The expansion is expected to increase Sterlite Tech’s installed manufacturing capacity by around 50%, with the additional capacity likely to come on stream by the end of FY29.
At an investor call, the company said it is targeting revenue of ₹20,000 crore and an EBITDA margin of more than 27% by FY29, compared with revenue of ₹4,750 crore and an EBITDA margin of 13.2% in FY26.
This implies more than four-fold revenue growth and a 13.8 percentage point expansion in EBITDA margin over three years. The company expects growth to be driven by its $2 billion order book, expansion in the optical total addressable market, an improving product mix and operating leverage.
Sterlite Tech has also doubled its annual capex run rate to around ₹1,000 crore.
Management said the business is at a pivotal point, with the opportunity set expanding significantly due to the rise of AI data centres. AI data centres have requirements that differ from traditional data centres, including higher AI density and greater demand for interconnection between data centres.
The company said the US data-centre opportunity remains significant, while the Indian market could also see 10G-related opportunity by 2030 from the current 1.5GW. India’s data-centre market could also provide an opportunity for Sterlite Tech to leverage its global relationships in the domestic market.
Sterlite Tech plans to expand its manufacturing capacity to 1.5 times the current level to support its next phase of growth. The company plans to invest around ₹1,000 crore annually, including in a new greenfield manufacturing facility in India.
Brokerage firm CLSA has an ‘Outperform’ rating on Sterlite Tech, with a price target of ₹950 per share.
CLSA expects the company to achieve revenue of around ₹10,400 crore by FY29, with an EBITDA margin of 23%.
Shares of Sterlite Technologies were locked in a 5% upper circuit on Friday.
