Sterlite Technologies shares continue to rally: Here is why the stock zoomed 20% today

Shares of the company zoomed 20% on Tuesday to an intraday high of ₹119.20 apiece on the National Stock Exchange. Last seen, the smallcap stock was trading at ₹113.37 per share, jumping 14.08%.

On Monday, Sterlite Technologies (STL), in its press release, announced the launch of a new generation of data centre solutions, ranging from cabling to end-to-end connectivity offerings designed to power the relentless demands of AI-driven data centre infrastructure.

This new-age solution is engineered to meet the exact requirements of hyperscalers, colocation players, enterprises and telecom service providers to build agile, scalable, and sustainable data centre infrastructure.

With the global data centre market projected to reach $517 billion by 2030 (growing at a CAGR of 10.5% from 2021 to 2030), legacy infrastructure cabling systems are buckling under the demands for lower network latencies, rising network speeds and density requirements, as well as sustainability mandates.

With this launch, STL bridges this gap by bringing to the core its 30+ years of leadership in optical network connectivity.

STL’s data centre products are designed, manufactured, and tested in a state-of-the-art manufacturing facility, meeting international standards. STL’s solutions are fully compliant with ANSI/TIA-942, TIA-568 and ISO 11801 standards⁠ and backed by a 25-year performance warranty, ensuring reliability, the press release added.

Sterlite Technologies' Data Centre solution includes high-performance fibre and copper cabling solutions designed for modern buildings, campuses, and data centres. Copper systems ensure reliable data, security, and AV connectivity, while the riser and campus fibre cabling support high-speed, low-latency networking for smart infrastructure.

In the fourth quarter of the financial year 2024-25, Sterlite Technologies' optical networking business reported a 26% year-on-year (YoY) revenue growth.

The company's consolidated revenue increased 24.7% YoY to ₹1,052 crore in Q4 FY25, while the net loss narrowed to ₹40 crore from an ₹82 crore loss a year back.

Sterlite's Managing Director Ankit Agarwal had said,"FY25 was marked by resilience and customer focus. By doubling down on our core priorities—customer and cost leadership—we not only sustained momentum but also laid the groundwork for future growth. The strengthening order pipeline and customer engagements signal a promising shift in market dynamics."

"The trifecta of AI-ready infrastructure, rural fibreisation, and data centre expansion will be the cornerstone of global digitalisation, and we’re fully prepared with our extensive connectivity solutions," said Agarwal.