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<!--REG30PARAB V1.0 (01-06-2026)-->
<xbrli:xbrl xmlns:in-capmkt="http://www.sebi.gov.in/xbrl/2026-04-30/in-capmkt" xmlns:in-capmkt-ent="http://www.sebi.gov.in/xbrl/Regulation_30_Para_B_Of_Part_A_Of_Schedule_III/2026-04-30/in-capmkt/in-capmkt-ent" xmlns:xbrldt="http://xbrl.org/2005/xbrldt" xmlns:nonnum="http://www.xbrl.org/dtr/type/non-numeric" xmlns:in-capmkt-types="http://www.sebi.gov.in/xbrl/2026-04-30/in-capmkt-types" xmlns:link="http://www.xbrl.org/2003/linkbase" xmlns:net="http://www.xbrl.org/2009/role/net" xmlns:num="http://www.xbrl.org/dtr/type/numeric" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:iso4217="http://www.xbrl.org/2003/iso4217" xmlns:negated="http://www.xbrl.org/2009/role/negated" xmlns:xbrldi="http://xbrl.org/2006/xbrldi" xmlns:xbrli="http://www.xbrl.org/2003/instance" xmlns:xl="http://www.w3.org/1999/xlink"><link:schemaRef xlink:type="simple" xlink:href="in-capmkt-ent-2026-04-30.xsd"/><xbrli:context id="MainI"><xbrli:entity><xbrli:identifier scheme="http://www.sebi.gov.in/in-capmkt/ScripCode">500183</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:instant>2026-08-04</xbrli:instant></xbrli:period></xbrli:context><xbrli:context id="I_CapacityAddition"><xbrli:entity><xbrli:identifier scheme="http://www.sebi.gov.in/in-capmkt/ScripCode">500183</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:instant>2026-08-04</xbrli:instant></xbrli:period><xbrli:scenario><xbrldi:explicitMember dimension="in-capmkt:SubTypeOfEventAsPerRegulation30ParaBOfPartAOfScheduleIIIAxis">in-capmkt:CapacityAdditionMember</xbrldi:explicitMember></xbrli:scenario></xbrli:context><xbrli:unit id="INR"><xbrli:measure>iso4217:INR</xbrli:measure></xbrli:unit><in-capmkt:NSESymbol contextRef="MainI">HFCL</in-capmkt:NSESymbol><in-capmkt:NameOfTheCompany contextRef="MainI">HFCL LIMITED</in-capmkt:NameOfTheCompany><in-capmkt:ScripCode contextRef="MainI">500183</in-capmkt:ScripCode><in-capmkt:MSEISymbol contextRef="MainI">NOTLISTED</in-capmkt:MSEISymbol><in-capmkt:ISIN contextRef="MainI">INE548A01028</in-capmkt:ISIN><in-capmkt:TypeOfEventAsPerRegulation30ParaBOfPartAOfScheduleIII contextRef="MainI">Capacity addition/Product launch (Sub-para 3-Para B)</in-capmkt:TypeOfEventAsPerRegulation30ParaBOfPartAOfScheduleIII><in-capmkt:SubTypeOfEventAsPerRegulation30ParaBOfPartAOfScheduleIII contextRef="I_CapacityAddition">Capacity addition</in-capmkt:SubTypeOfEventAsPerRegulation30ParaBOfPartAOfScheduleIII><in-capmkt:TypeOfAnnouncementAsPerRegulation30ParaBOfPartAOfScheduleIII contextRef="MainI">New</in-capmkt:TypeOfAnnouncementAsPerRegulation30ParaBOfPartAOfScheduleIII><in-capmkt:WhetherEventOrInformationDisclosedIsAnOutcomeOfTheBoardMeeting contextRef="MainI">true</in-capmkt:WhetherEventOrInformationDisclosedIsAnOutcomeOfTheBoardMeeting><in-capmkt:DateOfBoardMeeting contextRef="MainI">2026-08-04</in-capmkt:DateOfBoardMeeting><in-capmkt:StartTimeOfTheMeeting contextRef="MainI">16:30:00</in-capmkt:StartTimeOfTheMeeting><in-capmkt:EndTimeOfTheMeeting contextRef="MainI">17:00:00</in-capmkt:EndTimeOfTheMeeting><in-capmkt:DateOfReport contextRef="MainI">2026-08-04</in-capmkt:DateOfReport><in-capmkt:ExistingCapacityOfProjectOrPlant contextRef="MainI">Optical Fibre- 28.0 Mn fkm p.a.
Optical Fiber Cable- 34.0 Mn fkm p.a.</in-capmkt:ExistingCapacityOfProjectOrPlant><in-capmkt:ExistingCapacityUtilizationByProjectOrPlant contextRef="MainI">Optical Fibre- 28.0 Mn fkm p.a.
Optical Fiber Cable- 34.0 Mn fkm p.a.</in-capmkt:ExistingCapacityUtilizationByProjectOrPlant><in-capmkt:ProposedCapacityAdditionInProjectOrPlant contextRef="MainI">Optical Fibre- 4.60 Mn fkm p.a.
Optical Fiber Cable- 14.0 Mn fkm p.a. 
The above proposed expansion is in addition to the ongoing expansion programme currently underway, pursuant to which the Company’s  OF manufacturing capacity is being enhanced from 28.0 Mn fkm per annum to 33.90 Mn fkm per annum and its OFC manufacturing capacity from 34.0 Mn fkm per annum to 42.36 Mn fkm per annum. 
The Board at its meeting held on August 04, 2026 has now approved an additional capacity expansion of 4.60 Mn fkm per annum in OF and 14.0 Mn fkm per annum in OFC capacities, which will take the Company's total OF manufacturing capacity to 38.50 Mn fkm per annum and OFC manufacturing capacity to 56.36 Mn fkm per annum upon completion of these expansion programmes.</in-capmkt:ProposedCapacityAdditionInProjectOrPlant><in-capmkt:PeriodWithinWhichCapacityIsToBeAdded contextRef="MainI">Expected to be completed by July 2028</in-capmkt:PeriodWithinWhichCapacityIsToBeAdded><in-capmkt:InvestmentRequiredForProposedCapacityAddition contextRef="MainI" unitRef="INR" decimals="0">4000000000</in-capmkt:InvestmentRequiredForProposedCapacityAddition><in-capmkt:ModeOfFinancingForCapacityAddition contextRef="MainI">Combination of Internal Accruals &amp; Debts</in-capmkt:ModeOfFinancingForCapacityAddition><in-capmkt:RationaleForCapacityAddition contextRef="MainI">The proposed expansion is intended to enable the Company to cater to the increasing demand for OFC and optical connectivity products across domestic and international markets and address the requirements arising from its existing customer commitments, healthy order book and expanding business pipeline. The Company is witnessing sustained customer demand for OFC and connectivity products and continued engagement with existing and prospective customers across key geographies, providing strong visibility for future growth. The proposed capacity expansion will strengthen HFCL's manufacturing capabilities, enhance its ability to execute current and future orders, improve operational efficiencies and economies of scale, strengthen supply chain resilience and support its export growth strategy. The expansion will also enable the Company to derive greater value from its integrated manufacturing platform and backward integration initiatives, while further reinforcing its position as a leading global manufacturer of optical communication products.</in-capmkt:RationaleForCapacityAddition></xbrli:xbrl>