Historically, Sterlite Technologies has been focused on telecom-driven demand, including 5G network upgrades, fibre-to-the-home, and rural broadband. However, the company is now positioning itself to capture emerging opportunities in the data centre segment.
The data centre segment, which earlier accounted for around 5% of fibre demand, has now grown to 15-20%. The brokerage expects this segment to contribute nearly 30% of global optical fibre demand, excluding China, by 2027.
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Optical fibre prices have risen materially over the past three months, driven by both demand and supply-side factors, according to Yingfeng Communication.
The brokerage added that the next few quarters are likely to be crucial for building the company’s data centre order book.
Shares of Sterlite Technologies were last trading 9.40% higher at ₹219.35. However, the stock remains down 47% from its all-time high of ₹415.
