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Two Indian Stocks Surge on American Data Centre and Pipeline Demand
Two Indian companies that make important infrastructure products have seen their shares rise sharply.
Sterlite Technologies makes fibre-optic cables, which can help connect computers inside data centres.
It reported much higher sales and profit in its latest quarter, and its order book reached a record.
Some of its large customer agreements are estimates for future business, not money already received.
Welspun Corp makes large steel pipes used for oil, gas and water.
Its US business won a very large order, but deliveries are not expected until FY28 and FY29.
Welspun’s reported quarterly profit included a one-time gain from selling part of an investment.
The article says both companies have opportunities, but their high share prices and other risks mean investors should not assume the gains will continue.
Sterlite Technologies shares rose nearly 690% in a year to Rs 955 on October 1, 2026, as its business gained exposure to data-centre demand.
Sterlite reported record June-quarter sales of Rs 1,910 crore, net profit of Rs 197 crore and an order book of Rs 18,618 crore.
Its announced hyperscaler supply agreements are estimated at large values, but orders will be placed periodically and one agreement may overlap with another.
Welspun Corp shares gained about 205% in a year; its US subsidiary won a roughly USD 412.5 million pipe order, scheduled for delivery in FY28 and FY29.
Welspun’s June-quarter net profit included a Rs 548 crore one-time gain; the article says its underlying profit was Rs 499 crore, while highlighting project delays and valuation risks.
- Who
- Sterlite Technologies and Welspun Corp.
- What
- Their shares surged as investors responded to data-centre and infrastructure demand, including large order announcements.
- Where
- The companies are Indian; the article highlights business and orders in North America and the United States.
- When
- The article reports share-price performance through October 1, 2026, and company results for the June 2026 quarter.
- Why
- The article links the rallies to demand for fibre-optic infrastructure for data centres and steel pipes for infrastructure projects.
Reasons for optimism
Risks and caution
Sterlite’s AI and data-centre opportunity
Reasons for optimism
Data centres accounted for 21% of Sterlite’s revenue in the June 2026 quarter, and its order book reached a record Rs 18,618 crore.
Risks and caution
The article says the share trades at 208 times trailing earnings, depends increasingly on a few large customers, and has agreements whose estimated value is not guaranteed revenue.
Welspun’s order and operating performance
Reasons for optimism
Welspun reported higher sales and operating profit, a 17% June-quarter operating margin, net cash in June, and a record global order book.
Risks and caution
Its reported quarterly profit included a substantial one-time gain, its shares trade above historical valuation measures cited in the article, and large pipe projects may be delayed.
Key facts
- Sterlite share-price rise
- About 690% in one year; Rs 955 at the October 1, 2026 close.
- Sterlite June-quarter results
- Sales of Rs 1,910 crore and net profit of Rs 197 crore.
- Sterlite order book
- A record Rs 18,618 crore at the end of the June 2026 quarter.
- Sterlite valuation
- The article reports a trailing price-to-earnings ratio of 208 times.
- Welspun share-price rise
- About 205% in one year; Rs 2,606 at the October 1, 2026 close.
- Welspun US order
- Welspun Tubular LLC won an order worth about USD 412.5 million, with supply planned for FY28 and FY29.
- Welspun June-quarter profit
- Reported net profit was Rs 1,048 crore, including a Rs 548 crore one-time gain; underlying profit was stated as Rs 499 crore.
Sources
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