Sterlite Tech signs a three-year, ~USD 288 million cable supply deal — its third order filing in August
An international hyperscaler takes high-density optical fibre cable over CY2027–29 with capped mutual liabilities. Aug 28 close: ₹723.20, just under the ₹729 52-week high.
₹723.20
Aug 28 · −0.8% from 52-wk high ₹729
LARGE-CAP
by market cap ≈ ₹37,165 Cr
~USD 288 million
supply over CY2027–29, extendable 2 yrs
₹1,910 Cr
consolidated · +87.4% YoY
₹197 Cr
OPM 20.2% · EPS ₹4.03
42.29%
21.73 Cr shares, as of Jul 16
A long-term supply agreement with a "Leading hyperscaler"
STL signs a long-term contract worth approximately USD 288 million with an unnamed international hyperscaler
In a Regulation 30 filing that reached the exchange on Saturday, August 29 at 20:14 IST — after market close, Sterlite Technologies disclosed a Long Term Supply Agreement with an entity it describes only as a "Leading hyperscaler", an international counterparty. The contract allocates high-density optical fibre cable, made to customer specification, in each calendar year from CY2027 to CY2029, extendable by a further two years with mutual consent. Purchase orders will be released periodically during the contract period. Broad consideration: approximately USD 288 million. The company states no promoter-group interest in the counterparty and that the contract is not a related-party transaction.
Read:The market has not yet traded on this: the filing landed after Friday's close (Aug 28 was the last session in the price data), so the first tradable session is Monday, August 31. Supply begins in calendar 2027 — the agreement is about multi-year demand visibility, not near-term revenue.
BSE filing — Award/Receipt of Order, Aug 29, 2026The agreement establishes a reciprocal risk-sharing framework by defining mutual, capped financial liabilities for both parties in the event of demand shortfalls or supply capacity shortages
— STL Regulation 30 filing, Annexure A, Aug 29, 2026
That clause is the most unusual disclosure in the annexure, and it cuts both ways. If the hyperscaler's demand falls short of the annual allocation, STL has a defined — but capped — financial claim; if STL cannot supply the contracted capacity, the customer does. It is protection with a ceiling, not a take-or-pay guarantee. The filing states the consideration only as an approximation in dollars and does not name the buyer, break the USD 288 million down by year, or state a rupee equivalent — so the per-year revenue contribution is not derivable from the disclosure itself.
The context that matters: this is STL's third supply-agreement filing in four weeks. On August 1 it disclosed a multi-year supply agreement worth approximately ₹960 Cr (two years, extendable by two) with an unnamed "Domestic Telecom Operator"; on August 5, an international long-term supply agreement of approximately USD 210 million for high-density optical fibre cable from an unnamed "Leading telecom infrastructure company". All three filings disclosed values; at roughly USD 288 million over three calendar years, extendable by a further two on mutual consent, the hyperscaler deal is the largest of the three and carries the longest potential tenor. Separately, exchange records show Motilal Oswal Mutual Fund schemes filing acquisition disclosures for STL shares under SEBI takeover regulations on July 8 and August 22.
A 44% run into the announcement
The stock enters Monday's session already stretched: from the July 20 close of ₹503.25 to ₹723.20 on August 28 is a +43.7% move in six weeks, ending within 0.8% of the 52-week adjusted high of ₹729 set the same day. The recent order filings were received warmly but not euphorically — the August 1 domestic-operator agreement (filed Saturday night) saw a +5.0% first-session reaction on August 3, while the August 5 infrastructure-company order was met with −0.3% on August 6. Q1 results on July 24, filed mid-session, closed that day +3.2%. Whatever Monday brings will be the market's first verdict on the hyperscaler deal itself.
The quarter before the contract: revenue +87%, margin at 20%
The five-quarter arc explains why order news moves this stock. Through FY26, consolidated net profit hovered near zero — ₹10 Cr, ₹4 Cr, a ₹17 Cr loss in Q3, ₹59 Cr in Q4. Then Q1 FY27 delivered ₹1,910 Cr of revenue (+87.4% over the ₹1,019 Cr a year earlier) with operating margin at 20.2% and ₹197 Cr of net profit. The balance sheet was reinforced along the way: a ₹1,500 Cr QIP completed July 1 (2.57 crore shares at ₹583.01 each — below Friday's close), on top of a ₹498.30 Cr preferential warrants issue whose monitoring agency reported no deviation in use of proceeds for the June quarter.
As stored in exchange filings; EPS as reported per quarter.
The case for caution sits in the same table. One quarter of 20% margins follows a full year in which the company barely broke even and posted a loss quarter — the execution track record the hyperscaler contract will be delivered against. Delivery does not begin until calendar 2027, purchase orders arrive "periodically" rather than on a fixed schedule, and STL's own liability is triggered if it cannot supply the contracted capacity — the risk-sharing clause obliges the company as much as it protects it. This suggests the contract's value to shareholders depends on capacity readiness through 2027, which the filing itself offers no detail on.
Three unnamed counterparties in four weeks, each with a disclosed value — approximately ₹960 Cr, USD 210 million and USD 288 million — turn an order-flow narrative into something a holder can eventually measure.
The next data points
Monday, Aug 31
The first session in which the market can price the Saturday-night filing. The stock enters it 0.8% below its 52-week high after a six-week, +43.7% run.
Purchase orders
The agreement converts to revenue only as periodic POs are released from CY2027. Watch quarterly disclosures for any order-book or capacity commentary tied to the hyperscaler allocation.
Q2 FY27 results
Whether Q1's ₹1,910 Cr revenue and 20.2% operating margin hold for a second quarter — the difference between a turnaround and a spike.
Further order filings
Three supply agreements were disclosed in August alone — approximately ₹960 Cr, USD 210 million and USD 288 million — all with unnamed counterparties. Any follow-up naming the buyers changes the visibility picture.
The filing gives holders a number they can track: approximately USD 288 million of allocated optical fibre cable demand across CY2027–29, from an international hyperscaler, with a two-year extension option — disclosed against a market capitalisation of roughly ₹37,165 Cr. What it does not give is a buyer's name, an annual breakdown, or any assurance beyond capped mutual liabilities that the allocations will be drawn in full.
The data indicates a company whose operating results inflected in Q1 FY27 and whose order pipeline is filling faster than its disclosures can size it. With the stock near its 52-week high, the market has already paid for a good part of that story; the contract's test — capacity in place, purchase orders arriving on schedule — begins in 2027 and will be graded one quarterly filing at a time.
Informational and educational content only. Not investment advice.