In a market dominated by rising geopolitical tensions, which have pushed several stocks to multi-year lows in 2026, only a handful have managed to swim against the tide. Sterlite Technologies is among the few stocks that have stood out.
After remaining sideways for an extended period, the stock began its bull run at the start of the year and has since maintained a largely one-way rally, with no major pullbacks. The sustained run has translated into a massive 880% surge, taking the stock to ₹1,011.
The phenomenal run has largely been supported by a series of order wins amid rising AI-led demand for optical fiber cables, strengthening its operational outlook. Its improved performance in recent quarters has also prompted investors to add the stock to their portfolios.
In recent years, the company has strengthened its position to become the largest optical fiber and optical fiber cable manufacturer in the country. It also expanded it presence in overseas markets, with an established position in the global optical fiber market.
Earlier this month, the company said one of its wholly owned subsidiaries had entered into a long-term supply agreement (LTSA) with a hyperscale partner.
The order involves the supply of optical connectivity products in each calendar year from 2026 to 2030, with a total potential contract value of nearly $1.2 billion, based on prevailing selling prices for the connectivity products supplied.
In FY26, the company launched Neuralis, a purpose-built connectivity suite for AI data centers, and expanded its presence in North America. It also introduced India’s first Hollow Core Fiber cable, offering 46% faster transmission and near-zero latency through an air-core design.
AI boom, hyperscaler demand: Is Sterlite Technologies just getting started?
Positioned as an 8% global-share, glass-to-terabit player, the company is looking to ride the AI, FTTH, and sovereign infrastructure waves. The company in its FY26 annual report said, “we are only just beginning. The results… will be phenomenal.”
It expects continued recovery in optical demand, along with long-term growth driven by US and European hyperscalers and BharatNet rural fiber.
Meanwhile, next-generation hollow core and multicore technologies are moving from pilot projects towards commercial scale.
Could Sterlite Technologies extend its record run?
If the stock closes the year around its current levels, it will mark its biggest annual gain since its listing. The rally is not entirely new for long-term shareholders, as the stock delivered multibagger returns earlier in 2017 and 2014.
Between 2014 and 2017, the stock enjoyed a strong bull run, surging a cumulative 1,377%, which also marked its biggest-ever sustained gain.
Even as the stock remains on track to deliver a four-digit return this year, domestic brokerage firm Nirmal Bang Institutional Equities expects the rally to persist as the brokerage has initiated ‘buy’ call on the stock with a target price of ₹1,340,
It believes that AI and data center expansion, government-led broadband programs, and fifth generation/sixth generation (5G/6G) rollouts could provide further growth opportunities for the company.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
