Sterlite Technologies surged 880% in 2026, reaching ₹1,011 as AI-led demand for optical fiber cables boosted the stock. The company secured a $1.2 billion supply agreement with a hyperscale partner. Many investors added the stock to their portfolios, and Nirmal Bang Institutional Equities now expects the rally to persist further.
In a market dominated by rising geopolitical tensions, which have pushed several stocks to multi-year lows in 2026, only a handful have managed to swim against the tide. Sterlite Technologies is among the few stocks that have stood out.
After remaining sideways for an extended period, the stock began its bull run at the start of the year and has since maintained a largely one-way rally, with no major pullbacks. The sustained run has translated into a massive 880% surge, taking the stock to ₹1,011.
The phenomenal run has largely been supported by a series of order wins amid rising AI-led demand for optical fiber cables, strengthening its operational outlook. Its improved performance in recent quarters has also prompted investors to add the stock to their portfolios.
In recent years, the company has strengthened its position to become the largest optical fiber and optical fiber cable manufacturer in the country. It also expanded it presence in overseas markets, with an established position in the global optical fiber market.
Earlier this month, the company said one of its wholly owned subsidiaries had entered into a long-term supply agreement (LTSA) with a hyperscale partner.
The order involves the supply of optical connectivity products in each calendar year from 2026 to 2030, with a total potential contract value of nearly $1.2 billion, based on prevailing selling prices for the connectivity products supplied.
In FY26, the company launched Neuralis, a purpose-built connectivity suite for AI data centers, and expanded its presence in North America. It also introduced India's first Hollow Core Fiber cable, offering 46% faster transmission and near-zero latency through an air-core design.
It expects continued recovery in optical demand, along with long-term growth driven by US and European hyperscalers and BharatNet rural fiber.
Meanwhile, next-generation hollow core and multicore technologies are moving from pilot projects towards commercial scale.
Between 2014 and 2017, the stock enjoyed a strong bull run, surging a cumulative 1,377%, which also marked its biggest-ever sustained gain.
Even as the stock remains on track to deliver a four-digit return this year, domestic brokerage firm Nirmal Bang Institutional Equities expects the rally to persist as the brokerage has initiated 'buy' call on the stock with a target price of ₹1,340,
It believes that AI and data center expansion, government-led broadband programs, and fifth generation/sixth generation (5G/6G) rollouts could provide further growth opportunities for the company.