Shares of HFCL and Sterlite Technologies hit their upper circuits on Tuesday, extending their sharp rallies in 2026 on the back of strong business updates. The two stocks have been standout multibaggers this year: HFCL has surged more than 267% so far, while Sterlite Tech has delivered a staggering 705% return.

Why are HFCL shares rallying?

HFCL's gains follow a strong business update, after its FY26 order book surged 113% to Rs 21,206 crore (ET Markets). An expanding order book points to stronger revenue visibility, as orders already won typically convert into sales over the coming quarters.

Why are Sterlite Tech shares rallying?

Sterlite Technologies has also rallied on strong business momentum. The company has said it is targeting Rs 20,000 crore in revenue by FY29 amid booming artificial intelligence-driven demand (ET Markets).

Both companies operate in the optical fibre and telecom equipment sector, where demand has strengthened. The buildout of AI data centres is driving heavy consumption of optical fibre and high-capacity connectivity gear globally, benefiting suppliers to this ecosystem. A 'multibagger' refers to a stock that returns a multiple of its purchase price — a 705% gain, for instance, roughly equates to an eight-fold return. Upper circuits are exchange-imposed price bands that halt further intraday gains for a stock, and hitting one reflects heavy buying interest.

Original report: Economic Times Markets.