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The company identified optical TAM expansion, customer co-development, integrated connectivity solutions and tech-led differentiation as key growth drivers. Sterlite Technologies also plans to expand its capacity to 1.5 times to support the next phase of growth. As part of its capital allocation for long-term growth, the company plans to invest Rs 1,000 crore annually over the next three financial years to expand preform, fiber and cable capacities by 50%. The company has further committed 2% of annual revenue towards continuous technological innovation across MCF, HCF and CPO. Also Read | Best FII bets: 3 AI-linked stocks and up to 250% rally in Q1. Have investors missed the bus? Board approves Rs 3,000-crore capex The company has also approved a Rs 3,000 crore capital expenditure plan to expand capacity at its existing manufacturing facility. The proposed expansion will increase its existing installed manufacturing capacity by approximately 50%, with the additional capacity expected to be operational by the end of FY29. Sterlite Technologies said the expansion is being undertaken in response to global demand for optical fibre cables and connectivity solutions. The company’s existing capacity utilisation is around 70%, although it has not disclosed its current capacity, citing the commercially sensitive and competitive nature of the information. The proposed Rs 3,000 crore investment will be funded through internal accruals and/or debt. The company said the capacity addition is aimed at meeting anticipated growth in demand and strengthening its manufacturing capabilities. Its Board of Directors approved the capex and capacity expansion at its meeting held on Thursday. Sterlite Tech Q1 numbers In the first quarter of FY27, FII holding in the company increased by 6.75 percentage points to 18.22%, while the stock soared 248% in three months. The surge in foreign ownership comes at a time when India’s data centre industry is entering what could be a multi-year expansion phase. Rapid digitalisation, growing cloud adoption and the rising infrastructure needs of artificial intelligence are driving demand for data centres and, in turn, optical fibre connectivity. Last month, international brokerage CLSA upgraded the stock to Outperform and assigned a target price of Rs 950. The brokerage said Sterlite Technologies' order book surged 155% QoQ to Rs 18,600 crore, pointing to a strong growth outlook. Sterlite 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. Also Read | FIIs triple stake in Sterlite Tech after a stellar 400% surge this year. More legs to the rally? 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. Sterlite Tech shares have been one of the best performers this year as the stock price has surged 350% in the last six months and about 630% on an year-to-date basis. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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