Sterlite Tech Share Price Soars 15% on Major Government Contract Win

Market Performance

Sterlite Tech's share price experienced a notable 15.2% surge during Thursday's trading session on June 12, 2025. The stock reached a 4-week high of ₹88.7 per share, marking one of the most significant single-day gains for the optical fiber manufacturer.

The sharp upward movement in Sterlite Tech's share price followed the company's announcement of a significant contract win worth ₹2,631 Crore from Bharat Sanchar Nigam Limited (BSNL).

Main News

₹2,631 Crore BharatNet Contract Secured

Sterlite Technologies announced through a regulatory filing on June 11 that it has successfully secured a massive telecom infrastructure project worth ₹2,631.14 Crore. BSNL awarded the contract in partnership with Dilip Buildcon.

The project encompasses comprehensive telecom infrastructure development, including:

• Design and supply of network equipment
• Construction and installation services
• Network upgradation activities
• Long-term operation and maintenance

Project Scope and Timeline

The BharatNet project aims to develop middle-mile networks in the Jammu & Kashmir and Ladakh telecom circles. The contract spans an impressive 13-year period with distinct phases:

Construction Phase: 3 years for complete network setup. Maintenance Contract: 10 years of ongoing operational support

Financial Breakdown of the Contract

The ₹2,631 Crore contract involves substantial financial commitments across different categories:

• Capital Expenditure: ₹1,620.50 Crore for infrastructure development
• Operating Expenditure (New Network): ₹972.30 Crore for newly constructed facilities
• Operating Expenditure (Existing Network): ₹38.33 Crore for current infrastructure maintenance

Company Details

Sterlite Technologies stands as one of India's largest manufacturers in the optical fiber and optical fiber cables sector. The contract was secured through STL Networks, the company's demerged Global Services business unit.

The company operates through two primary business segments:

• Optical Networking division
• Digital services division

Full Year FY25 Financial Summary

Revenue

• Q4 FY25: ₹1,052 Crore
• Full FY25: ₹3,996 Crore across all business units

EBITDA

• EBITDA Margin: 13.8% for the full year
• EBITDA Value: ₹146 Crore (highest in 6 quarters)

EBITDA Margins

The company achieved its best EBITDA margin performance in recent quarters, demonstrating improved operational efficiency and cost management.

Growth Drivers and Market Expansion

Enterprise and Data Centre Business Momentum

The company experienced strong demand across key markets:

• Europe: Robust growth in enterprise connectivity solutions
• India: Significant expansion in data center business

STL supported major players in both regions to enhance their end-customer connectivity infrastructure, contributing to the positive movement in Sterlite Tech's share price.

Business Segment Performance

The Enterprise Connectivity and Data Centre businesses emerged as primary growth drivers, showcasing the company's diversified revenue streams beyond traditional optical fiber manufacturing.

Summary

Sterlite Tech's share price surged over 15% following the announcement of a ₹2,631 Crore BharatNet contract from BSNL. The 13-year project involves the comprehensive development of telecom infrastructure in the Jammu & Kashmir and Ladakh regions.

The company's strong Q4 FY25 performance, with 26% revenue growth and a 110% increase in EBITDA for the Optical Networking segment, further supported investor confidence. With full-year revenues of ₹3,996 Crore and improved EBITDA margins of 13.8%, Sterlite Technologies demonstrates solid operational performance.

The significant contract win positions the company for sustained growth over the next decade, with substantial revenue visibility from the BharatNet project. The Sterlite Tech share price rally reflects investor optimism about the company's expanding role in India's digital infrastructure development.