Sterlite Technologies shares jumped 5% to hit an all-time high of ₹757.70 on Monday, August 31, as the company secured fresh orders. According to latest NSE data, at 10:45 AM, the stock was trading at ₹729.4 apiece, rising 0.78%. The optical fibre cable maker's shares have demonstrated exceptional momentum, skyrocketing nearly 700% from the beginning of the year, soaring 30% over the past month, and zooming 321% over a six-month period. As per NDTV Profit, the company has transformed from a stock that once traded at ₹3.1 in March 2003 to a company valued at about ₹36,000 crore, with total market capitalization reaching ₹37,268.84 crore as of August 31, 2026.
The stock surge was triggered by STL's announcement of a long-term contract worth approximately ₹2,700 crore with a leading hyperscaler. The agreement involves the allocation of high-density optical fibre cable products to be supplied according to customer specifications during each calendar year from 2027 to 2029. As per Business Standard, the contract will remain in force for three calendar years, from CY2027 to CY2029, and may be extended by a further two years with the mutual consent of both parties. The agreement also establishes a reciprocal risk-sharing framework, with capped financial liabilities for both parties in the event of demand shortfalls or supply-capacity shortages. The firm further stated that purchase orders will be released periodically during the contract period.
The company has benefited significantly from the US Supreme Court's decision to strike down import tariffs on February 20, which had previously impacted margins by 760 basis points. As reported by NDTV Profit, profit after tax stood at a record ₹197 crore, with Ebitda margin improving to 20.8% in Q1 FY27. The US market contributed 54% of the company's Q1FY27 revenue, up from 31% in Q1FY26, driven by soaring data centre demand. Management has guided for margin expansion from 15.1% in Q4FY26 to 23% by FY27-end, with the current Ebitda margin of 10.3% in Q3FY26 representing a significant improvement from previous tariff-impacted levels.
Foreign institutional investors have turned bullish, raising their stake to 19.7% in Q1FY27 from 10.9% in Q3FY26, demonstrating strong institutional confidence in the company's prospects. According to Nuvama Research, the company is expected to deliver 71% revenue growth in FY27 and 34% in FY28, though results for the next few quarters may appear strong due to FY26's low base following US tariff uncertainty. The current order book of around ₹20,000 crore, including the recent order, may suffice for the next couple of years, with the stock trading at an EV/EBITDA multiple of 16x based on Nuvama's FY28 estimates. However, this valuation appears rich considering the limited competitive moat in the commodity-nature optical fibre cable business.
In July 2026, STL successfully raised ₹1,500 crore through a qualified institutional placement (QIP) at ₹583.01 per share. As reported by NDTV Profit, the company has become net debt-free with ₹483 crore of net cash, while institutional holding has risen to a record 33%. The fundraising process involved participation from reputed domestic and global investors including Motilal Oswal, Nomura, HSBC, Bank of India, Oxbow, Think Investments, Bandhan, and Manulife. The company allotted 25.7 million equity shares to qualified institutional buyers, with proceeds primarily utilized to substantially de-leverage the balance sheet and enhance financial strength for future growth initiatives.
