Sterlite Technologies’ shares rose nearly 17% after winning a ₹2,631 crore BharatNet contract with BSNL. The deal covers network deployment and maintenance across J&K and Ladakh.
The share price of Sterlite Technologies jumped nearly 17% on Thursday as the company received a work order worth ₹2,631.14 crore. Sterlite Technologies witnessed its sharpest single-day rally in almost three years. As of 11:53 am IST, the stock was trading at ₹86.40, up by 12.52%. On a year-to-date basis, the stock has declined by 25.47% while in the last month it has recovered by 27.88%.
Sterlite Technologies Limited (STL) has announced the signing of a significant agreement with Bharat Sanchar Nigam Limited (BSNL) for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network under the BharatNet project. This contract, specifically for the Jammu & Kashmir and Ladakh Telecom Circles (Package - 13), was entered into on June 11, 2025, in a consortium with Dilip Buildcon Limited.
The nature of the order involves the full lifecycle of network deployment and maintenance. The time period associated with this extensive contract includes a three-year phase for construction, followed by a ten-year maintenance contract. The maintenance contract specifies an annual charge of 5.5% of the capital expenditure (capex) for the first five years, increasing to 6.5% per annum of capex for the subsequent five years.
The broad commercial consideration or size of this order amounts to ₹2,631.14 crores, which is inclusive of GST. This total comprises a capex of ₹1,620.50 crores, an operational expenditure (opex) of ₹972.30 crores for the newly constructed network, and an additional opex of ₹38.33 crores for the existing network. The order was awarded by a domestic entity, BSNL.
It is important to note that STL's Global Services Business, which is the demerged business vertical that entered into this agreement, has been demerged into STL Networks Limited.
By the end of Q4FY25, the company had an order book of ₹4,378 crore.
For the quarter ended March 2025, the company reported a consolidated revenue from operations of ₹1,052 crore, reflecting a year-on-year growth of 24.79% compared to ₹843 crore in the same quarter last year. The consolidated profit after tax stood (continued operation) at ₹5 crore, marking a turnaround from a net loss of ₹93 crore in the corresponding quarter of March 2024.
For the full financial year ended March 2025, the company posted a consolidated revenue from operations of ₹3,996 crore, slightly lower by 2.13% compared to ₹4,083 crore in FY24. The consolidated net loss stood at ₹72 crore, marginally higher than the ₹71 crore loss recorded in the previous year, indicating a 1.41% increase in annual loss.
Sterlite Technologies Limited (STL) operates in the global digital networks industry. The company is a leading integrator of digital networks, providing advanced end-to-end solutions for telecom companies, cloud companies, citizen networks, and large enterprises. Their comprehensive offerings include optical fiber and cables, network software, and services that enable the creation of high-speed, low-latency, and scalable network infrastructures essential for the digital age.
Disclaimer: The article is for informational purposes only and not investment advice.
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