Sterlite Tech shares jump 5% after CLSA upgrades 2026 multibagger after strong Q1 results

Published 27 July 2026 · finance

Shares of Vedanta-backed Sterlite Technologies rallied as much as 5% to their day’s high of Rs 592 on the BSE on Monday after international brokerage

Shares of Vedanta-backed Sterlite Technologies rallied as much as 5% to their day’s high of Rs 592 on the BSE on Monday after international brokerage CLSA upgraded the stock to Outperform and assigned a target price of Rs 950, implying an upside of 68% from current market levels. It's been an unforgettable year for Sterlite Tech shareholders as the stock has rocketed 466% in 2026 alone. What is CLSA saying?The brokerage said Sterlite Technologies' order book surged 155% QoQ to Rs 18,600 crore, pointing to a strong growth outlook. Factoring in the company's recent Rs 1,500 crore QIP fundraising and the significant Q1 FY27 beat, CLSA raised its forecasts by 7-125% for FY27-29CL. The brokerage now sees Sterlite Technologies delivering a 62% EBITDA CAGR. Sterlite Tech secured a multi-year contract worth $1.11 billion, or more than Rs 10,000 crore, to supply optical connectivity products for next-generation AI data centres. The company also received multiple hyperscaler orders worth more than $100 million for Neuralis, its integrated data centre solutions portfolio.

It also won a strategic order to supply long-haul, dark-fibre high-density micro-cables to a major connectivity infrastructure provider.Also read: Forget selling! FIIs doubled down on this AI multibagger stock that's up 200% YTDThe order wins come as data centres require higher fibre density, faster data transmission and more efficient connectivity systems to handle AI workloads. STL has been positioning itself as a supplier of optical fibre, cables and integrated connectivity products for this buildout.Sterlite Tech said it achieved a net debt-free balance sheet during the quarter after raising Rs 1,500 crore through a qualified institutional placement.The company said the fundraise has strengthened its balance sheet and will help support the next phase of growth. Following the improvement in its financial position, CRISIL revised its rating outlook to “Stable”, while ICRA upgraded the company’s credit rating to “AA (Stable)”.The balance-sheet improvement is important for STL as it enters a larger order execution cycle. A stronger capital base gives the company more room to scale production, invest in products and manage working capital as orders rise.

Sterlite Tech Q1 resultsSterlite Technologies reported its strongest quarterly performance in Q1FY27, helped by higher demand for optical connectivity products, growth in its data centre business and a record order book linked to AI-ready digital infrastructure.The company reported revenue of Rs 1,910 crore for the quarter ended June 30, up 87% from Rs 1,019 crore in the same quarter last year. Sequentially, revenue rose 33% from Rs 1,441 crore in Q4FY26. Profit after tax rose 870% to Rs 197 crore from Rs 10 crore a year earlier. In the March quarter, the company had reported PAT of Rs 59 crore.Read more: AI, data centre boom powers these 9 stocks up to 477% in 2026. Can you still join the party?EBITDA rose to Rs 397 crore, compared with Rs 140 crore in Q1 and Rs 218 crore in the previous quarter. EBITDA margin stood at 20.8%, the highest in nearly 20 quarters, helped by a better product mix, operating leverage and higher contribution from the data centre business.STL Managing Director Ankit Agarwal said Q1 FY27 was the strongest quarter in the company's history, with record revenue and profitability reflecting the strength of its AI-ready digital infrastructure portfolio and the trust placed by hyperscalers and telecom operators.