The company said its subsidiary has received a Product Award Letter (PAL) from an international hyperscale partner for the supply of optical connectivity products between FY27 and FY29. Based on prevailing product prices, the total potential value of the agreement is estimated at approximately $1.11 billion.
Under the agreement, purchase orders will be released periodically over the contract tenure, with both parties operating under a reciprocal risk-sharing framework that caps financial liabilities in the event of supply shortages or lower-than-expected demand.
The contract involves the supply of advanced optical connectivity solutions tailored to customer specifications and is scheduled to be executed through March 2029. STL clarified that the deal does not involve any related-party transactions and neither the promoter group nor its associated companies have any interest in the awarding entity.
In an official statement, STL said the agreement strengthens its position in the rapidly expanding AI infrastructure ecosystem, particularly in hyperscale data centre deployments.
“Under this agreement, STL, through its optical solutions, will support the build-out of AI data centre infrastructure in the US for this hyperscaler,” said Ankit Agarwal, Managing Director of STL. “We are enabling the connectivity backbone for AI data centres.”The company highlighted that its in-house R&D capabilities and next-generation optical networking solutions have helped it develop AI-ready connectivity infrastructure.Recently, STL launched its Neuralis AI Data Center portfolio, featuring ultra-high-density pre-terminated fibre cables designed for GPU-intensive AI clusters, along with high-speed data centre interconnect solutions under the Celesta IBR cable series, which support up to 6,912 fibres.
Sterlite Technologies Share Price
Over the past three months, the stock has delivered a sharp rally of more than 175%. It currently commands a market capitalisation of around Rs 20,522 crore.
Technical outlook
On the technical front, the 14-day RSI stands at 81.2, well above the 80 mark typically associated with strongly overbought conditions, indicating the possibility of a near-term pullback. Despite this, the broader trend remains firmly positive, with the stock trading above all eight key simple moving averages (SMAs), signalling sustained bullish momentum and underlying strength.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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