Sterlite Tech shares rally 5% post-multifold profit jump in Q2; brokerages see up to 45% upside

The stock opened at Rs 799 and rallied 8.94 percent to touch an intra-day high of Rs 870.45. The stock closed 4.92 percent higher at Rs 869.80, on the BSE. Post the earnings announcement, brokerages remained positive on the stock outlook, with CLSA and Nomura reiterating their bullish stance. Sterlite Technologies Q2FY27 results Sterlite Technologies’ consolidated profit jumped 12825% to stand at Rs 517 crore for the second quarter ended September 30.

The company posted a net profit of Rs 4 crore a year ago, according to a regulatory filing. Its consolidated revenue more than doubled to Rs 2,529 crore in the reported quarter from Rs 1,034 crore in the September 2025 quarter while EBITDA jumped sixfold to Rs 846 crore from Rs 141 crore in the year-ago period. "Q2 (second quarter) FY27 is our best quarter yet, with the highest revenue and EBITDA in STL’s history.

It reflects the strength of demand for AI-ready digital infrastructure," STL Managing Director Ankit Agarwal said. The company reported an open order book of Rs 35,274 crore at the end of the quarter. "The large multi-year agreements we secured this quarter, along with an open order book of Rs 35,274 crore, give us strong visibility as hyperscalers and telecom operators scale their digital infrastructure and networks," Agarwal said.

Brokerage on Sterlite Technologies: Outperform, target price Rs 1,610 Brokerage firm CLSA has maintained its ‘Outperform’ rating on Sterlite Technologies with a target price of Rs 1,610, indicating potential of 46 percent upside from the stock's recent trading levels. The brokerage noted that Q2FY27 revenue stood at Rs 25.3 billion, rising 32 percent on quarter-on-quarter (QoQ) basis and 145 percent on year-on-year basis, around 9 percent above its estimates.

The optical business was 97 percent of the company's total revenue, with the segment growing 34 percent QoQ and 147 percent YoY. Adjusted EBITDA surged 69 percent QoQ to Rs 6.5 billion, nearly five times and 69 percent QoQ. The EBITDA margin expanded to 25.7 percent. CLSA noted that profit after tax (PAT) increased 162 percent QoQ to Rs 5.2 billion. It also highlighted that the order book had expanded 1.9x QoQ to Rs 353 billion, while the company's balance sheet was in a net-cash position.

With the strong quarterly performance, CLSA raised its FY27-FY29 estimates by 5-40 percent. The brokerage expects Sterlite Technologies to deliver a 104 percent compound annual growth rate (CAGR) in EBITDA through FY29. Nomura on Sterlite Tech: Buy, Target Price – Rs 1350 Nomura maintained its ‘Buy’ rating on Sterlite Technologies with a target price of Rs 1,350, citing strong Q2 results and improved profitability prospects.

The target price indicates an upside of 25.5 percent from the current levels. The brokerage highlighted that the company had upgraded its FY29 margin guidance and raised its FY27-FY29 EBITDA margin estimates by 58-153 basis points. Nomura expects Sterlite Technologies' PAT to increase 57x over FY26 and FY29. It also expects optical fibre cable demand to remain robust, driven by data centre rollouts.