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532374: Quantum Secure Fibre Breakthrough Will Drive Stronger Outlook

Wireless Shifts, Tariff Pressures And Debt Burdens Will Undermine Stability

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532374
AnalystLowTarget
Not Invested
Published 30 Aug 2025

Update shared on 14 Dec 2025

Fair value Increased 11%
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AnalystLowTarget's Fair Value
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1Y
-16.7%
7D
1.7%

The analyst price target for Sterlite Technologies has been revised upward from ₹106 to ₹118 as analysts factor in slightly faster expected revenue growth, modestly higher profit margins, and a marginally richer future earnings multiple despite a small uptick in the assumed discount rate.

What's in the News

  • Sterlite Technologies signed an MoU with QNu Labs to jointly develop quantum secure communication solutions over optical fibre, integrating Quantum Key Distribution with high capacity multi core fibre networks and targeting global quantum safe deployments (Key Developments).
  • The company successfully demonstrated Quantum Key Distribution over its 4 core Multi Core Fiber, achieving secure key exchange across 170 km alongside 800 Gbps of classical data and over 150 km with 1.8 Tbps traffic, a major milestone for quantum secure optical networks (Key Developments).
  • Sterlite Technologies expanded its multi year partnership with UK based Netomnia to supply end to end FTTH connectivity solutions, supporting Netomnia's plan to reach up to five million premises by 2027 with a 10 Gbps XGS PON full fibre network (Key Developments).
  • The company showcased a Unitube Single Jacket Indoor Fibre Optic Cable using 4 core Multi Core Fiber, certified to EuroClass Cca s2, d1, a1 fire safety standards and designed for high capacity, quantum ready data transfer in data centres and critical indoor infrastructure (Key Developments).
  • A board meeting is scheduled for November 6, 2025 to consider and approve the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025 (Key Developments).

Valuation Changes

  • The consensus analyst price target has increased from ₹106 to ₹118, indicating a moderate upward revision in fair value.
  • The discount rate has edged up slightly from 15.69% to 15.91%, reflecting a marginally higher perceived risk or required return.
  • The revenue growth assumption has risen from 14.41% to 15.48%, suggesting a modest improvement in expected topline expansion.
  • The net profit margin forecast has increased from 7.77% to 8.42%, indicating a moderate upgrade to profitability expectations.
  • The future P/E multiple has moved up marginally from 15.62x to 15.65x, implying a slightly richer valuation on forward earnings.

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