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

What happened

Sterlite Technologies shares closed 4.92% higher at Rs 869.80 on the BSE after the company reported a 12825% jump in consolidated profit to Rs 517 crore for the second quarter, up from Rs 4 crore a year earlier.

Confirmed

Global impact / market context

The profit jump came from more sales of optical fibre cable to AI-ready data centres, better profit per sale and a one-time tariff refund, which means earnings rose sharply and brokerages CLSA and Nomura stayed positive on the stock.

Analyst inference

The stock opened at Rs 799 and touched Rs 870.45 during the session, a gain of 8.94%, before closing near that high, which means buyers strongly rewarded the results and brokerages see up to 45% more upside.

Analyst inference

What to watch

1. Consolidated revenue more than doubled to Rs 2,529 crore from Rs 1,034 crore, while EBITDA jumped sixfold to Rs 846 crore, which means core operating profit grew much faster than sales. Confirmed
2. Investors may watch whether Sterlite sustains its record revenue and EBITDA, since part of the profit came from a one-time tariff refund rather than repeated business activity. Proposed
3. Continued demand for optical fibre cable from AI-ready data centres would support future capital spending and revenue, while any slowdown in that demand could pressure costs and profit per sale. Analyst inference

Evidence

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