Starlite shares have shown significant growth over the past ten months, increasing by approximately eightfold. Analysts believe that due to the rising demand for data processing centers, increased capacity, strong financial performance, and a large order book, the stock price could more than double its current level.
On Thursday, Starlite Technologies shares crossed the lower bound of the 5 percent price corridor, reaching 757 rupees, which lowered the company's market capitalization below 39,000 crore rupees. However, this asset fell by more than 28 percent from its 52-week high of 1,054.45 rupees, recorded on October 7, 2026. Despite this correction, the shares have grown by almost 795 percent from the 52-week low of 84.65 rupees, recorded on January 27, 2026.
Starlite Technologies reported a year-over-year (YoY) increase in net profit of approximately 128 times, reaching 517 crore rupees compared to 4 crore rupees in the same period last year. Operating income grew by 145 percent year-over-year to 2,529 crore rupees, and EBITDA increased fivefold to 846 crore rupees, with a margin of 27.1 percent. The company's order book reached an all-time high of 35,274 crore rupees.
In the second quarter of fiscal year 27 (Q2FY27), Starlite Technologies showed impressive results: revenue, adjusted EBITDA, and net profit (PAT) grew quarter-over-quarter (QoQ) by 32, 69, and 100 percent, respectively. JM Financial noted a very high long-term growth outlook supported by the record order portfolio worth 35,274 crore rupees. This portfolio includes a large hyperscaler order worth $1.2 billion, a landmark AI data center contract worth $1.11 billion, as well as major domestic telecommunication orders.
The company's management maintains a revenue target of 20,000 crore rupees for fiscal year 29 (FY29) but has raised the EBITDA margin target for FY29 to 30 percent. It is expected that this increased target will result in a higher margin in the remainder of Q2FY27 than what was recorded in Q2FY27. JM Financial forecasts that the company will achieve cumulative growth rates of 51.91 percent for revenue, 302 percent for EBITDA, and 302 percent for PAT between FY26 and FY29E, and reaffirmed its 'Buy' recommendation with a target price of 1,020 rupees.
Nevertheless, analysts highlighted several significant risks, including difficulties in sourcing necessary raw materials, sharp declines in capital expenditures by hyperscalers and data centers, trade barriers such as anti-dumping duties and ongoing trade wars, low capital expenditure intensity in the telecommunications sector, and legal and regulatory risks.
Starlite Technologies is well-positioned to leverage strong global demand for data center and hyperscaler infrastructure due to its robust order book, technological capabilities, and expanding capacity. Nirmal Bang Institutional Equities believes that good profit growth is expected due to a strong execution outlook, the growing contribution of the data center and cloud services business, and continuous margin expansion. The firm forecasts that normalized EBITDA margins will be 26.3 percent in FY27E and 30.9 percent in FY29E, corresponding to an EBITDA CAGR of 42 percent and a PAT CAGR of 53 percent during FY27E–FY29E. They maintain their EV/EBITDA valuation multiple at 20 for FY28E/FY29E and reaffirm their 'Buy' recommendation with a revised target price of 1,544 rupees.
Other brokerage firms have set the following targets: Arihant Capital Markets — 1,229 rupees; Nomura — 1,350 rupees; NuVama Institutional Equities — 1,460 rupees; and CLSA set the highest target at 1,644 rupees, suggesting a potential growth of 117 percent.
