STL Secures Record Rs. 13,100 Crore Q1 Order Intake as AI Data Centres Drive Global Optical Connectivity Demand

Published at : Sep 11, 2026 07:21 AM (IST)

Total Views : 33

STL Secures Record Rs. 13,100 Crore Q1 Order Intake as AI Data Centres Drive Global Optical Connectivity Demand

Sterlite Technologies Limited (STL) reported record order intake of Rs. 13,100 crore in Q1 FY27, supported by strong demand from AI-driven data centres, FTTx and 5G/6G networks. The company also secured a landmark $1.1 billion multiyear hyperscaler deal and multiple $100 million orders for high-fibre-count IBR cable solutions, strengthening its position in the global optical connectivity market.

The Print Times

Sterlite Technologies Limited (STL)  is a global leader in advanced connectivity solutions, providing end-to-end solutions for building AI-ready infrastructure, FTTx, Rural, Enterprise and Data Centre networks. With manufacturing facilities in North America, Europe and Asia, we deliver our solutions in more than 100 countries. Data Centre & Cloud companies, Telecom operators, Internet service providers and Large enterprises collaborate with STL to build their future-ready digital infrastructure.

STL is witnessing strong structural growth opportunities in optical connectivity as FTTx, data centres and 5G/6G networks drive a multiyear investment cycle globally, according to Managing Director Ankit Agarwal during the company's Q1 FY27 earnings conference call held on July 24, 2026.

Agarwal said STL secured orders worth Rs. 13,100 crore in Q1 FY27, representing 1.7 times the total order wins of Rs. 7,687 crore recorded during the entire previous financial year. The order momentum was anchored by a landmark multiyear $1.1 billion deal with a global hyperscaler to supply optical connectivity products for next-generation AI data centres through FY29.

The company also secured multiple $100 million hyperscaler orders for its high-fibre-count IBR cable solutions, along with a strategic order from a major connectivity infrastructure provider for long-haul applications. STL said its order book remains well diversified across customer segments, product categories and regions.

AI and Data Centres Emerging as Major Growth Drivers

STL highlighted the rapid expansion of data centres as one of the strongest drivers of future fibre demand. According to CRU, global optical cable demand from data centres is projected to grow 63% in 2026, driven by hyperscale expansion and AI workloads.

North America's installed data centre capacity is expected to double from 63 GW in 2025 to 126 GW by 2030, while hyperscaler capital expenditure forecasts have increased from $765 billion to $805 billion. STL expects this expansion to increase the total addressable market for optical connectivity.

The company also pointed to the rapid transition in GPU architectures from 400G to 800G and eventually 1.6 terabyte speeds, where copper reaches bandwidth limitations and fibre becomes increasingly important. AI workloads are also generating denser fibre interconnections and increasing fibre intensity per rack.

STL's Neuralis portfolio is positioned to address AI-era data centre requirements, particularly AI white-space connectivity and high-speed data centre interconnects (DCI).
India's Data Centre Capacity Seen Expanding Sevenfold.

India is emerging as a major growth market for optical fibre, with installed data centre capacity expected to increase from approximately 1.6 GW currently to nearly 10 GW by 2031, according to Morgan Stanley.

STL highlighted investments by global hyperscalers and Indian companies, including Google, Meta, Microsoft, TCS, Adani and Reliance. The company also pointed to new data centre deployment plans by Meta and Reliance, including a combined 3 GW deployment in India, while Australia's AirTrunk is planning close to 5 GW of data centre capacity in Maharashtra and Andhra Pradesh.

STL said supportive state and tax incentives, power availability and tax holidays extending up to 2047 are further supporting India's data centre build-out.

With optical cable demand in India projected to grow at 11% CAGR through 2030, the company sees the opportunity as a durable growth trend rather than a cyclical recovery.

North America Expected to Lead Fibre Demand Growth

Global cable demand is projected to grow 8.2% year-on-year in 2026, led by the North American data centre build-out and improving execution in India.

North America is expected to remain the principal growth engine, supported by AI-led data centres, DCI projects and continued FTTH expansion. CRU expects the region to register an 18.6% CAGR between now and 2030, compared with an earlier forecast of 15%.

STL said North America and APAC excluding China remain key focus markets, while it is also seeing positive momentum in India, Southeast Asia and parts of Europe.

FTTx and 5G/6G Add to Long-Term Opportunity

The company said global FTTx deployment is expected to rise from 151 million fibre kilometres in 2025 to around 171 million fibre kilometres by 2030. In the US, more than 140 million homes are expected to be served by fibre by 2030, supported by programmes such as BEAD, while India's BharatNet programme is also supporting fibre deployment.

The global 5G subscriber base is expected to reach 6.4 billion by 2030, with India's 5G subscriptions projected to reach 1.1 billion by 2031. Global 6G subscriptions are forecast to cross 180 million by the end of 2031.

STL said these three investment cycles are creating a structural multiyear tailwind for fibre and connectivity solutions.

Neuralis Portfolio Gains Certification

STL continued to strengthen its technology portfolio during Q1 FY27. Its Neuralis AI data centre portfolio achieved US Conec certification for MMC pre-terminated solutions, enabling a threefold increase in cable density over traditional layouts.

The certification positions STL among the global players offering certified MMC pre-terminated fibre trunks, array cords and assemblies for hyperscalers deploying 800G and beyond.

The company also launched CONCAT, a spliceless plug-and-play optical connectivity solution aimed at significantly reducing FTTH installation costs.

STL's innovation portfolio is supported by more than 785 patents, with nine new patent filings during the quarter.

European Patent Dispute Resolved in STL's Favour

STL also announced a definitive victory in a European patent dispute with Fujikura. The matter has been conclusively resolved in STL's favour, bringing the UK litigation related to its Celesta cable family to a close.

The company said the resolution removes legal uncertainty around the products and clears the path for its data centre and telecom businesses.

STL said its strategic focus for FY27 is increasingly centred on growing revenue from integrated connectivity solutions, while continuing to expand market share and attach rates in its core optical business. With data centres emerging as a critical growth engine, the company is focusing on scaling the segment through technology leadership, operational efficiency and cost discipline.

Published at : Sep 11, 2026 07:21 AM (IST)

Total Views : 33