Sterlite Technologies shares hit a 5% upper circuit with shares locked at ₹787.65 on the NSE following the company's ambitious FY29 growth targets. The stock has been one of the best performers in the telecommunications sector, gaining 23.31% over the last month compared to a 3.64% gain in the BSE Telecommunication index. The broader telecom sector is also showing strength, with the BSE Telecommunication index up 1.29% to 3,722.84 and up 33.72% over the last year compared to the SENSEX's 5.28% fall. Among other telecom sector constituents, STL Networks Ltd increased 4.82% and HFCL Ltd added 4.11% on the day. The stock hit a record high of ₹787.65 on September 7, 2026, significantly above its 52-week low of ₹84.65 touched on January 27, 2026.
Broadband technology company Sterlite Technologies Ltd (STL) has approved a ₹3,000 crore capital expenditure plan to expand capacity at its existing manufacturing facility. According to Business Standard, the proposed capacity addition will increase the company's existing installed manufacturing capacity by approximately 50%. The expansion is expected to be completed by the end of financial year 2029 (FY29) to cater to anticipated global demand for optical fibre cables and connectivity business. The Board of Directors approved the capital commitment during their meeting on September 3, 2026, aimed at scaling existing manufacturing facilities. The board-approved capex is specifically aimed at ramping up optical fiber manufacturing facilities over the next three years to capture rising global demand for optical connectivity products driven by hyperscale AI and data center deployments. The investment will be funded through internal accruals and/or debt, with the company disclosing that existing capacity figures were not disclosed due to commercial sensitivity.
As part of its transformative growth strategy, Sterlite Technologies has unveiled 'Lakshya' - its growth ambition for FY29, targeting ₹20,000 crore revenue by FY29 while building STL into one of the largest global players for digital connectivity. According to the company's investor meet held on September 3, 2026, STL Managing Director Ankit Agarwal announced that the ambition aims to transform the scale and position of STL, build on the strength of the company's core, stronger economics, deeper customer relationships, and a larger role in the world's rapidly expanding digital infrastructure. The company is capitalizing on the dramatic increase in optical connectivity requirements driven by AI infrastructure evolution, with Hopper requiring roughly 4,000 fibers per AC, Blackwell increasing to around 16,000 fibers per AC, and the latest VERA Rubin looking at roughly 64,000 fibers per rack - representing a 64x increase in fiber content per rack in just a few generations of VR infrastructure.
The capacity expansion comes on the back of Sterlite Technologies' strongest-ever quarterly performance for the first quarter of FY27. As reported by Business Standard, the company's consolidated net profit surged 1,870% year-on-year to ₹197 crore from ₹10 crore a year ago, representing a nearly 20-fold increase. Revenue from operations jumped 87.4% year-on-year to ₹1,910 crore from ₹1,019 crore, while EBITDA climbed to an all-time high of ₹397 crore, up about 184% from the year-ago quarter. The company's EBITDA margin expanded to 20.8% from 13.7%, an improvement of 710 basis points year-on-year. According to Business Standard, STL posted consolidated revenue from operations of ₹4,745 crore in the financial year 2025-26, providing a strong foundation for the ambitious growth targets. The company has identified significant opportunities in India's data center market, with India currently having approximately 1.5 GW of data center capacity expected to increase to 10 gigawatts by 2030, supported by favorable environment policy including tax holiday to 2047 and strong power availability.
According to Business Standard, Sterlite Technologies' open order book stood at over $2 billion at the end of the quarter, providing strong revenue visibility. During the quarter, the company completed a ₹1,500 crore Qualified Institutional Placement (QIP) that enabled it to become net debt-free while providing capital for its next phase of growth. Among key order wins, the company secured a multi-year contract worth $1.11 billion (more than ₹10,000 crore) to supply optical connectivity products for next-generation artificial intelligence (AI) data centres. The company has also secured a $288 million supply agreement signed on August 29, 2026, with a leading global hyperscaler to supply high-density optical fiber cables over CY27-CY29, with execution and progressive revenue recognition starting in CY27. The contract can be extended by two years with mutual consent. International brokerage CLSA has upgraded the stock to Outperform with a target price of ₹950, citing the company's order book surge of 155% quarter-on-quarter to ₹18,600 crore, pointing to a strong growth outlook.
As reported by Business Standard, the company's current capacity utilization stands at approximately 70%, indicating significant room for expansion. The proposed investment of around ₹3,000 crore will be financed through internal accruals and/or debt, with the company disclosing that existing capacity figures were not disclosed due to commercial sensitivity. The new capacity addition will be funded through internal accruals and debt, strengthening operational scale without diluting equity. Shares of Sterlite Technologies Ltd ended at ₹714.45, up by ₹0.60, on the BSE following the announcement. The company has experienced multiple positive developments over the past 90 days, including a credit rating upgrade to Crisil AA/Stable from Crisil AA-/Stable on September 2, 2026, on improved business risk. The financial risk profile has been substantially strengthened after raising ₹1,500 crore via a QIP in July 2026, facilitating the credit rating upgrade and providing a well-timed, aggressive play to dominate the international optical connectivity market. STL claims to have approximately 9 per cent of the global optical fiber market outside China, supported by a technology portfolio of over 785 patents, and more than 10 advanced manufacturing facilities across key markets.
