Sterlite Technologies share price movement

Sterlite Technologies (STL) share price hit a new high of ₹989.70, gaining 4 per cent on the BSE in Monday’s intraday deals amid heavy volume. 

In the past four trading days, the stock price of the telecom equipment & accessories company surged 20 per cent as the company’s wholly-owned subsidiary received a long-term supply agreement (LTSA). The total potential value of the contract over its tenure is estimated at ~$1.2 billion based on prevailing selling prices of connectivity products being supplied; STL said in an exchange filing.

The market price of STL zoomed 1,069 per cent from its calendar year (2026) low of ₹84.65 touched on January 27, 2026.

STL’s arm wins $1.2 billion contract

STL’s wholly-owned subsidiary received LTSA for supply of optical connectivity products as per customer specifications. The total potential value of the contract over its tenure is estimated at ~$1.2 billion and is to be executed up to December 2030.

As per the terms and conditions of the contract, the allocation of optical connectivity products to be supplied in each calendar year (CY) starts from CY26 to CY30. The purchase orders will be released periodically during the contract period. The agreement establishes a reciprocal risk sharing framework by defining mutual, capped financial liabilities for both parties in the event of demand or supply capacity shortfalls/ failures, STL said in an exchange filing.

STL overview, outlook

STL is a global leader in advanced connectivity solutions, providing end-to-end solutions for building AI-ready infrastructure, FTTx, Rural and Enterprise networks. With manufacturing facilities in North America, Europe and Asia, STL delivers its solutions in more than 100 countries. Hyperscalers, Neoclouds, Telecom operators, Internet service providers and large enterprises collaborate with STL to build their future-ready digital infrastructure.

According to Crisil Ratings, STL’s business risk profile is expected to improve structurally supported by qualification for supplying to data centres followed by the receipt of long-term orders. 

The results are already visible during the first quarter (April to June) of the financial year 2026-27 (Q1FY27), wherein revenue and operating Ebitda improved by 87 per cent and 192 per cent year-on-year (YoY) to ₹1,910 crore and ₹385 crore respectively. The significant improvement in operating performance is largely driven by the growing contribution from the data centre segment which accounted for 21 per cent of revenue in Q1FY27 compared to 1 per cent in FY26.

The data centre orders are also expected to generate higher profitability for the company as these products offer superior realisations and stronger margins due to higher complexity and technical capabilities required for manufacturing compared to traditional OFCs (optical fiber cables). Consequently, the improving share of the data centre segment is expected to support profitability in the medium term. Further, capacity utilization is expected to improve gradually over the medium term which shall support revenue growth and profitability over the medium term, said Crisil Ratings in its rating rationale.

Profitability is also supported by the reduction of tariff in the US to 10 per cent in February 2026 along with an increased proportion of sales to the US. The US market typically has higher realisations which supported the profitability. Supported by these drivers, the company is expected to report revenue of over ₹8,000 crore with profitability of over 20 per cent in FY27.

Any material increase in tariffs affecting profitability, margin compression due to improvement in global supply conditions, and slower-than-expected ramp-up of the data centre segment impacting overall margins will remain key monitorables, the rating agency said. ALSO READ: ITC jumps 3% as Citi upgrades rating, target. What prompted bullish view? Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.