Broadband technology company Sterlite Technologies (STL) has secured a $220 million international supply agreement for high-density optical fibre cables from a leading global telecom infrastructure company, as confirmed in a regulatory filing. The stock surged 4.5% following the announcement, building on the previous rally that saw shares hit the upper circuit limit. The contract is scheduled for execution over three calendar years from CY27 to CY29, and follows the company's earlier ₹960 crore domestic supply agreement secured earlier this week. This international order represents another significant milestone for STL's global expansion, with the company clarifying that neither its promoter nor promoter-group entities have any interest in the awarding authority and the transaction does not qualify as a related-party transaction.
The latest international order, combined with the domestic contract, brings STL's total disclosed order book to ₹2,220 crore, providing coverage of 1.55 quarters of average quarterly revenue. The domestic contract is scheduled to be executed during FY28 and FY29, as reported by CNBC TV18, with the international order spanning a three-year period from CY27 to CY29. This framework deal operates on a periodic release basis, where specific purchase orders will be issued and delivered over the contract period rather than a single confirmed work order. The significant contract wins come after STL reported its strongest-ever quarterly performance for Q1FY27, with the company's strong presence in India's telecom supply chain supporting operators' expansion of high-speed data and broadband services. The deal comes as a significant boost to the company's global order book, strengthening its presence across key international markets as telecom operators and hyperscalers worldwide accelerate network rollouts.
The company's revenue momentum has strengthened significantly, with Q1FY27 revenue reaching ₹1,910 crore and EBITDA climbing to an all-time high of ₹397 crore, representing year-on-year growth of 87% and 184% respectively. The company posted a consolidated net profit of ₹197 crore in Q1FY27, compared with ₹10 crore a year earlier, while EBITDA margin expanded to 20.8%, the highest level in nearly 20 quarters. This marks a substantial improvement from Q3FY26, which saw a net loss of ₹17 crore and operating margin of just 8.35%. The margin expansion was further supported by a higher contribution from its data centre business, reflecting the company's growing alignment with the AI-led data centre buildout. Management has also raised its FY27 EBITDA margin guidance to 23%, up from its earlier target of 20%, citing higher capacity utilisation and improved optical connectivity demand.
At the end of the June quarter, STL's order book stood at a record ₹18,618 crore, as reported by CNBC TV18. The company completed a ₹1,500 crore Qualified Institutions Placement (QIP) during the quarter, which attracted participation from several prominent domestic and global institutional investors including Motilal Oswal, Nomura, HSBC, Bank of India, Oxbow, Think Investments, Bandhan, and Manulife. The QIP proceeds will be primarily used to significantly reduce debt, strengthening the balance sheet and providing a solid financial foundation to support the next phase of growth. The company's balance sheet shows a current ratio of 0.98x, with Total Liabilities/Equity at 1.80x, while operating cashflow was positive at ₹520 crore in FY26 and free cashflow stood at ₹327 crore in FY26.
The positive market response reflects investor confidence in STL's strong financial performance and major contract wins, with the stock jumping over 500% in 2026 and hitting a record high of ₹680 per share during the rally. In the first three trading sessions of August, the stock surged 14%, recovering all of the 9% decline recorded in July. After remaining largely range-bound for an extended period, investor interest picked up sharply in February, with the buying momentum continuing through June 2026. The sustained rally has lifted the stock's gains for calendar year 2026 to around 515%, putting it on track for its best annual performance since 2017, when it had rallied 204%. With a strong presence in India's telecom supply chain, STL supports operators' expansion of high-speed data and broadband services, positioning the firm as a key partner in the country's digital connectivity and 5G rollout initiatives.
