Sterlite Technologies Shares Hit 5% Upper Circuit After ₹3,000-Crore Capex Approval
Add Preferred News Source
Sterlite Technologies shares hit the 5% upper circuit after its board approved a ₹3,000-crore expansion plan, targeting ₹20,000 crore revenue by FY29 and higher optical connectivity capacity.
Sterlite Technologies shares were locked in a 5% upper circuit on the Bombay Stock Exchange (BSE) on Friday after the company announced a ₹3,000-crore capital expenditure plan and set a revenue target of ₹20,000 crore by FY29.
The company aims to become one of the top five global players in optical connectivity solutions. It also plans to expand its manufacturing capacity by around 50% as it prepares for higher demand for optical fibre cables and connectivity products.
At 2:20 pm, Sterlite Technologies shares stood at ₹750.15 apiece on BSE, up 5%.
Board Approves ₹3,000-Crore Expansion
Sterlite Technologies’ board approved the ₹3,000 crore capex plan at its meeting on Thursday. The expansion will cover its existing manufacturing facility and is expected to become operational by the end of FY29.
The company said its current capacity utilisation stands at around 70%. It has not disclosed its installed capacity, citing commercial sensitivity and competitive considerations.
Sterlite Technologies plans to fund the ₹3,000-crore investment through internal accruals and/or debt. Separately, the company plans to invest ₹1,000 crore every year for the next three financial years. The spending will support a 50% increase in preform, fibre and cable capacities.
The company will also allocate 2% of annual revenue towards technology development across multi-core fibre (MCF), hollow-core fibre (HCF) and co-packaged optics (CPO).
Optical Connectivity Drives Growth Plan
Sterlite Technologies identified expansion of total addressable market for optical connectivity, customer co-development, integrated connectivity solutions and technology-led differentiation as key growth drivers.
The company expects its expanded capacity to support the next phase of growth as demand for optical connectivity rises. The plan comes after a sharp improvement in its financial performance.
Sterlite Technologies reported its strongest quarterly performance in Q1FY27, supported by higher demand for optical connectivity products, growth in its data centre business and a record order book linked to artificial intelligence (AI)-ready digital infrastructure.
Revenue for the quarter ended 30 June rose 87% year-on-year to ₹1,910 crore from ₹1,019 crore in the same quarter the previous year. Sequential revenue increased 33% from ₹1,441 crore in Q4FY26. Profit after tax (PAT) surged 870% to ₹197 crore from ₹10 crore a year earlier. PAT stood at ₹59 crore in the March quarter.
Stock Gains Sharply In 2026
Sterlite Technologies has also seen a sharp rise in its share price. The stock has gained around 350% in the past six months and about 630% year-to-date. Foreign institutional investor holdings rose 6.75 percentage points to 18.22% in Q1FY27.
Also Read - LCC Projects IPO To Open 9 September With ₹427.1 Crore Issue
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
Right Tools, Rich Insights
