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Sterlite Tech Shares Soar 800% on $1.2 Billion Long-Term Supply Deal
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CNBC TV18•01-10-2026, 12:15
Sterlite Tech Shares Soar 800% on $1.2 Billion Long-Term Supply Deal
- •Sterlite Technologies Ltd. shares surged 5% after its subsidiary secured a $1.2 billion long-term supply agreement (LTSA) for optical connectivity products.
- •The LTSA spans from CY26 through CY30, with supplies allocated annually based on customer specifications.
- •The agreement includes a reciprocal risk-sharing framework with capped financial liabilities for both parties.
- •This new deal follows a previous $1.11 billion international contract secured in May for multi-year supply of optical connectivity products for AI data center build-outs from FY27 to FY29.
Key Questions Answered
The long-term supply agreement has a total potential value of $1.2 billion and runs through December 2030, with supplies allocated from calendar year 2026 through 2030.
Following the announcement of the $1.2 billion long-term supply agreement on Thursday, October 1, 2026, Sterlite Technologies shares gained around 5%, extending their total 2026 gains to 800%.
The long-term supply agreement features a reciprocal risk-sharing framework that establishes mutually agreed and capped financial liabilities for both parties if demand or supply-capacity shortfalls occur.
