Sterlite Technologies Shares Hit 5% Upper Circuit as Company Unveils Ambitious FY29 Roadmap; FIIs and DIIs Increase Stake
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Sterlite Technologies is betting big on the AI data centre boom, with a Rs 3,000 crore expansion plan, 50 per cent higher capacity and a Rs 20,000 crore FY29 revenue target.
✨ Key Takeaways
Sterlite Technologies shares were locked in a 5 per cent Upper Circuit on Friday, September 4, after the company announced a Rs 3,000 crore capital expenditure plan to expand capacity at its existing manufacturing facilities.
The stock gained after the company outlined an ambitious growth roadmap for FY29, supported by a strong Order Book, rising demand for optical connectivity and growing opportunities in AI data centres.
Company Plans 50% Capex
The company plans to increase its installed manufacturing capacity by around 50 per cent as part of the expansion. The additional capacity is expected to become operational by the end of FY29.
The company has also doubled its annual capex run rate to around Rs 1,000 crore. The spending will be directed towards expanding existing facilities and setting up a new greenfield manufacturing facility in India.
The higher capacity is aimed at supporting the company's expected growth as demand for optical connectivity and data centre infrastructure continues to rise globally.
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Rs 20,000 Crore EBITDA Target By FY29
During an investor call, the company outlined its FY29 targets, including revenue of Rs 20,000 crore and an EBITDA margin of more than 27 per cent.
Sterlite Technologies reported revenue of Rs 4,750 crore and an EBITDA margin of 13.2 per cent in FY26. Its FY29 revenue target therefore represents more than four-fold growth from FY26 levels, while the targeted EBITDA margin implies an improvement of around 13.8 percentage points.
The company expects the growth to be supported by its US$2 billion order book, expansion in the optical total addressable market, a better product mix and operating leverage.
AI Data Centres Emerge as Key Growth Driver
AI data centres have emerged as a major growth opportunity for Sterlite Technologies as their infrastructure requirements differ from those of traditional data centres.
Higher AI density and increasing interconnection requirements between data centres are driving demand for high-capacity optical connectivity.
The company sees significant potential in the US, where data centre investments remain strong. Sterlite Technologies expects the expansion of AI infrastructure to create additional opportunities for its optical connectivity business.
India is also expected to contribute to the opportunity. The company said the domestic market could see a 10G-related opportunity by 2030, with the addressable market expected to expand from the current 1.5GW.
FIIs and DIIs Increase Stake
FII holding in the company increased from 18.22 per cent in March 2026 to 19.71 per cent in June 2026, an increase of 1.49 percentage points. Over the same period, DII holding rose from 11.43 per cent to 13.27 per cent, marking an increase of 1.84 percentage points.
Together, FII and DII ownership increased by 3.33 percentage points during the quarter.
About Sterlite Technologies Ltd
STL is a leading manufacturer of OFs and OFCs. The company has global presence and manufactures in four continents with customers in more than 100 countries. Its offerings include building fifth-generation wireless technology (5G), rural, fibre to the X (FTTx), and enterprise and data centre networks.
Disclaimer: The article is for informational purposes only and not investment advice