Sterlite Technologies Ltd. shares have surged more than 579% in 2026, helping transform a stock that once traded at Rs 3.1 into a company valued at about Rs 36,000 crore.
The rally has accelerated as AI data centres reshape the company's business, bringing larger orders, higher margins and greater revenue visibility.
Sterlite Technologies shares rose another 5% to Rs 698.85 apiece on the NSE on Aug. 27, from the previous close of Rs 662.75. The stock has gained more than 25% in the past month alone.
The company's shift towards AI data centre connectivity sits at the centre of the rerating. Strong June-quarter earnings, a record order book and an improved balance sheet have added support to the rally. The next test will be execution as Sterlite Technologies works through its expanding order pipeline.
Listed in 2000, the company made its stock market debut at Rs 107.49. It later fell to a low of Rs 3.1 in March 2003.
AI Data Centres Become A Growth Engine
A key reason behind the market's optimism around Sterlite Technologies is perhaps the rapid change in its business mix. Data centres contributed 21% of revenue in the June quarter, compared with just 1% in FY26. Management expects the combined Data Centre and Enterprise segment to account for as much as 50% of revenue in FY27, significantly above its earlier 30% guidance.
The company is also benefiting from a structural increase in fibre intensity as AI workloads move to higher-speed GPU architectures. Its Neuralis portfolio targets ultra-high-density AI data centre connectivity, while US Conec certification for its MMC pre-terminated solutions allows three times higher cabling density for 800G-plus applications.
Business Growth and Expanding Margins
The June quarter was a strong one for the company as revenue rose 87% year-on-year to Rs 1,910 crore, while Ebitda jumped 184% to Rs 397 crore.
Profit after tax stood at a record Rs 197 crore, and Ebitda margin improved to 20.8%.
Orders Provide Visibility Beyond The Rally
The strongest evidence supporting the stock's rerating is the order pipeline. The company secured orders worth Rs 13,100 crore in the June quarter itself, which is 1.7 times the total order intake of Rs 7,687 crore across FY26. This included a $1.11 billion, or more than Rs 10,000 crore, multi-year hyperscaler award for AI data centres and more than $100 million of Neuralis orders.
Its open order book subsequently reached a record Rs 18,618 crore, 2.4 times the previous quarter. Of this, Rs 2,228 crore was scheduled for execution in the September quarter and Rs 16,390 crore thereafter, giving the company substantial revenue visibility.
Coming to the improving margin of the company, management said data centre solutions carry higher margins than telecom, while better factory utilisation and a higher optical connectivity attach rate could further lift profitability. The attach rate rose to 16% from 15%, with the company targeting more than 20% from the September quarter and 25% by the end of FY27.
The balance sheet has also strengthened materially. A Rs 1,500 crore QIP helped Sterlite Tech become net debt-free, with Rs 483 crore of net cash, while institutional holding rose to a record 33%.
Together, the earnings acceleration, AI data centre opportunity, record order book, improving margins and stronger balance sheet explain why Sterlite Technologies has delivered such an extraordinary rally in 2026. The key test now is whether the company can execute this large order pipeline while sustaining the 23% Ebitda margin trajectory.
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