Sterlite Technologies shares hit 5% upper circuit on ₹3,000 crore capacity addition update; what’s in focus next?

Optical fibre cable and telecom equipment maker Sterlite Technologies shares surged 5% to hit an upper circuit level during the trading session on Friday, September 4, as investors reacted to the company’s latest ₹3,000 crore capacity addition approval.

NSE data showed that Sterlite Tech shares surged 5% to hit an intraday high and upper circuit of ₹748.90 apiece during Friday’s trading session, in comparison to ₹713.25 apiece at the previous equity market close.

At the upper circuit level, trading volumes surged by more than 256,000 equity shares during the session on September 4, with 25,76,986 total quantity of buy orders on NSE, with no sell orders so far.

“We wish to inform you that the board of directors of Sterlite Technologies Limited, at its meeting held today, i.e. September 3, 2026, has, inter alia, considered and approved the capex/capacity addition in the existing manufacturing facility,” Sterlite Tech informed the stock exchanges.

While the company management acknowledges a structural shift in demand, the key focus of Sterlite Technologies remains on expanding telecom connectivity and scaling AI data centre connectivity needs.

Sterlite Tech’s ₹3,000 crore capex plan

On Thursday evening, Sterlite Technologies’ board of directors approved a ₹3,000 crore capital expenditure and capacity addition plan in the company’s existing manufacturing facility due to the demand for optical fibre cables and connectivity business globally.

The filing data further showed that the company utilises 70% of its existing capacity, and the proposed capacity addition plan marks nearly a 50% increase over the existing installed manufacturing capacity.

Sterlite Tech also said that the proposed capacity addition is expected to be completed by the end of the financial year 2029. The company also disclosed that it will fund the plan through internal accruals or debt.

What do analysts predict?

Experts from CLSA said that Sterlite Tech’s management acknowledged that the company’s business is at a pivotal moment, with the scale of opportunity enhanced significantly by artificial intelligence (AI) data centres.

“AI data centre needs are very different from traditional data centres, including higher AI density driving multi-fold growth, besides interconnection between data centres. In addition to the US data centre opportunity, the STL Indian market will also see 10G by 2030 from the current 1.5GW,” said CLSA analysts.

The experts also said that the Indian data centre market will provide an added opportunity for Sterlite Tech to extend global relationships to the home market.

FY29 outlook

In Sterlite Tech’s latest analyst call, the management said that they aim to achieve a revenue target of ₹20,000 crore by FY29, from ₹4,750 crore revenue in FY26. CLSA analysts predict revenue of ₹10,400 crore in the same period.

The company also predicts that the EBITDA margin will improve to 27% by FY29, above the estimates of 23%, in comparison to a 13.2% margin as of the year ended FY26.

Sterlite Tech’s management also said that the company has an order book visibility of more than $2 billion.