Rs 7,309 Crore Order Book: Optical Fibre Company Hits 5% Upper Circuit After Securing USD 1.11 Billion AI Data Centre Deal

On Monday, the Indian equity benchmarks traded higher during the morning session, with the benchmark Nifty 50 index rising 0.99 per cent to 23,954.60. Telecom and optical connectivity stocks remained in focus amid strong international order announcements linked to AI data centre infrastructure. In this segment, Sterlite Technologies share price hit the 5 per cent Upper Circuit during the morning session and were trading at Rs 463.20 after the company announced a multi-year supply agreement valued at around USD 1.11 billion for AI-ready data centre projects in the United States.

Sterlite Technologies Order Details

Sterlite Technologies Limited (STL) announced that one of its subsidiaries received a multi-year Product Award Letter (PAL) from a hyperscale partner for the supply of optical connectivity products. The total potential contract value over the agreement tenure is estimated at approximately USD 1.11 billion.

The agreement involves supply of optical connectivity products as per customer specifications through March 2029. Product allocation will be defined separately for each financial year from FY27 to FY29, while purchase orders will be released periodically during the contract period.

The company stated that the agreement establishes a reciprocal risk-sharing framework with capped financial liabilities for both parties in the event of demand shortfalls or supply capacity shortages. STL also clarified that the contract does not fall under related party transactions and that the promoter group has no interest in the awarding entity.

AI Data Centre Focus

In its press release, STL stated that the agreement relates to supply of optical connectivity products for AI data centre build-outs in the United States through one of its subsidiaries.

The company highlighted its in-house research and development capabilities in fibre optic designs and AI-ready networks. STL recently launched its STL Neuralis AI Data Center Portfolio, which includes ultra-high-density pre-terminated fibre cables designed for GPU clusters and the Celesta IBR cable series featuring up to 6,912 fibres for high-speed data centre interconnect applications.

Management Commentary

Ankit Agarwal, Managing Director, STL, said, “Under this agreement, STL, through its optical solutions, will support building AI data center infrastructure in the US for this hyperscaler. We are enabling connectivity backbone for the AI data centers.”

About The Company

Sterlite Technologies Limited (STL) is a Pune-based connectivity solutions provider engaged in manufacturing optical fibres, optical fibre cables, optical connectivity products and data centre networking solutions. The company operates integrated manufacturing facilities across India, Italy, Brazil, the United States and China, serving customers in more than 100 countries.

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Disclaimer: This article is for informational purposes only and not investment advice.