- Sterlite subsidiary secured over Rs 10,000 crore supply order from a US hyperscale partner
- The contract runs through FY29 for AI data centre optical connectivity products in the US
- CLSA raised Sterlite's target price 60% to Rs 655, maintaining an Outperform rating
Sterlite Technologies Ltd's shares are set to be in focus after the company's subsidiary secured a more than Rs 10,000 crore supply order from a US-based ‘hyperscale' partner, as per an exchange filing. The company said that the contract will run through FY29 and involve supplying optical connectivity products for artificial intelligence data centre infrastructure in the United States.
While Sterlite did not disclose the client's identity, the company said the products would support AI data centre buildouts for the hyperscaler.
The announcement prompted CLSA to sharply raise its target price on the stock by 60% to Rs 655 from Rs 405, while maintaining its Outperform rating. CLSA described the contract as a major validation for Sterlite's AI data centre optical products business and said the deal could drive a 49% EBITDA CAGR over the coming years.
CLSA on Sterlite Technologies
- CLSA maintains an Outperform rating on Sterlite Technologies and has sharply raised its target price to Rs 655 from Rs 405.
- The brokerage highlighted a major $1 billion order win from a US hyperscaler, calling it a significant validation for STL's AI data centre optical products business.
- CLSA believes the order positions the company to deliver a 49% EBITDA CAGR over the coming years.
- The brokerage also expects a multi-year data centre boom across North America and India to drive strong demand for optical networking products.
- Following the large deal win and improving outlook, CLSA has significantly increased its growth forecasts for the company.
Sterlite has increasingly positioned itself around high-capacity fibre and optical connectivity solutions as AI infrastructure spending accelerates globally. The company recently launched its Celesta IBR cable series featuring up to 6,912 fibres, aimed at large-scale AI and cloud infrastructure deployments.
Investor enthusiasm around the AI-linked opportunity has already driven a sharp rally in the stock. Shares of Sterlite Tech have surged more than 330% so far in 2026 and climbed over 544% in the past year, according to NSE data.
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