6 days ago
CLSA Sees 46% Upside for Sterlite Technologies on AI Demand
CLSA is a brokerage that studies companies and their stocks.
It thinks Sterlite Technologies could grow strongly because data centres need more optical fibre and connection equipment.
Sterlite’s order book became much larger in the first quarter of FY27.
A large order from a US hyperscaler was a major reason for the increase.
Data centres made up 21% of Sterlite’s revenue, compared with 1% in the previous financial year.
CLSA also mentioned a $1.1 billion artificial-intelligence data-centre order.
The brokerage expects Sterlite’s sales and profits to rise through FY29.
Its positive view depends on the company continuing to win orders and expand its data-centre business.
CLSA retained its ‘Outperform’ rating and set a Rs 950 target price for Sterlite Technologies, implying 46% potential upside.
Sterlite Technologies’ 1QFY27 order book rose 155% quarter-on-quarter to Rs 18,600 crore, led by a US hyperscaler order.
Data centres contributed 21% of revenue in 1QFY27, up from 1% in FY26, making the segment the company’s fastest-growing business.
CLSA cited a $1.1 billion AI data-centre order, a $210 million international telecom order and a Rs 960 crore domestic telecom order.
CLSA estimates FY27 revenue of Rs 7,996.8 crore and EBITDA of Rs 1,644.5 crore, rising to Rs 10,367.2 crore and Rs 2,396.8 crore respectively by FY29.
- Who
- Sterlite Technologies and CLSA, which issued the research assessment.
- What
- CLSA retained an ‘Outperform’ rating and a Rs 950 target price for Sterlite Technologies, citing data-centre demand, order growth and improving financial estimates.
- Where
- The growth opportunity is linked primarily to data centres in the United States and India.
- When
- The assessment is based on a CLSA report dated August 26, 2026, covering 1QFY27 and projections through FY29.
- Why
- CLSA expects artificial-intelligence workloads, hyperscaler expansion and rising fibre requirements to support Sterlite Technologies’ growth.
Key facts
- CLSA rating
- ‘Outperform’
- Target price
- Rs 950, implying 46% potential upside
- 1QFY27 order book
- Rs 18,600 crore, up 155% quarter-on-quarter
- Data-centre revenue share
- 21% in 1QFY27, compared with 1% in FY26
- AI data-centre order
- $1.1 billion order for a US hyperscaler’s AI data centre
- FY27 revenue estimate
- Rs 7,996.8 crore
- FY29 revenue estimate
- Rs 10,367.2 crore
Quotes
CLSA
Brokerage that issued the research report and rating on Sterlite Technologies.
“Sterlite’s AI DC portfolio ‘Neuralis’ has expanded its DC opportunity with a large US$1.1bn order win”
financialexpress.com
“Sterlite’s order book soared 155% QoQ in 1QFY27 to Rs186bn and will continue expanding”
financialexpress.com
Sources
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