Sterlite Technologies Shares Surge on Major BSNL Contract
New Delhi: Sterlite Technologies Limited, a leading telecom infrastructure company, has secured a significant ₹2631 crore contract from Bharat Sanchar Nigam Limited (BSNL). The announcement propelled the company's shares to a six-month high, reflecting b investor confidence amidst India's expanding digital connectivity drive.
Project Implementation in Jammu & Kashmir and Ladakh
Under this contract, a consortium comprising Sterlite Technologies and Dilip Buildcon will construct the middle-mile network for the BharatNet project in the Jammu & Kashmir and Ladakh telecom circles. Responsibilities encompass network design, supply, construction, installation, upgrades, operation, and maintenance. The project is slated for completion within three years, with the consortium responsible for subsequent network maintenance for ten years.
Detailed Expenditure and Technical Scope
The project's estimated cost includes approximately ₹1620 crore for network construction, ₹972 crore for operations, and ₹38 crore for existing network maintenance. This technically complex project significantly bolsters the Indian government's Digital India initiative.
Strong Share Performance
Following the BSNL contract announcement, Sterlite Technologies shares surged. On Wednesday, the share price increased by 15.21 percent, reaching ₹88.68—a six-month high. This noteworthy surge occurred while the Nifty 50 index experienced a 0.35 percent decline.
Increased Trading Activity
Market analysts observed a trading volume 44 times the 30-day average, indicating b investor response. The Relative Strength Index (RSI) reached 79, suggesting an overbought condition and potential for short-term profit-booking. An RSI above 70 generally indicates recent significant price increases.
Year-to-Date Performance
Despite the recent surge, the company's shares have declined approximately 34.69 percent over the past year. Since the beginning of 2025, the stock had weakened by about 25.60 percent before the positive impact of this new project.
Brokerage and Analyst Opinions
According to Bloomberg data, two out of three analysts tracking Sterlite Technologies have given a 'buy' rating, while one recommends a 'hold'. Experts believe this contract will sustainably improve the company's revenue and profitability, particularly given the rising demand for optical fiber-based networks.
Boosting Digital India
The BharatNet project is a cornerstone of the government's Digital India initiative, aiming to provide high-speed broadband connectivity to remote and underserved areas. The involvement of experienced and technologically capable companies like Sterlite Technologies ensures timely and high-quality implementation.
Sterlite Technologies' Position
Sterlite Technologies Limited is a leading Indian provider of optical fiber and networking solutions, focusing on optical connectivity, data networks, and integrated network solutions. The company has a b domestic and international presence, successfully completing numerous government and private projects globally.
Future Outlook
Analysts anticipate the contract will strengthen the company's balance sheet and potentially lead to positive mid-term share price growth. However, investors should exercise caution due to market volatility and conduct thorough due diligence, considering factors like recent financial reports, order books, profit margins, and debt levels.
