Shares of Vedanta-backed Sterlite Technologies rallied as much as 5% to their day’s high of Rs 592 on the BSE on Monday after international brokerage CLSA upgraded the stock to Outperform and assigned a target price of Rs 950, implying an upside of 68% from current market levels.

It’s been an unforgettable year for Sterlite Tech shareholders as the stock has rocketed 466% in 2026 alone.

What is CLSA saying?

The brokerage said Sterlite Technologies’ order book surged 155% QoQ to Rs 18,600 crore, pointing to a strong growth outlook. Factoring in the company’s recent Rs 1,500 crore QIP fundraising and the significant Q1 FY27 beat, CLSA raised its forecasts by 7-125% for FY27-29CL. The brokerage now sees Sterlite Technologies delivering a 62% EBITDA CAGR.
Sterlite Tech secured a multi-year contract worth $1.11 billion, or more than Rs 10,000 crore, to supply optical connectivity products for next-generation AI data centres. The company also received multiple hyperscaler orders worth more than $100 million for Neuralis, its integrated data centre solutions portfolio. It also won a strategic order to supply long-haul, dark-fibre high-density micro-cables to a major connectivity infrastructure provider.

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The order wins come as data centres require higher fibre density, faster data transmission and more efficient connectivity systems to handle AI workloads. STL has been positioning itself as a supplier of optical fibre, cables and integrated connectivity products for this buildout.

Sterlite Tech said it achieved a net debt-free balance sheet during the quarter after raising Rs 1,500 crore through a qualified institutional placement.
The company said the fundraise has strengthened its balance sheet and will help support the next phase of growth. Following the improvement in its financial position, CRISIL revised its rating outlook to “Stable”, while ICRA upgraded the company’s credit rating to “AA (Stable)”.The balance-sheet improvement is important for STL as it enters a larger order execution cycle. A stronger capital base gives the company more room to scale production, invest in products and manage working capital as orders rise.

Sterlite Tech Q1 results

Sterlite Technologies reported its strongest quarterly performance in Q1FY27, helped by higher demand for optical connectivity products, growth in its data centre business and a record order book linked to AI-ready digital infrastructure.

The company reported revenue of Rs 1,910 crore for the quarter ended June 30, up 87% from Rs 1,019 crore in the same quarter last year. Sequentially, revenue rose 33% from Rs 1,441 crore in Q4FY26. Profit after tax rose 870% to Rs 197 crore from Rs 10 crore a year earlier. In the March quarter, the company had reported PAT of Rs 59 crore.

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EBITDA rose to Rs 397 crore, compared with Rs 140 crore in Q1 and Rs 218 crore in the previous quarter. EBITDA margin stood at 20.8%, the highest in nearly 20 quarters, helped by a better product mix, operating leverage and higher contribution from the data centre business.

STL Managing Director Ankit Agarwal said Q1 FY27 was the strongest quarter in the company’s history, with record revenue and profitability reflecting the strength of its AI-ready digital infrastructure portfolio and the trust placed by hyperscalers and telecom operators.
He said the rapid scale-up of the Data Center business shows how decisively STL has aligned itself with the AI infrastructure buildout. With a record order book and strong customer trust, the company expects to continue delivering innovative and reliable solutions to support its customers’ growth.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Shares of Dr Lal PathLabs jumped nearly 8% on Monday to hit a new 52-week high after the diagnostics firm reported better-than-expected earnings for the first quarter of FY27, with multiple brokerages raising target prices.

Dr Lal PathLabs shares jumped to a fresh 52-week high of Rs 1,895 apiece on Monday, rising more than 12% in just two sessions. The stock is on track to record its sharpest single-day surge since early May this year.

The company on Friday reported a 28% year-on-year (YoY) increase in consolidated net profit to Rs 169.5 crore for the April-June quarter of FY27, from Rs 132.4 crore in the corresponding quarter of the previous financial year. The firm’s revenue from operations, meanwhile, rose over 19% YoY to Rs 797.7 crore during the quarter under review.

Along with the Q1 results, Dr Lal PathLabs announced an interim dividend of Rs 5 per equity share for the ongoing financial year 2027, with July 30 fixed as the record date to determine the eligibility of shareholders to receive the payout.

Also read |Dr Lal PathLabs posts higher first-quarter profit on healthy demand for tests

Nomura on Dr Lal PathLabs share price

Nomura maintained its ‘Buy’ call on the shares of Dr Lal PathLabs but increased its target price to Rs 2,085 apiece from Rs 1,860 apiece. The latest target price implies an upside potential of 18.5% from the stock’s previous closing price of Rs 1,759.20 apiece.

The international brokerage said that the company’s Q1 earnings came ahead of its estimates. The beat was driven primarily by higher-than-expected realisations, aided by price hikes in the CGHS and ECHS schemes, it said, noting that management indicated that the benefit from the CGHS and ECHS price hikes should continue over the next 2–3 quarters.
For FY27, the company’s management has raised its revenue guidance to mid-teens from early-teens, implying an acceleration in growth on the back of stronger realisation. On margins, management has adopted a more conservative stance, maintaining EBITDA margin guidance at 27–28% as it intends to reinvest in capacity building while prioritising growth, Nomura said. “We, however, model FY27 revenue growth of 16.6% and an EBITDA margin of 28.9%. Beyond network expansion, a target of 12–15 lab additions in FY27, the company is investing in high-end tests, radiology and international market opportunities, with inorganic growth also on the table,” it further said.Nomura revised its FY27 estimates to reflect the strong Q1 results, factoring in higher revenue growth and lower EBITDA margins. Consequently, it raised its FY27F–29 earnings estimates by nearly 6%. “We believe Dr Lal PathLabs’ valuation is underpinned by strong volume growth and a robust balance sheet that supports its acquisition ambitions. We expect Dr Lal PathLabs to trade at least at the upper end of its pre-COVID range of 40–45x one-year-forward EPS. A higher market valuation, versus pre-COVID, stronger earnings growth, 18% EPS CAGR over FY26–29F versus 14% over FY16–19, and a higher dividend payout justify this valuation, in our view,” the international brokerage said.

Nuvama on Dr Lal PathLabs share price

Nuvama also noted that Dr Lal PathLabs beat earnings estimates. It said the company remains on a robust growth path owing to network expansion, 12–15 labs and 2–4 radiology centres in FY27, CGHS and ECHS price hike-led growth, sustained traction in the Delhi NCR market, double-digit growth, and a strong Suburban turnaround, along with a robust balance sheet which could unlock inorganic optionality.

The brokerage raised its earnings estimates for FY27 and FY28. It maintained its ‘Buy’ rating on the stock while increasing its target price to Rs 2,140 apiece. This implies an upside potential of nearly 22%.

JM Financial on Dr Lal PathLabs share price

JM Financial said Dr Lal delivered a strong Q1FY27, beating estimates by a substantial margin and delivering a second consecutive quarter of 15%+ growth. “We remain positive on Dr Lal, supported by its market leadership, structurally superior B2C mix, healthy cash generation and revival of structural growth in the industry,” it said.

The domestic brokerage maintained its ‘Buy’ call on Dr Lal PathLabs shares but increased its target price to Rs 2,195 apiece, implying nearly 25% upside.

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(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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This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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