<?xml version="1.0" encoding="UTF-8"?>
<!--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>2026-09-15</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>2026-09-15</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">2026-09-14</in-capmkt:DateOfBoardMeeting><in-capmkt:StartTimeOfTheMeeting contextRef="MainI">17:30:00</in-capmkt:StartTimeOfTheMeeting><in-capmkt:EndTimeOfTheMeeting contextRef="MainI">18:30:00</in-capmkt:EndTimeOfTheMeeting><in-capmkt:DateOfReport contextRef="MainI">2026-09-15</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">Current ongoing expansion resulting in capacity of -
Optical Fiber : 38.50 Mn fkm/p.a
Optical Fiber Cable : 56.36 Mn fkm/p.a.

Proposed  capacity addition -
Optical Fiber : 4.60 Mn fkm/p.a
Optical Fiber Cable : 5.64 Mn fkm/p.a.

Capacity after current ongoing and proposed expansion
Optical Fiber : 43.10 Mn fkm/p.a
Optical Fiber Cable : 62.00 Mn fkm/p.a.</in-capmkt:ProposedCapacityAdditionInProjectOrPlant><in-capmkt:PeriodWithinWhichCapacityIsToBeAdded contextRef="MainI">by July 2028</in-capmkt:PeriodWithinWhichCapacityIsToBeAdded><in-capmkt:InvestmentRequiredForProposedCapacityAddition contextRef="MainI" unitRef="INR" decimals="0">1500000000</in-capmkt:InvestmentRequiredForProposedCapacityAddition><in-capmkt:ModeOfFinancingForCapacityAddition contextRef="MainI">Combination of Internal Accruals &amp; Debts</in-capmkt:ModeOfFinancingForCapacityAddition><in-capmkt:RationaleForCapacityAddition contextRef="MainI">The proposed enhancement in Optical Fiber and Optical Fiber Cable manufacturing capacities, together with the establishment of a Preform Manufacturing Facility, is aligned with HFCL’s long-term growth strategy and is intended to strengthen the Company’s position as a leading integrated manufacturer of optical communication products.

The OF and OFC capacity expansion will enable the Company to cater to the increasing demand for optical connectivity solutions across domestic and international markets and meet requirements arising from its existing customer commitments, healthy order book and expanding business pipeline. The Company continues to witness sustained demand for OFC and connectivity products, providing strong visibility for future growth.

The proposed Preform Manufacturing Facility will further strengthen the Company’s backward integration capabilities by securing reliable access to a critical raw material for optical fiber production, enhancing supply chain resilience and reducing dependence on external suppliers. The facility is expected to support the Company’s ongoing and future capacity expansion plans of OF and OFC while contributing to improved cost efficiencies and margin enhancement.

Collectively, these investments will augment HFCL’s manufacturing capabilities, improve operational efficiencies and economies of scale, strengthen supply chain security, enhance export competitiveness and enable greater value creation through an integrated manufacturing platform. The proposed expansion is expected to support the Company’s sustainable long-term growth objectives and further reinforce its leadership position in the domestic market while strengthening its presence in international markets.</in-capmkt:RationaleForCapacityAddition></xbrli:xbrl>
