Sterlite Tech Surges 15% on ₹2,631 Cr BSNL Contract for BharatNet in J&K, Ladakh

Sterlite Technologies Ltd witnessed its sharpest intraday gain in over three years, with shares increasing more than 15% after the company, in consortium with Dilip Buildcon, secured a ₹2,631.14 crore contract from Bharat Sanchar Nigam Limited (BSNL). The agreement, signed on June 11, 2025, propelled the stock to an intraday high of ₹88.68 before settling at a robust premium, underscoring investor optimism over the company’s growth prospects. As of 11:25 AM, the share is trading at ₹85.65, with an increase of ₹11.28%.

Project Scope: BharatNet Middle-Mile Network in J&K and Ladakh

The contract, awarded under BharatNet Phase-III, involves the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile telecom network for the Jammu & Kashmir and Ladakh telecom circles (Package 13). This network is a critical component of the government’s strategy to enhance digital connectivity in remote and underserved regions.

Sterlite Technologies, through its demerged Global Services Business, will lead the consortium, with Dilip Buildcon as its infrastructure partner. The project includes a three-year construction phase and a ten-year maintenance contract, ensuring long-term engagement and steady revenue streams for the company.

Contract Structure and Financial Implications

The total contract value of ₹2,631.14 crore includes ₹1,620.50 crore for capital expenditure, ₹972.30 crore for operational expenditure of the newly constructed network, and ₹38.33 crore for operational expenditure of the existing network. The maintenance contract is structured at 5.5% of capital expenditure per annum for the first five years and 6.5% for the subsequent five years.

This order is expected to bolster Sterlite Technologies’ order book and provide a significant boost to its revenue and profitability outlook. The company’s consolidated revenue for Q4 FY25 stood at ₹1,052 crore, marking a 25% year-on-year increase, while its net loss narrowed to ₹40 crore from ₹82 crore in the same period last year.

Market Reaction and Stock Performance

Sterlite Technologies’ share price jumped over 15% in early trading on June 12, 2025, reflecting strong market sentiment. The stock has gained nearly 50% from its April lows, although it remains down 24% year-to-date, compared to a 6.2% advance in the Nifty 50 index. The contract win has provided a much-needed catalyst for the company, which has faced a challenging year marked by weak investor sentiment and broader sectoral headwinds.

Strategic Significance: Digital Inclusion and Policy Push

The BharatNet project is a cornerstone of the Indian government’s digital inclusion agenda, aiming to deliver high-speed broadband connectivity to every village in the country. The latest phase, with a total outlay of ₹1.39 lakh crore, targets last-mile fibre connectivity across 6.4 lakh villages. The contract in Jammu & Kashmir and Ladakh is particularly significant given the region’s challenging terrain and strategic importance.

This development also aligns with the Centre’s push for greater adoption of BSNL and MTNL services by public agencies, reinforcing public sector telecom players and addressing data security concerns. The 2019 Cabinet mandate, which requires central government ministries and departments to rely on BSNL and MTNL, has been extended to encourage state governments to follow suit.

Broader Sectoral Implications

Sterlite Technologies’ contract win highlights the company’s strong position in the government’s telecom infrastructure roll-out and its ability to secure large-scale, long-term projects. The partnership with Dilip Buildcon further strengthens its execution capabilities, particularly in complex and geographically diverse regions.

The order also signals continued momentum in India’s digital infrastructure sector, with significant opportunities for companies involved in optical fibre, network construction, and maintenance. As the government accelerates its BharatNet roll-out, more such contracts are expected to be awarded across other states and union territories.

Conclusion: A Transformative Deal for Sterlite Technologies

Sterlite Technologies’ ₹2,631.14 crore contract from BSNL marks a transformative milestone for the company, providing a robust order pipeline and reinforcing its leadership in India’s digital infrastructure sector. The project will not only drive revenue growth but also contribute to the nation’s digital inclusion goals, particularly in remote and underserved regions. For investors, the contract serves as a strong validation of Sterlite Technologies’ capabilities and growth potential in a rapidly evolving telecom landscape

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