Up over 500% in 2026! This small-cap telecom stock to be in focus on Thursday after $210 million international order
Sterlite Technologies secured a $210 million international order for optical fibre cables, set for a three-year execution. This follows a major domestic supply agreement and recent fundraising efforts to reduce debt, enhancing the company’s strong financial position amid significant stock growth.
Shares of Sterlite Technologies, one of India's leading manufacturers of optical fibre and optical fibre cables, are likely to remain in focus in Thursday's trade, August 6, after the company secured another major international order.
In a regulatory filing on Wednesday, the company said it had secured an international order worth $210 million for the supply of high-density optical fibre cables.
While the company did not disclose the name of the customer, it said the order was awarded by a leading global telecom infrastructure company. The contract is scheduled to be executed over a three-year period.
Sterlite Technologies also clarified that neither its promoter nor promoter-group entities have any interest in the awarding authority and the transaction does not qualify as a related-party transaction.
This marks another significant order win for the company. On July 1, Sterlite Technologies secured a ₹960-crore multi-year supply agreement from a domestic telecom operator. The contract, spanning FY28 and FY29, is valid for an initial period of two years and can be extended by another two years through mutual agreement.
Earlier this week, the company announced that it had raised ₹1,500 crore through a Qualified Institutional Placement (QIP). The issue attracted participation from several prominent domestic and global institutional investors, including Motilal Oswal, Nomura, HSBC, Bank of India, Oxbow, Think Investments, Bandhan, and Manulife, among others.
The company said the QIP proceeds will be primarily used to significantly reduce debt, strengthening its balance sheet and providing a solid financial foundation to support the next phase of its growth.
Net profit jumps multi-fold in Q1
Sterlite Technologies reported a strong performance for the June quarter, posting its highest-ever quarterly revenue of ₹1,910 crore and EBITDA of ₹397 crore, representing year-on-year growth of 87% and 184%, respectively. Its order book stood at ₹18,618 crore at the end of the quarter.
The company also reported an EBITDA margin of 20.8% in Q1FY27, the highest level in nearly 20 quarters, driven by an improved product mix and operating leverage. Net profit jumped multi-fold to ₹197 crore.
Margin expansion was further supported by a higher contribution from its data centre business, reflecting the company's growing alignment with the AI-led data centre buildout.
During the quarter, Sterlite Technologies secured several major contracts, including a multi-year order worth $1.11 billion (around ₹10,000 crore) for the supply of optical connectivity products for next-generation AI data centres.
Shares jump over 500% in 2026
The company's shares have been trading higher in recent sessions, supported by a series of major order wins and a robust performance in the June quarter. In the first three trading sessions of August, the stock surged 14%, recovering all of the 9% decline recorded in July.
After remaining largely range-bound for an extended period, investor interest picked up sharply in February, with the buying momentum continuing through June 2026. The sustained rally propelled the stock nearly 540% higher in just six months, during which it also hit a record high of ₹680 per share.
The sharp rally has lifted the stock's gains for calendar year 2026 to around 515%, putting it on track for its best annual performance since 2017, when it had rallied 204%.
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