| Market Cap | ₹28,627 CrMid-cap |
|---|---|
| Revenue TTM | ₹5,642 CrOperating |
| RSI | 52.45Neutral Zone |
| Order from | Domestic Telecom Operator |
| Execution period | FY28 and FY29 |
| Deal value | ₹960 Cr |
| Share of market cap | 3.4% |
| Share of annual revenue | 17.0% |
Key highlights
- Order value estimated at approximately ₹960 crore for optical fibre cable supplies
- Primary execution period scheduled across Financial Years 2027-28 and 2028-29
- Contract includes an option for a two-year extension based on mutual agreement
- Awarding entity identified as a major domestic telecom operator
- Agreement conducted on an arm’s length basis with no promoter group interest
What Is the Order?
Sterlite Technologies has entered into a multi-year supply agreement with a prominent domestic telecom operator. Valued at roughly ₹960 crore, the contract entails the manufacturing and delivery of optical fibre cables tailored to specific customer specifications. The primary execution phase is scheduled for FY28 and FY29, providing a steady revenue stream for the company over a mid-term horizon.
Furthermore, the agreement includes a provision allowing for an additional two-year extension, potentially lengthening the partnership through FY31. This order highlights the sustained demand for high-specification fibre connectivity within the Indian telecommunications landscape.
Business Overview
- STL is a global leader in optical and digital solutions providing offerings for 5G and rural broadband
- The company operates across three main business units including Optical Networking and Global Services
- Manufacturing facilities are maintained across India, Italy, the UK, the US, Brazil, and China
- The firm serves a diverse client base consisting of global telcos, cloud companies, and citizen networks
- Recent domestic growth is driven by nationwide 5G rollouts and large-scale infrastructure projects like BharatNet
Financial Context
The ₹960 crore order adds significant volume to Sterlite Technologies' revenue pipeline, which reported a TTM turnover of ₹5,642 crore. The company currently demonstrates strong operational health with a TTM net profit of ₹243 crore and a high Durability score of 75. Institutional investor confidence is reflected in the recent shareholding patterns, where Foreign Institutional Investors increased their stake by 8.24% in the latest quarter.
Stock performance has been notable with a one-year price change exceeding 350%, as the telecom equipment sector benefits from increased capital expenditure by major network operators.
Industry Landscape
- The Indian telecom cable industry is witnessing a cyclical upturn driven by 5G network densification
- Increased demand for high-fibre count cables is coming from data centre interconnectivity requirements
- Government initiatives for domestic manufacturing provide tailwinds for integrated optical solution providers
- Global supply chain shifts are positioning Indian manufacturers as key exporters to European and US markets
| Share price | ₹557.05 |
|---|---|
| Market capitalisation | ₹28,627.42 Cr |
| Revenue (annual) | ₹4,745.00 Cr |
| Net profit (annual) | ₹56.00 Cr |
| Revenue (latest quarter) | ₹1,910.00 Cr+32.55% vs previous quarter |
| Net profit (latest quarter) | ₹197.00 Cr+233.90% vs previous quarter |
| P/E (TTM) | 117.81×Sector 86.78× |
| Promoter holding | 42.29%-2.15% QoQ |
| FII holding | 19.71%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Sterlite Technologies Limited announcing a multi-year supply agreement worth ₹960 crore. Market figures from a third-party data provider.
