Why did Sterlite Technologies shares rally 70% in a month and suddenly crash 14%?

Synopsis :- Sterlite Technologies Limited’s stock fell nearly 14 percent in two days after a strong rally, as an FII sold a 1.78 percent stake worth Rs. 126 crore, triggering profit booking and short-term selling pressure.

Sterlite Technologies has been witnessing sharp volatility in its share price, drawing significant attention from investors and market participants. After delivering a strong rally over the past month, the stock has recently experienced a steep correction within a short span. Such swift price movements have sparked discussions across the market regarding the factors influencing the recent trend.

With the market capitalization of Rs. 7,658.35 crore, the shares of Sterlite Technologies Limited were trading at Rs. 156.85, up by 9.19 percent from its previous day’s close price of Rs. 143.70 per equity share. The stock has touched an intraday low of Rs. 141, implying a decrease of 1.88 percent from previous day’s close price.

The stock has rallied an impressive 69.13 percent in the last one month, indicating strong bullish momentum. However, from its recent high of Rs. 163.40 on February 10, 2026, the stock has corrected to today’s low of Rs. 141, reflecting a decline of approximately 13.71 percent from the peak. 

Reason for fall?

The recent decline in Sterlite Technologies Limited’s stock appears to be driven by FII selling pressure after TIAA-CREF Funds’ TIAA CREF Emerging Markets Equity Index Fund, managed by Teachers Advisors (Nuveen affiliate), sold 87.3 lakh shares, representing a 1.78 percent stake, at Rs. 144.81 per share in a deal worth Rs. 126.4 crore. 

Such a sizable stake sale by a foreign institutional investor likely increased supply in the market and weighed on investor sentiment, especially following the stock’s sharp recent rally, triggering profit booking and short-term price correction.

The stock was already in strong demand, having rallied nearly 61 percent over the past month, reflecting robust buying interest and positive momentum. The recent FII stake sale by TIAA-CREF Funds led to a temporary correction due to increased supply and short-term sentiment impact; however, the decline appears to have been absorbed by the market. As the stock has rebounded from its recent low, it suggests that underlying demand remains intact and the broader upward trend continues despite the brief profit-booking phase.

About the Company & Financial

Sterlite Technologies Limited, along with its subsidiaries, operates in the telecom sector, manufacturing and supplying telecom products in India and global markets. The company focuses on designing and producing optical fibres, optical fibre and specialty cables, as well as optical connectivity solutions. It also offers multiverse and access network distribution solutions and operates the Neox communication platform. Founded in 1988, the company is headquartered in Pune, India.

A return on equity (ROE) of about -6.28 percent, a return on capital employed (ROCE) of about 2.86 percent and debt to equity ratio at 0.94 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 614x higher as compared to its industry P/E 46.8x.  

The company reported revenue of Rs. 1,257 crore in Q3FY26, reflecting a strong 26.0 percent YoY growth compared to Rs. 998 crore in Q3FY25. On a sequential basis, revenue increased 21.6 percent QoQ from Rs. 1,034 crore in Q2FY26, indicating healthy improvement in topline performance.

EBITDA stood at Rs. 120 crore in Q3FY26, registering a 13.2 percent YoY growth over Rs. 106 crore in Q3FY25. However, on a QoQ basis, EBITDA declined 7.0 percent from Rs. 129 crore in Q2FY26, suggesting some moderation in operating performance during the quarter.

The company reported a net loss of Rs. 17 crore in Q3FY26, improving from a loss of Rs. 24 crore in Q3FY25, translating into a 29.2 percent YoY reduction in losses. Sequentially, performance weakened compared to a profit of Rs. 4 crore in Q2FY26, marking a negative swing at the bottom line on a QoQ basis.

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