Sterlite Tech Expects Growth Driven by US Data Centre, FTTH Expansion Amid Cost Challenges

Sterlite Technologies Remains Optimistic Amidst Supply Chain Disruptions

Sterlite Technologies (STL) is maintaining a positive outlook on demand, driven by the expansion of data centres in the US and fibre-to-the-home (FTTH) rollouts by telecom operators globally. Despite facing supply-chain disruptions and input cost pressures, the company is banking on a multi-year demand cycle unfolding, underpinned by the convergence of data centre expansion, rural broadband initiatives, and enterprise demand for high-speed, low-latency networks.

STL is seeing consistent momentum across markets, supported by its strategic mix of product portfolio, customer focus, and integrated, end-to-end solutions. The company's order book has grown by almost 110% over the past quarter, indicating a strong growth trajectory. The rapid expansion of data centres, particularly with the shift from CPU to GPU-based architectures that require significantly higher fibre density, is the key growth driver.

According to STL managing director Ankit Agarwal, data centres are expected to account for 30-35% of global fibre demand over the next few years, marking a structural shift in the industry. STL is gearing up to capture this opportunity through its fully integrated capabilities, from glass preform to fibre and cable, as well as a portfolio of nearly 800 patents.

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Demand remains broad-based, with STL seeing steady investments from telecom operators across the US, Europe, and India in fibre-to-the-home networks. In India, large-scale rollouts by leading telcos, along with government-backed projects such as BharatNet, are expected to sustain demand over the next three to four years. The company is also seeing early traction from India's emerging data centre ecosystem.

STL gets involved at the planning stage, advising customers on network capacity, connectivity, and architecture, well before physical deployment begins. It is also introducing advanced fibre technologies, including low-latency solutions such as hollow core fibre, aimed at high-performance computing and financial services applications.

However, the operating environment remains challenging, with the West Asia conflict squeezing supplies. Key inputs such as helium, germanium, and polymers face availability and pricing pressures. STL is focusing on structural cost efficiencies, including recycling initiatives and sustainability-linked measures such as green hydrogen, to improve long-term resilience.

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STL expects to gradually expand its global OFC share, driven by rising demand from data centres and FTTH deployments. The company plans to invest around Rs 500 crore in capacity expansion this fiscal, positioning it well to navigate evolving trade dynamics such as US-China tariffs.