Rs 4,378 crore Order Book: Telecom Stock in Focus as Share Price Surge on Rs 2,631 Crore BSNL Maintenance Order
While the stock is still down by 25.47 per cent year-to-date, it has shown a strong recovery of 27.88 per cent over the past month.
Sterlite Technologies Limited (STL), a Small-Cap company in the digital networks segment, witnessed its sharpest single-day rally in nearly three years as its shares soared by 16.95 per cent on Thursday. The rally followed the announcement of a major contract win from Bharat Sanchar Nigam Limited (BSNL) under the BharatNet project. While the stock is still down by 25.47 per cent year-to-date, it has shown a strong recovery of 27.88 per cent over the past month.
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STL announced that it secured a work order worth Rs 2,631.14 crore in consortium with Dilip Buildcon Limited for the design, installation, operation, and maintenance of the middle-mile network infrastructure for the Jammu & Kashmir and Ladakh telecom circles. This contract, which falls under Package - 13 of the BharatNet initiative, was awarded on June 11, 2025. The agreement includes a three-year construction timeline, followed by a ten-year maintenance commitment.
The financials of the deal are structured around a capex of Rs 1,620.50 crore and an opex of Rs 972.30 crore for the new network, in addition to Rs 38.33 crore in operational expenses for maintaining the existing infrastructure. Maintenance charges will be calculated at 5.5 per cent of capex for the initial five years and 6.5 per cent annually for the remaining period.
This contract was awarded to STL’s Global Services Business, which has now been demerged into STL Networks Limited. This development significantly boosts STL's order book, which stood at Rs 4,378 crore as of the end of Q4FY25.
On the financial front, Sterlite Technologies reported a consolidated revenue of Rs 1,052 crore in Q4FY25, marking a 24.79 per cent year-on-year increase from Rs 843 crore in the same quarter last year. The company recorded a net profit of Rs 5 crore during the quarter, a turnaround from a net loss of Rs 93 crore in Q4FY24. For the full financial year FY25, the company posted a revenue of Rs 3,996 crore, slightly down by 2.13 per cent from Rs 4,083 crore in FY24. However, the net loss widened marginally to Rs 72 crore from Rs 71 crore in the previous fiscal.
Sterlite Technologies is a global digital networks integrator offering end-to-end solutions including optical fiber, cables, network software, and services. These solutions cater to telecom operators, cloud companies, citizen networks, and large enterprises, supporting the development of scalable, high-speed digital infrastructure.
Disclaimer: The article is for informational purposes only and not investment advice.