Sterlite Technologies share price hit a 5% upper circuit at ₹748.90 today following the release of its 'Lakshya' roadmap. The company aims to quadruple revenue to ₹20,000 crore by FY29, backed by a ₹3,000 crore expansion to meet AI data center demand. Investors should note the stock is currently in the 'T' group, meaning only delivery-based trading is allowed.
Sterlite Technologies shares saw strong investor interest on Friday, hitting a 5% upper circuit to reach ₹748.90. This price movement follows the announcement of the company’s new 'Lakshya' strategic roadmap, which outlines a plan to transform its business operations over the next three years.
The company has set an ambitious target to reach a revenue of ₹20,000 crore by FY29, a significant jump from its FY26 levels of approximately ₹4,750 crore. To support this growth, the board has approved a capital spending plan of ₹3,000 crore. This money will be used to expand the manufacturing capacity for optical fiber and cables by 50%. The management believes this investment is necessary to capture rising demand from global AI data centers and data center interconnectivity projects, which are expected to expand significantly in the coming years.
The optimism around the stock is also tied to the company's improved financial health. In the first quarter of FY27, Sterlite Technologies reported a record order book of ₹18,618 crore. A major contributor to this is a $1.1 billion contract with a large US hyperscaler, which has provided the company with strong revenue visibility in a key international market. Furthermore, the company has achieved a net debt-free status, helped by a ₹1,500 crore fundraising exercise through a Qualified Institutions Placement, which has strengthened its balance sheet.
While the growth roadmap highlights long-term potential, investors should be aware of specific trading restrictions. The stock is currently placed under the 'T' group, or trade-to-trade segment, by the exchanges. This means intraday trading is not allowed, and investors must take delivery of the shares for every transaction. This is a common measure regulators use to curb excessive speculation in volatile stocks.
Looking ahead, the company’s success will depend on its ability to execute this large expansion project without delays. Profitability will also be a key factor to watch, as the firm aims for EBITDA margins—a measure of core operating profitability—exceeding 27% by FY29. Other risks that investors should track include the pace of recovery in the US optical market and potential bottlenecks in the supply chain for raw materials, which could affect both costs and project timelines.