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<!--REG30 V1.0 (16-10-2025)-->
<xbrli:xbrl xmlns:in-capmkt="http://www.sebi.gov.in/xbrl/2025-08-31/in-capmkt" xmlns:in-capmkt-ent="http://www.sebi.gov.in/xbrl/Regulation_30_Restructuring/2025-08-31/in-capmkt/in-capmkt-ent" xmlns:in-capmkt-roles="http://www.sebi.gov.in/xbrl/Regulation_30_Restructuring/2025-08-31/in-capmkt-roles" xmlns:xbrldt="http://xbrl.org/2005/xbrldt" xmlns:nonnum="http://www.xbrl.org/dtr/type/non-numeric" 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.xbrl.org/2003/XLink"><link:schemaRef xlink:type="simple" xlink:href="in-capmkt-ent-2025-08-31.xsd"/><xbrli:context id="OneI"><xbrli:entity><xbrli:identifier scheme="http://www.sebi.gov.in/in-capmkt/ScripCode">500183</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:instant>2026-06-04</xbrli:instant></xbrli:period></xbrli:context><xbrli:context id="OneD"><xbrli:entity><xbrli:identifier scheme="http://www.sebi.gov.in/in-capmkt/ScripCode">500183</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:startDate>2026-06-04</xbrli:startDate><xbrli:endDate>2026-06-04</xbrli:endDate></xbrli:period></xbrli:context><xbrli:context id="D_SlumpSaleEntityOrDivision1"><xbrli:entity><xbrli:identifier scheme="http://www.sebi.gov.in/in-capmkt/ScripCode">500183</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:startDate>2026-06-04</xbrli:startDate><xbrli:endDate>2026-06-04</xbrli:endDate></xbrli:period><xbrli:scenario><xbrldi:typedMember 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contextRef="OneI">500183</in-capmkt:ScripCode><in-capmkt:NameOfTheCompany contextRef="OneI">HFCL LIMITED</in-capmkt:NameOfTheCompany><in-capmkt:NSESymbol contextRef="OneI">HFCL</in-capmkt:NSESymbol><in-capmkt:MSEISymbol contextRef="OneI">NOTLISTED</in-capmkt:MSEISymbol><in-capmkt:ISIN contextRef="OneI">INE548A01028</in-capmkt:ISIN><in-capmkt:TypeOfAnnouncementPertainingToRegulation30Restructuring contextRef="OneD">New</in-capmkt:TypeOfAnnouncementPertainingToRegulation30Restructuring><in-capmkt:TypeOfEventOfAnnouncementPertainingToRegulation30Restructuring contextRef="OneD">Slump Sale</in-capmkt:TypeOfEventOfAnnouncementPertainingToRegulation30Restructuring><in-capmkt:WhetherEventOrInformationDisclosedIsAnOutcomeOfBoardMeeting contextRef="OneD">true</in-capmkt:WhetherEventOrInformationDisclosedIsAnOutcomeOfBoardMeeting><in-capmkt:DateOfBoardMeeting contextRef="OneI">2026-06-03</in-capmkt:DateOfBoardMeeting><in-capmkt:EndTimeOfBoardMeeting contextRef="OneD">20:20:00</in-capmkt:EndTimeOfBoardMeeting><in-capmkt:DateOfReport contextRef="OneI">2026-06-04</in-capmkt:DateOfReport><in-capmkt:NameOfUnitOrDivisionOrSubsidiaryOfTheListedEntity contextRef="I_SlumpSaleEntityOrDivision1">Thermal Weapon Sights (“TWS”) Business</in-capmkt:NameOfUnitOrDivisionOrSubsidiaryOfTheListedEntity><in-capmkt:TypeOfUnitOrDivisionOrSubsidiaryOfTheListedEntity contextRef="D_SlumpSaleEntityOrDivision1">Others</in-capmkt:TypeOfUnitOrDivisionOrSubsidiaryOfTheListedEntity><in-capmkt:AreaOfBusinessOfTheSlumpSaleEntities contextRef="I_SlumpSaleEntityOrDivision1">The thermal weapon sights business (“TWS Business”) of HFCL Limited (the “Company”)</in-capmkt:AreaOfBusinessOfTheSlumpSaleEntities><in-capmkt:PreviousYearTurnoverOfUnitOrDivisionOrSubsidiaryOfTheListedEntity contextRef="D_SlumpSaleEntityOrDivision1" unitRef="INR" decimals="-5">6600000</in-capmkt:PreviousYearTurnoverOfUnitOrDivisionOrSubsidiaryOfTheListedEntity><in-capmkt:PreviousYearPercentageOfTurnoverOfUnitOrDivisionOrSubsidiaryOfTheListedEntity contextRef="D_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0.0001</in-capmkt:PreviousYearPercentageOfTurnoverOfUnitOrDivisionOrSubsidiaryOfTheListedEntity><in-capmkt:PreviousYearRevenueOfUnitOrDivisionOrSubsidiaryOfTheListedEntity contextRef="D_SlumpSaleEntityOrDivision1" unitRef="INR" decimals="-5">6600000</in-capmkt:PreviousYearRevenueOfUnitOrDivisionOrSubsidiaryOfTheListedEntity><in-capmkt:PreviousYearPercentageOfRevenueOfUnitOrDivisionOrSubsidiaryOfTheListedEntity contextRef="D_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0.0001</in-capmkt:PreviousYearPercentageOfRevenueOfUnitOrDivisionOrSubsidiaryOfTheListedEntity><in-capmkt:PreviousYearIncomeOfUnitOrDivisionOrSubsidiaryOfTheListedEntity contextRef="D_SlumpSaleEntityOrDivision1" unitRef="INR" decimals="-5">6600000</in-capmkt:PreviousYearIncomeOfUnitOrDivisionOrSubsidiaryOfTheListedEntity><in-capmkt:PreviousYearPercentageOfIncomeOfUnitOrDivisionOrSubsidiaryOfTheListedEntity contextRef="D_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0.0001</in-capmkt:PreviousYearPercentageOfIncomeOfUnitOrDivisionOrSubsidiaryOfTheListedEntity><in-capmkt:PreviousYearNetWorthOfUnitOrDivisionOrSubsidiaryOfTheListedEntity contextRef="D_SlumpSaleEntityOrDivision1" unitRef="INR" decimals="-5">212400000</in-capmkt:PreviousYearNetWorthOfUnitOrDivisionOrSubsidiaryOfTheListedEntity><in-capmkt:PreviousYearPercentageOfNetWorthOfUnitOrDivisionOrSubsidiaryOfTheListedEntity contextRef="D_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0.0043</in-capmkt:PreviousYearPercentageOfNetWorthOfUnitOrDivisionOrSubsidiaryOfTheListedEntity><in-capmkt:NumberOfSharesUnderPromoterAndPromoterGroupCategoryPreEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="shares" decimals="INF">0</in-capmkt:NumberOfSharesUnderPromoterAndPromoterGroupCategoryPreEvent><in-capmkt:PercentageOfSharesUnderPromoterAndPromoterGroupCategoryPreEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0</in-capmkt:PercentageOfSharesUnderPromoterAndPromoterGroupCategoryPreEvent><in-capmkt:NumberOfSharesUnderPublicCategoryPreEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="shares" decimals="INF">0</in-capmkt:NumberOfSharesUnderPublicCategoryPreEvent><in-capmkt:PercentageOfSharesUnderPublicCategoryPreEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0</in-capmkt:PercentageOfSharesUnderPublicCategoryPreEvent><in-capmkt:NumberOfSharesUnderOtherCategoryPreEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="shares" decimals="INF">0</in-capmkt:NumberOfSharesUnderOtherCategoryPreEvent><in-capmkt:PercentageOfSharesUnderOtherCategoryPreEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0</in-capmkt:PercentageOfSharesUnderOtherCategoryPreEvent><in-capmkt:TotalNumberOfSharesPreEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="shares" decimals="INF">0</in-capmkt:TotalNumberOfSharesPreEvent><in-capmkt:TotalPercentageOfSharesPreEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0</in-capmkt:TotalPercentageOfSharesPreEvent><in-capmkt:NumberOfSharesUnderPromoterAndPromoterGroupCategoryPostEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="shares" decimals="INF">0</in-capmkt:NumberOfSharesUnderPromoterAndPromoterGroupCategoryPostEvent><in-capmkt:PercentageOfSharesUnderPromoterAndPromoterGroupCategoryPostEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0</in-capmkt:PercentageOfSharesUnderPromoterAndPromoterGroupCategoryPostEvent><in-capmkt:NumberOfSharesUnderPublicCategoryPostEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="shares" decimals="INF">0</in-capmkt:NumberOfSharesUnderPublicCategoryPostEvent><in-capmkt:PercentageOfSharesUnderPublicCategoryPostEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0</in-capmkt:PercentageOfSharesUnderPublicCategoryPostEvent><in-capmkt:NumberOfSharesUnderOtherCategoryPostEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="shares" decimals="INF">0</in-capmkt:NumberOfSharesUnderOtherCategoryPostEvent><in-capmkt:PercentageOfSharesUnderOtherCategoryPostEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0</in-capmkt:PercentageOfSharesUnderOtherCategoryPostEvent><in-capmkt:TotalNumberOfSharesPostEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="shares" decimals="INF">0</in-capmkt:TotalNumberOfSharesPostEvent><in-capmkt:TotalPercentageOfSharesPostEvent contextRef="I_SlumpSaleEntityOrDivision1" unitRef="pure" decimals="INF">0</in-capmkt:TotalPercentageOfSharesPostEvent><in-capmkt:DateOnWhichTheAgreementForSaleHasBeenEnteredIntoForSlumpSaleEvent contextRef="OneI">2026-06-03</in-capmkt:DateOnWhichTheAgreementForSaleHasBeenEnteredIntoForSlumpSaleEvent><in-capmkt:TheExpectedDateOfCompletionOfSlumpSaleEvent contextRef="OneI">2026-12-31</in-capmkt:TheExpectedDateOfCompletionOfSlumpSaleEvent><in-capmkt:NatureOfConsiderationForSlumpSaleEvent contextRef="OneD">Cash</in-capmkt:NatureOfConsiderationForSlumpSaleEvent><in-capmkt:DetailsOfConsiderationForSlumpSaleEvent contextRef="OneI">The TWS Business is proposed to be transferred to HASPL as a going concern on a slump sale basis, i.e., without assigning any individual values to relevant assets and liabilities, subject to necessary approvals and customary condition precedents and in accordance with the Business Transfer Agreement. 

The value of such consideration including the relevant assets and after deducting the relevant liabilities, aggregates to a net amount of Rs.50 Crore. The aforesaid consideration shall be received on or before December 31, 2026, as per the terms and conditions set out under the Business Transfer Agreement.</in-capmkt:DetailsOfConsiderationForSlumpSaleEvent><in-capmkt:BriefDetailsOfBuyersSlumpSaleEvent contextRef="OneI">HFCL Advance Systems Private Limited (HASPL), currently a wholly-owned subsidiary of the Company.

HASPL is not a member of promoter and promoter group of the Company.</in-capmkt:BriefDetailsOfBuyersSlumpSaleEvent><in-capmkt:WhetherThePromoterOrPromoterGroupOrGroupCompaniesIncludingAssociateOrHoldingOrSubsidiaryOrDirectorOrKMPOrSMPAndItsRelativesHaveAnyInterestInTheEntityBeingSlumpSale contextRef="OneD">false</in-capmkt:WhetherThePromoterOrPromoterGroupOrGroupCompaniesIncludingAssociateOrHoldingOrSubsidiaryOrDirectorOrKMPOrSMPAndItsRelativesHaveAnyInterestInTheEntityBeingSlumpSale><in-capmkt:WhetherSlumpSaleEventWouldFallWithinRelatedPartyTransactions contextRef="OneD">true</in-capmkt:WhetherSlumpSaleEventWouldFallWithinRelatedPartyTransactions><in-capmkt:DateOfBoardMeetingInWhichRPTApprovalTakenForSlumpSaleEvent contextRef="OneI">2026-06-03</in-capmkt:DateOfBoardMeetingInWhichRPTApprovalTakenForSlumpSaleEvent><in-capmkt:DateOfAuditCommitteeMeetingInWhichRPTApprovalTakenForSlumpSaleEvent contextRef="OneI">2026-06-02</in-capmkt:DateOfAuditCommitteeMeetingInWhichRPTApprovalTakenForSlumpSaleEvent><in-capmkt:WhetherSlumpSaleEventRPTIsMaterial contextRef="OneD">false</in-capmkt:WhetherSlumpSaleEventRPTIsMaterial><in-capmkt:WhetherSlumpSaleEventIsDoneAtArmsLength contextRef="OneD">true</in-capmkt:WhetherSlumpSaleEventIsDoneAtArmsLength><in-capmkt:BriefDetailsOfChangeInShareholdingPatternOfAllEntitiesForSlumpSaleEvent contextRef="OneI">Not Applicable</in-capmkt:BriefDetailsOfChangeInShareholdingPatternOfAllEntitiesForSlumpSaleEvent><in-capmkt:AnyOtherBriefSignificantInformationForSlumpSaleEvent contextRef="OneI">The transfer of the TWS Business is part of the Company’s strategic initiative to consolidate its defence-related businesses under a dedicated platform, i.e., HASPL.

The transfer is aimed at achieving focused management, improved operational efficiencies, optimal resource allocation, and enhanced synergies within the defence vertical, while enabling the Company to strengthen its overall strategic positioning and effectively capitalise on growth opportunities in the sector, in line with its long-term business objectives.</in-capmkt:AnyOtherBriefSignificantInformationForSlumpSaleEvent></xbrli:xbrl>
