The multibagger stock has gained 745% so far in 2026, while rising over 21% in the past week and 36% in the last month.
The recent sharp surge in Sterlite Tech’s share price began after the company outlined its long-term growth plans, including a target of becoming one of the top five players globally in optical connectivity solutions and achieving revenue of Rs 20,000 crore by FY29.
Also read | HFCL, Sterlite Tech shares jump: What’s driving up to 705% multibagger run?
The company identified optical TAM expansion, customer co-development, integrated connectivity solutions and tech-led differentiation as key growth drivers. It also plans to expand its capacity to 1.5 times to support the next phase of growth.
The company has also approved a Rs 3,000 crore capital expenditure plan to expand capacity at its existing manufacturing facility. The proposed expansion will increase its existing installed manufacturing capacity by approximately 50%, with the additional capacity expected to be operational by the end of FY29.
Sterlite Tech Q1 performance
Earlier this year, Sterlite Tech reported its strongest quarterly performance in Q1 of the ongoing FY27, helped by higher demand for optical connectivity products, growth in its data centre business and a record order book linked to AI-ready digital infrastructure.The company reported revenue of Rs 1,910 crore for the June quarter, marking a whopping 87% YoY rise from Rs 1,019 crore reported in the same quarter last year. Sequentially, revenue rose 33% from Rs 1,441 crore reported in Q4 FY26. Profit after tax rose 870% to Rs 197 crore from Rs 10 crore a year earlier. In the March quarter, the company had reported PAT of Rs 59 crore.
EBITDA rose to Rs 397 crore, compared with Rs 140 crore in Q1 and Rs 218 crore in the previous quarter. EBITDA margin stood at 20.8%, the highest in nearly 20 quarters, helped by a better product mix, operating leverage and higher contribution from the data centre business.
Also read | Sterlite Tech targets Rs 20,000 crore revenue by FY29 amid booming AI demand
CLSA on Sterlite Tech share price
CLSA has an ‘Outperform’ rating for the shares of Sterlite Tech, with a target price of Rs 950 apiece, implying another 15% upside potential from the stock’s previous closing price of Rs 824.70 apiece on NSE.
The international brokerage last month noted the company’s order book surged 155% QoQ to Rs 18,600 crore, pointing to a strong growth outlook. Factoring in the company’s recent Rs 1,500 crore QIP fundraising and the significant Q1 FY27 beat, CLSA raised its forecasts by 7-125% for FY27-29CL. The brokerage now sees Sterlite Technologies delivering a 62% EBITDA CAGR.
Disclosure: “This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.”
