Shares of Sterlite Technologies hit the 5% upper circuit after the company unveiled an ambitious set of growth targets for FY29, including revenue of Rs 20,000 crore and a goal of positioning itself among the global top five players in its industry.

To support the plan, Sterlite Tech's board has approved a capital expenditure of Rs 3,000 crore to expand manufacturing capacity by 50%. The expansion is underpinned by strong demand for optical connectivity, growth in AI infrastructure, and a record order book.

The company identified four key growth drivers: expansion of the optical total addressable market (TAM), customer co-development, integrated connectivity solutions, and technology-led differentiation.

Sterlite Technologies is an India-based provider of optical connectivity solutions, supplying optical fibre, fibre optic cables and related network infrastructure to telecom operators and other customers. Demand for such infrastructure has strengthened globally as data centres and AI workloads drive higher bandwidth requirements. The AI-driven buildout has boosted spending across the optical supply chain, as hyperscalers and telecom operators upgrade networks to carry growing data traffic between data centres.

In India, government-backed broadband expansion programmes such as BharatNet, which aim to connect rural areas with optical fibre networks, have been a recurring source of domestic demand for fibre and cable suppliers. The company's revenue target and capacity expansion signal its expectation that this demand environment will persist through FY29, and investors will be watching quarterly order book updates and capex execution for evidence that the plan is on track.

(Source: Economic Times Markets)