Sterlite Tech 2026: CLSA target ₹655 on $1bn order

Why Sterlite Technologies is in focus

Sterlite Technologies Ltd (STL) has moved into the spotlight after a sharp re-rating in 2026, driven by an AI-linked optical connectivity deal and a major brokerage upgrade. According to NSE data cited in reports, the stock has surged more than 330% so far in 2026 and climbed over 544% in the past year. The rally has been accompanied by multiple upper-circuit sessions and fresh all-time highs in May.

The latest trigger was a large, multi-year optical connectivity supply arrangement linked to a US-based hyperscale partner, disclosed through an exchange filing. The order size was described as $1 billion, also stated as about ₹10,000 crore. Following that update, global brokerage CLSA reiterated an Outperform view and raised its target price sharply.

The hyperscaler deal that changed sentiment

The deal in focus is a more than ₹10,000 crore supply order secured by a subsidiary, linked to a US-based “hyperscale” partner. While full commercial details were not included in the provided extracts, CLSA framed the contract as a major validation for Sterlite’s AI data centre optical products business.

A separate reference in the provided material described the rally as being supported by a hyperscale partner “PAL”, strong order-book references, and brokerage upgrades. With AI data centres increasing demand for high-speed connectivity, the order has been positioned as a meaningful proof point for STL’s optical networking product opportunity.

CLSA’s call: Outperform stays, target raised to ₹655

CLSA increased its target price for Sterlite Technologies by 60% to ₹655, from ₹405, while maintaining an Outperform rating. The brokerage also stated that the hyperscaler-linked order could position the company to deliver a 49% EBITDA CAGR over the coming years.

In its rationale, CLSA pointed to expectations of a multi-year data centre boom across North America and India, which could drive demand for optical networking products. The brokerage also said it has significantly increased its growth forecasts after the large deal win and an improving outlook, as cited in the provided excerpts.

What the stock did after the update

The market response was immediate. STL ended 5% higher at a record high of ₹441.40 on Friday versus a previous close of ₹420.40, as per the data shared in the text. Another snapshot also reported it as trading 5.00% upper at ₹441.40 at 10:12:45 on Fri May 22, 2026.

Momentum continued into the next week. On Mon May 25, 2026, the stock was reported to be locked at the upper circuit around ₹463.20 to ₹463.45. One report said it was trading 5.00% upper at ₹463.45 as on 09:59:05, and another said it was locked at ₹463.20 on the NSE as of 1 PM.

A rally measured in multiple timeframes

Across timeframes, the provided material cited several return markers. The stock was reported as up 544% over the last one year and up 351.74% over two years in one segment. Another report pegged the year-to-date move near 351.9%.

Short-term moves were also highlighted. One datapoint said the stock doubled in the past five weeks, rising 100% from ₹86.35 on January 27, 2026. Another reference cited a rally from a 2026 low of ₹84.60, also on January 27, and said the stock skyrocketed 550% from that low.

Technical snapshot: RSI flag and weekly performance

The provided excerpts also included technical indicators. One report said STL had an RSI of 81.2, a level that is commonly interpreted as showing stronger buying momentum during that period.

A weekly comparison was also cited. From 18 to 22 May 2026, STL gained 6.62% and outperformed the Sensex, which rose 0.50% in the same period. Another data point mentioned the stock was 9.79% higher over the last five market sessions in a separate trading window.

Recent fundamentals mentioned in the reports

One Hindi excerpt included quarterly financial figures for the March quarter. It stated revenue of ₹1,440 crore and profit after tax of ₹28 crore, compared with a loss of ₹2 crore in the December quarter.

The same set of excerpts also noted that Nomura advised a “buy” and raised its target price to ₹440 from ₹280. These details were presented alongside the broader theme of strong price momentum after the order update.

Key numbers at a glance

Market impact and why it matters

The move in STL shows how quickly the market reprices stocks when a large order intersects with a strong thematic narrative. Here, the narrative is AI-related data centre build-outs and the need for high-capacity optical networking products. CLSA explicitly tied its outlook to a multi-year data centre boom across North America and India, and to a higher earnings trajectory supported by the hyperscaler order.

The stock’s repeated 5% upper circuit sessions and an RSI above 80 also reflect how crowded the trade became over a short period. For investors, the headline numbers to track are the ₹10,000 crore order execution, whether additional order-book references translate into reported revenue, and how margins evolve relative to the implied 49% EBITDA CAGR framing used by CLSA.

What to watch next

The next set of cues will come from company updates on execution milestones for the hyperscale order and any incremental disclosures on product mix in AI data centre optical connectivity. Investors will also track subsequent broker research changes following CLSA’s upgrade and the newer price levels after the stock’s sharp run-up.

For now, the story remains centered on a single large deal, a meaningful brokerage re-rating to ₹655, and a stock that has already delivered outsized returns in 2026 and over the past year, as cited in the provided reports.