Sterlite Technologies shares rallied 5% following the announcement of exceptional second-quarter results, marking a significant turnaround from earlier declines. According to reports from LiveMint, the stock had been locked in a 5% lower circuit at ₹827.60 on Friday, October 30, extending losses to a third consecutive session. The recent decline followed a 14% rally over three sessions, suggesting that investors may have been booking profits after the stock's strong run-up. Post-earnings announcement, the stock has demonstrated strong momentum with brokerages maintaining positive outlooks.
The company delivered exceptional second-quarter results with net profit of ₹517 crore compared with ₹4 crore a year earlier. As reported by LiveMint, revenue from operations surged 145% year-on-year to a record ₹2,529 crore from ₹1,034 crore. EBITDA rose sharply to ₹846 crore from ₹141 crore in the year-ago quarter, with the profit also benefiting from a one-time tariff refund gain. The company's open order book reached a record ₹35,274 crore at the end of September, while it reported a net debt-free balance sheet during the quarter.
Among its major contracts was a multi-year agreement worth $1.2 billion, or approximately ₹11,500 crore, with a US hyperscaler for optical connectivity products between 2026 and 2030. According to LiveMint, other agreements included a $1.11 billion product award letter from another hyperscaler and contracts with telecom operators. The company attributed its performance to demand for AI-ready digital infrastructure, optical connectivity products and data-centre networks.
Post-earnings announcement, CLSA and Nomura reiterated their bullish stance on Sterlite Technologies, with brokerages maintaining positive outlooks on the stock. As reported by LiveMint, Nomura has maintained its Buy rating on Sterlite Technologies with a target price of ₹1,350, citing improving product mix and rising data-centre exposure as key factors supporting its outlook. The positive sentiment reflects the company's strong financial performance and robust order book position.
The company raised its FY29 EBITDA margin guidance to 30% or more from 27% or more earlier, while retaining its FY29 revenue target of ₹200 billion under its Lakshya 2029 programme. According to LiveMint, Nomura increased its FY27 and FY28 earnings-per-share estimates by 12% and 6% respectively, while flagging risks including a slowdown in AI data-centre capital expenditure and faster-than-expected industry capacity additions. The combination of strong fundamentals and positive brokerage sentiment suggests continued growth potential for the company.
