Sterlite Tech shares hit 5% upper circuit as firm targets Rs 20,000 crore revenue by FY29 amid booming AI demand

Sterlite Technologies shares surged 5% on the BSE, reaching a 5% upper circuit of Rs 750, following the company's announcement of its ambitious growth plans. The firm aims to become one of the top five global players in optical connectivity solutions and targets a revenue of Rs 20,000 crore by fiscal year 2029. Sterlite Technologies identified expansion in optical telecommunications market, customer co-development, integrated connectivity solutions, and technology-driven differentiation as the key growth drivers.

To support the next phase of growth, the company plans to double its capacity to 1.5 times. Over the next three financial years, Sterlite Technologies intends to invest Rs 1,000 crore annually to expand preform, fiber, and cable capacities by 50%. Furthermore, the company pledged to dedicate 2% of its annual revenue towards continuous technological innovation across MCF, HCF, and CPO.

Sterlite Technologies approved a Rs 3,000 crore capital expenditure plan to increase its existing installed manufacturing capacity by around 50%. The expansion is set to be completed by the end of fiscal year 2029, responding to the global demand for optical fiber cables and connectivity solutions. The company's current capacity utilization stands at 70%, though the exact figures remain undisclosed due to commercial sensitivity and competitive reasons.

The Board of Directors approved the capital expenditure during a meeting held on Thursday. In Q1 FY27, foreign institutional investors' holdings in Sterlite Technologies rose by 6.75 percentage points to 18.22%, while the stock experienced a remarkable 248% increase over three months. This surge in foreign ownership comes as India's data center industry enters what could be a multi-year expansion phase.

Rapid digitalization, expanding cloud adoption, and the increasing infrastructure demands of artificial intelligence are driving demand for data centers and optical fiber connectivity. CLSA, an international brokerage, upgraded Sterlite Technologies' stock to 'Outperform' and set a target price of Rs 950, citing a strong growth outlook.

The company reported its strongest quarterly performance in Q1 FY27, driven by higher demand for optical connectivity products, growth in its data center business, and a record order book linked to AI-ready digital infrastructure.