Funding our long term working capital requirements Chartered Accountant certificate*, Bank statement and Placement Document	260.00	NA NA	No Comments Received No Comments Received No Comments Received
5 General Corporate Purposes Chartered Accountant certificate*, Bank statement and Placement Document	93.00	NA NA	No Comments Received No Comments Received No Comments Received
6 Issue Expenses Chartered Accountant certificate*, Bank statement and Placement Document	7.00	NA NA	No Comments Received No Comments Received No Comments Received
Total	550.00
CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691 *Chartered Accountant cer�fcate from Oswal Sunil & Company dated January 30, 2026 (ii)Progress in the objects –

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Sr. No	Item Head	Source of information / certifications considered by Monitoring Agency for preparation of report							Comments of the Board of Directors	Comments of the Board of Directors
			Amount as proposed in the Offer Document in Rs. Crore	Amount utilised in Rs. Crore			Total	Comments of the Monitoring Agency

				As at beginnin g of the quarter in Rs. Crore					Reasons for idle funds	Proposed course of action
						At the end	unutilised
					During the	of the	amount in
					quarter in Rs.	quarter in	Rs. crore
					Crore	Rs. Crore
1	Capital expenditure towards purchase of Plant and Machinery: Expansion of Optical Fibre Cable	Chartered Accountant certificate*, Bank statement and Placement Document	35.00	0.00	1.68	1.68	33.32	During Q3FY26, Company has expensed Rs. 1.68 crore towards payment for purchase of ribbon bundling line which is as per the stated objects of the issue. Around Rs. 1.01 crores were paid from the CC account of the Company.	No Comment s Received	No Comment s Received
2	Funding expenditure towards Research and Development initiatives including acquisition of technologies	Chartered Accountant certificate*, Bank statement and Placement Document	50.00	0.00	1.25	1.25	48.75	During Q3FY26, Company has expensed Rs. 1.25 crore towards payment of design and service cost for RF testing which is as per the stated objects of the issue. The payment was made from the CC account of the Company	No Comment s Received	No Comment s Received
3	Repayment/prepayment of our long term / short	Chartered Accountant certificate*,Bank	105.00	0.00	85.00	85.00	20.00	During Q3FY26 Company has utilised Rs. 85.00 crores	No Comment	No Comment s Received
CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691

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Sr. No	Item Head	Source of information / certifications considered by Monitoring Agency for preparation of report							Comments of the Board of Directors	Comments of the Board of Directors
			Amount as proposed in the Offer Document in Rs. Crore	Amount utilised in Rs. Crore			Total	Comments of the Monitoring Agency

				As at beginnin g of the quarter in Rs. Crore					Reasons for idle funds	Proposed course of action
						At the end	unutilised
					During the	of the	amount in
					quarter in Rs.	quarter in	Rs. crore
					Crore	Rs. Crore
	term borrowings availed from banks / others	statement and Placement Document						towards repayment of borrowings from CSB Bank (Rs. 50.00 crores) and KLJ Resources Limited (Rs. 30.00 crores) which is as per the stated objects of the issue.	s Received
4	Funding our long term working capital requirements	Chartered Accountant certificate*, Bank statement and Placement Document	260.00	0.00	214.58	214.58	45.42	During Q3FY26 Company has utilised the Rs. 214.58 crores to fund its working capital requirement.	No Comment s Received	No Comment s Received
5	General Corporate Purposes	Chartered Accountant certificate*, Bank statement and Placement Document	93.00	0.00	90.25	90.25	2.75	During Q3FY26 Company has utilised Rs. 90.25 crores towards GCP the details of which have been given in the GCP table below. These amounts were incurred from the CC account of the Company.	No Comment s Received	No Comment s Received
CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691

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Source of Comments of the
Amount utilised in Rs. Crore
information / Board of Directors
Amount as
certifications As at Total
proposed
Sr. Item considered by beginnin At the end unutilised Comments of the
in the Offer During the Reasons Proposed
No Head Monitoring g of the of the amount in Monitoring Agency
Document in Rs. quarter in Rs. for idle course of
Agency for quarter quarter in Rs. crore
Crore Crore funds action
preparation of in Rs. Rs. Crore
report Crore
During Q3FY26
Company has utilised
Rs. 6.63 crores towards
payment of lead
Chartered
manager fees and other
Accountant No
issue related expenses. No
certificate, Bank Comment
6 Issue Expenses 7.00 0.00 6.63 6.63 0.37 Around Rs. 0.50 crore Comment
statement and s
were paid from the CC s Received
Placement Received
account of the
Document
Company and were
subsequently
reimbursed from the
MA Account.
Total 550.00 0.00 399.39 399.39 150.61
----- End of picture text -----*

(iii) Deployment of unu�lized proceeds:

Sr. No.	Type of instrument and name of the en�ty invested in	Amount invested	Maturity date	Earning	Return on Investment (%)	Market Value as at the end of quarter
1.	Escrow Account,State Bank of India	13.86	NA	NA	NA	NA
2.	MonitoringAccount,State Bank of India	91.33	NA	NA	NA	NA
3.	Fixed Deposit,State Bank of India(44779809337)	0.92	December 30,2026	NA	6.25%	NA
4.	Fixed Deposit,State Bank of India	2.50	December 29,2026	NA	6.25%	NA
CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691

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(44779274504)
Fixed Deposit, State Bank of India
5. 10.00 June 29, 2026 NA 5.60% NA
(44777528406)
Fixed Deposit, State Bank of India
6. 5.00 June 29, 2026 NA 5.60% NA
(44777685812)
Fixed Deposit, State Bank of India
7. 10.00 June 29, 2026 NA 5.60% NA
(44777660909)
Fixed Deposit, State Bank of India
8. 7.00 June 29, 2026 NA 5.60% NA
(44777684182)
Fixed Deposit, State Bank of India
9. 10.00 June 29, 2026 NA 5.60% NA
(44777659905)
Total 150.61
----- End of picture text -----

Note: Out of the total unu�lized proceeds of Rs. 150.61 crores around Rs. 45.42 crores which is parked in the form of FDs with SBI has been marked as lien against margins for LC for procurement of raw materials. These FDs were created out of the amounts transferred from the monitoring account into its CC account.

(iv) Delay in implementation of the object(s) –

Objects	Comple�on Date	Comple�on Date	Delay (no. of	Comments of the Board of Directors	Comments of the Board of Directors
	As per the ofer	Actual		Reason of delay Proposed course of ac�on
			days/ months)
	document

Capital expenditure towards purchase of Plant and Machinery: Expansion of Op�cal Fibre Cable	Fiscal 2027	Ongoing, Rs. 1.68 crores incurred �llQ3FY26	Not Applicable	No Comments Received No Comments Received
Funding expenditure towards Research and Development ini�a�ves including acquisi�on of technologies	Fiscal 2027	Ongoing, Rs. 1.25 crores incurred �ll Q3FY26	Not Applicable	No Comments Received No Comments Received
Repayment/prepayment of our long term / short term borrowings availed from banks/others Fiscal 2026		Ongoing, Rs. 85.00 crores incurred �llQ3FY26	Not Applicable	No Comments Received No Comments Received
Funding our long term working capital requirements	Fiscal 2026	Ongoing, Rs. 214.58 crores incurred �llQ3FY26	Not Applicable	No Comments Received No Comments Received
General Corporate Purposes	Fiscal 2026	Ongoing, Rs. 90.25 crores incurred �llQ3FY26	Not Applicable	No Comments Received	No Comments Received
CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691

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Objects	Comple�on Date	Comple�on Date	Delay (no. of	Comments of the Board of Directors	Comments of the Board of Directors
	As per the ofer	Actual		Reason of delay Proposed course of ac�on
			days/ months)
	document

Issue Expenses	NA	Ongoing, Rs. 6.63 crores incurred �llQ3FY26	Not Applicable	No Comments Received	No Comments Received

CARE Ratings Limited

9th floor, C-001/A2, Berger Towers, Sector 16B, Noida,

Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

CIN-L67190MH1993PLC071691

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in

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5) Details of u�liza�on of proceeds stated as General Corporate Purpose (GCP)

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----- Start of picture text -----

Source of informa�on / cer�fica�ons
Amount
Sr. No Item Head^ considered by Monitoring Agency for Comments of Monitoring Agency Comments of the Board of Directors
in Rs. Crore
prepara�on of report
Payment for Business
1 45.00
Development During Q3FY26 Company incurred Rs.
Payment for Land 90.25 crores towards business
2 13.15
acquisi�on Chartered Accountant cer�ficate, Bank development, acquiring fixed assets, No Comments Received
3 Salary Expenses 25.20 statement, and Placement Document payment of salary, du�es and
administra�on expenses which are
4 Custom Duty Payment 4.49 part of GCP.
5 Electricity Payment 2.42
Total 90.25
----- End of picture text -----*

^

“Our Company proposes to deploy the balance Net Proceeds, aggrega�ng to ₹ 93.00 crore, towards general corporate purposes as approved by our management from �me to �me, subject to such u�lisa�on not exceeding 25% of the Gross Proceeds, in compliance with applicable laws. The general corporate purposes for which we propose to u�lise Net Proceeds include mee�ng exigencies, including but not restricted towards strategic ini�a�ves, investments in subsidiaries of our Company, opening or se�ng up new offices, business development ini�a�ves including marke�ng & branding expenses, acquiring fixed assets (other than those men�oned as part of capital expenditure), mee�ng any expense of our Company, including salaries and wages, rent, administra�on, insurance, repairs and maintenance, payment of taxes and du�es, ESG / renewable energy, mee�ng expenses incurred in the ordinary course of business and towards any exigencies. In addi�on to the above, we may u�lise the Net Proceeds towards other expenditure considered expedient and as permissible under applicable law and approved by the Board of Directors or a duly cons�tuted commi�ee thereof. The Net Proceeds which are proposed to be deployed towards these purposes are not proposed to be u�lized towards any specific project. Accordingly, the requirement to disclose (i) the break-up of cost of the project (ii) means of financing such project, and (iii) proposed deployment status of the proceeds at each stage of the project, is not applicable in respect of the aforemen�oned. If the Net Proceeds are not completely u�lised for the purposes stated hereinabove by such periods due to factors such as (i) economic and business condi�ons; (ii) increased compe��on; (iii) delay in construc�on or procuring equipment; (iv) receiving the necessary approvals; and (v) other commercial considera�ons, the same would be u�lised (in part or full) in the subsequent periods as may be decided by our Board, in accordance with applicable laws. Further, the Board may at its discre�on, u�lise any unu�lised por�on of Net Proceeds towards general corporate purposes within permissible limits.”

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Disclaimers to MA report:

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CARE Ratings Limited 9th floor, C-001/A2, Berger Towers, Sector 16B, Noida, Gautam Budh Nagar, Uttar Pradesh -201301 Phone: +91-120-4452000

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-22-6754 3456 Email: [email protected] , www.careedge.in

CIN-L67190MH1993PLC071691

AI assistant

HFCL LIMITED Capital/Financing Update 2026

61636_rns_2026-02-03_4aebadb9-ab37-4168-8253-6f350912d4f3.pdf

Subject: Monitoring Agency Reports on the utilisation of proceeds raised through Qualified Institutions Placements for the Quarter ended December 31, 2025

No. CARE/NRO/GEN/2025-26/1161

Monitoring Agency Report

The Board of Directors HFCL Limited

Monitoring Agency Report for the quarter ended December 31, 2025 - in rela�on to the Qualifed Ins�tu�ons Placement of Equity Shares of HFCL Limited (“the Company”)

CARE Ratings Limited

Report of the Monitoring Agency

Declaration:

1) Issuer Details:

2) Issue Details

3) Details of the arrangement made to ensure the monitoring of issue proceeds:

4) Details of objects to be monitored:

CARE Ratings Limited

(iii) Deployment of unu�lized proceeds:

(iv) Delay in implementation of the object(s) –

5) Details of u�liza�on of proceeds stated as General Corporate Purpose (GCP)

^

Disclaimers to MA report:

No. CARE/NRO/GEN/2025-26/1163

Monitoring Agency Report

The Board of Directors HFCL Limited

Monitoring Agency Report for the quarter ended December 31, 2025 - in rela�on to the Qualifed Ins�tu�ons Placement of Equity Shares of HFCL Limited (“the Company”)

CARE Ratings Limited

Report of the Monitoring Agency

Declaration:

1) Issuer Details:

2) Issue Details

3) Details of the arrangement made to ensure the monitoring of issue proceeds:

4) Details of objects to be monitored:

CARE Ratings Limited

(iii) Deployment of unu�lized proceeds:

(iv) Delay in implementation of the object(s) –

CARE Ratings Limited

5) Details of u�liza�on of proceeds stated as General Corporate Purpose (GCP)

^

Disclaimers to MA report:

AI assistant

HFCL LIMITED — Capital/Financing Update 2026

61636_rns_2026-02-03_4aebadb9-ab37-4168-8253-6f350912d4f3.pdf

Subject: Monitoring Agency Reports on the utilisation of proceeds raised through Qualified Institutions Placements for the Quarter ended December 31, 2025

No. CARE/NRO/GEN/2025-26/1161

Monitoring Agency Report

The Board of Directors HFCL Limited

Monitoring Agency Report for the quarter ended December 31, 2025 - in rela�on to the Qualifed Ins�tu�ons Placement of Equity Shares of HFCL Limited (“the Company”)

CARE Ratings Limited

Report of the Monitoring Agency

Declaration:

1) Issuer Details:

2) Issue Details

3) Details of the arrangement made to ensure the monitoring of issue proceeds:

4) Details of objects to be monitored:

CARE Ratings Limited

(iii) Deployment of unu�lized proceeds:

(iv) Delay in implementation of the object(s) –

5) Details of u�liza�on of proceeds stated as General Corporate Purpose (GCP)

^

Disclaimers to MA report:

No. CARE/NRO/GEN/2025-26/1163

Monitoring Agency Report

The Board of Directors HFCL Limited

Monitoring Agency Report for the quarter ended December 31, 2025 - in rela�on to the Qualifed Ins�tu�ons Placement of Equity Shares of HFCL Limited (“the Company”)

CARE Ratings Limited

Report of the Monitoring Agency

Declaration:

1) Issuer Details:

2) Issue Details

3) Details of the arrangement made to ensure the monitoring of issue proceeds:

4) Details of objects to be monitored:

CARE Ratings Limited

(iii) Deployment of unu�lized proceeds:

(iv) Delay in implementation of the object(s) –

CARE Ratings Limited

5) Details of u�liza�on of proceeds stated as General Corporate Purpose (GCP)

^

Disclaimers to MA report:

More from HFCL LIMITED

HFCL LIMITED Capital/Financing Update 2026