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 reports from CNBC TV18, 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 capacity expansion comes on the back of Sterlite Technologies' strongest-ever quarterly performance for the first quarter of FY27. As reported by CNBC TV18, the company's net profit surged to ₹197 crore from ₹10 crore a year ago, representing a nearly 20-fold increase. Revenue rose 87% year-on-year to a record ₹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. The massive capital allocation of ₹3,000 crore signals that management sees structural, long-term demand rather than a cyclical uptick in global network deployment, with the company targeting sustained quarterly EBITDA margins in line with the revised full-year guidance of 23%.
According to CNBC TV18, Sterlite Technologies' open order book stood at ₹18,618 crore at the end of the quarter, the highest in its history. 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. This multi-year capex plan aligns with robust order book visibility, including the major hyperscaler deal, positioning the company as a key beneficiary of the prolonged global telecom and AI infrastructure boom.
As reported by CNBC TV18, 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, or 0.084%, 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.
