Sterlite Technologies Limited (STLTECH)
₹865.90 -1.43% last close, 16 Oct
Q2 FY27 results
📅 Next results: 23 Oct 2026 (board meeting)Sterlite Technologies Limited's board meets on 23 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Sterlite Technologies' revenue was ₹1,910 Cr (+87.3% year on year, +32.5% on the previous quarter), and net profit ₹197 Cr; the operating margin was 20.2%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,910 | +87.3% | +32.5% |
| Operating profit | ₹385 | +191.7% | +97.4% |
| Net profit | ₹197 | — | +233.9% |
| EPS (₹) | 4.03 | — | +233.1% |
| Operating margin | 20.2% | — | — |
STLTECH exchange data
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It closed at its lower price band (circuit) on 16 Oct, one of 9 band closes in about the last 20 sessions.
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Sterlite Technologies Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate received from Registrar and Transfer Agent KFin Technologies Limited confirms that share certificates received for dematerialisation were processed, verified, and cancelled within 15 days. Additionally, depositories' names were substituted in the register of members as required. This is a standard quarterly administrative filing with no operational or financial impact.
- Compliance confirmation under Regulation 74(5) for the quarter ended September 30, 2026
- Certificate issued by Registrar and Transfer Agent KFin Technologies Limited on October 8, 2026
- Confirmation that dematerialisation requests were verified and cancelled within 15 days
Sterlite Technologies Limited's wholly owned subsidiary has bagged a Long-Term Supply Agreement (LTSA) with an estimated potential value of ~$1.2 billion (approx. ₹10,000+ Cr). The contract is awarded by an international hyperscale partner for the supply of optical connectivity products. The supply is scheduled over calendar years CY26 through CY30, implying an annual execution run-rate that is massive relative to STL's FY26 revenue of ₹4,277 Cr. The agreement also includes a reciprocal risk-sharing framework with capped liabilities for demand or supply shortfalls.
- Total potential contract value estimated at ~$1.2 billion over the agreement tenure
- Execution timeline spans from CY2026 to December 2030
- Awarded by an international hyperscale partner for optical connectivity products
- Establishes a reciprocal risk-sharing framework with capped liabilities for supply/demand shortfalls
Sterlite Technologies (STL) has expanded its Neuralis data center portfolio by launching pre-terminated fiber trunk assemblies ranging from 48F to 6912F fibers. The offerings include indoor assemblies (48F to 576F) and ultra-high-density indoor/outdoor assemblies (144F to 6912F) tailored for AI, cloud, and hyperscale data center infrastructure. While targeting high-growth AI capex globally, the announcement did not disclose immediate commercial order values or revenue commitments. STLTECH reported TTM revenue of ₹5,167 Cr and a TTM PAT of ₹237 Cr.
- Launched high-density pre-terminated fiber trunk assemblies ranging from 48F to 6912F
- Indoor trunk portfolio spans 48F to 576F with outer diameters from 5.8 mm to 12.2 mm
- Indoor/outdoor assemblies scale up to 6912 fibers in a compact 32.0 mm outer diameter
- Available in single-mode ITU-T G.657.A2 fiber (200 µm or 250 µm) and OM4 multimode fiber
Sterlite Technologies Limited announced that its Authorization and Allotment Committee approved the allotment of 1,46,191 equity shares under its Employee Stock Option Schemes 2010 and 2016. Following this allotment, the company's total issued share capital increased from 51,39,11,242 to 51,40,57,433 equity shares. The newly allotted shares will rank pari passu with the existing equity shares of the company. The dilution impact on the existing equity base is negligible at less than 0.03%.
- Allotment of 1,46,191 equity shares pursuant to ESOP Scheme 2010 and 2016
- Pre-allotment share capital stood at 51,39,11,242 shares
- Post-allotment share capital increased to 51,40,57,433 shares
- Newly issued shares rank pari passu with existing equity shares
Sterlite Technologies has secured US Optical Fiber Nonconductive Plenum (OFNP) and NFPA 262 certification for its 48 to 576F Intermittently Bonded Ribbon (IBR) cable assembly portfolio. The pre-terminated product is engineered for hyperscale and enterprise AI data center containment zones, reducing on-site splicing requirements. While technically an important product launch targeting high-growth AI infrastructure, no commercial contracts or immediate revenue numbers were disclosed. This expands the company's product basket in North America where STLTECH is recovering profitability (TTM PAT of ₹237 Cr on revenue of ₹5,167 Cr).
- Launched OFNP US-certified 48 to 576F Intermittently Bonded Ribbon (IBR) trunk assemblies
- Secured compliance with NFPA 262 fire safety standard for indoor AI data center cabling
- Targets high-density hyperscale, colocation, and enterprise data center containment pathways
- Commercial order values and production capacity volumes were not disclosed
Sterlite Technologies Limited (STL) unveiled its long-term growth roadmap titled 'Lakshya' during its analyst meet, targeting ₹20,000 crore in annual revenue by FY29 compared to ₹4,277 crore in FY26 (TTM ₹5,167 crore). The growth framework is anchored on expanding optical demand within AI data centers, where fiber intensity per rack increases up to 64x (from 1,000 to 64,000 fibers). STL currently commands approximately 9% of the global optical fiber market outside China, supported by over 785 patents and 10 manufacturing facilities.
- Targeting ₹20,000 crore revenue by FY29 under the new 'Lakshya' strategic roadmap
- AI data center optical fiber density per rack projected to surge 64x to 64,000 fibers on next-gen architecture
- India data center capacity projected to grow from 1.5 GW to 10 GW by 2030 (46% CAGR)
- Currently holds ~9% optical fiber market share outside China with a portfolio of 785+ patents
Sterlite Technologies has unveiled its 'Lakshya FY27-29' growth roadmap, targeting ₹20,000 Cr in revenue and >27% EBITDA margin by FY29 (compared to ~₹4,750 Cr revenue and ~13% EBITDA in FY26). To support this target, the company plans to invest ₹1,000 Cr annually over the next three fiscal years (~₹3,000 Cr total capex) to expand preform, optical fiber, and cable capacities by 50%. The expansion focuses on high-density AI data center connectivity and includes setting up a new greenfield facility for pre-terminated connectivity solutions in India.
- Targeting ₹20,000 Cr revenue by FY29, representing an aggressive ~4x scale-up from FY26 base of ~₹4,750 Cr
- Aiming to expand EBITDA margins from ~13% in FY26 to >27% by FY29 driven by higher-value connectivity products
- Planned capex of ₹1,000 Cr annually across next 3 financial years to boost preform, fiber, and cable capacities by 1.5x
- Setting up a greenfield facility in India for pre-terminated connectivity solutions, creating 3,000+ jobs
- Committing 2% of annual revenue toward technology innovation including Multicore Fiber (MCF) and Co-Packaged Optics (CPO)
Sterlite Technologies' Board has approved a large capital expenditure plan of ~₹3,000 crore to expand its existing manufacturing capacity by approximately 50% by the end of FY29. The expansion aims to capture growing global demand for Optical Fiber Cables (OFC) and connectivity solutions, with current capacity utilization at ~70%. The planned outlay represents ~58% of TTM revenue (₹5,167 crore) and nearly double its net worth (₹1,526 crore). The expansion will be funded through a mix of internal accruals and debt.
- Board approved ₹3,000 crore capex for optical fiber cables and connectivity expansion
- Proposed capacity addition of approximately 50% over existing installed capacity
- Target completion date scheduled by the end of FY29
- Current existing capacity utilization stands at ~70%
- To be financed via internal accruals and/or debt
Sterlite Technologies Limited has approved a major capital expenditure of ~₹3,000 crore to expand its optical fiber cable (OFC) manufacturing capacity by ~50% over existing levels. The expansion is slated for completion by the end of FY29 and will be funded through internal accruals and/or debt. Currently, the company is operating at ~70% capacity utilization. This ₹3,000 crore investment represents ~58% of TTM revenue (₹5,167 crore) and nearly double the current net worth (₹1,526 crore), signaling substantial aggressive capacity additions for global connectivity demand.
- Approved capex of ~₹3,000 crores for existing manufacturing facilities.
- Proposed capacity addition of ~50% over existing installed capacity.
- Project targeted for completion by the end of FY29.
- Existing capacity utilization currently stands at ~70%.
- Mode of financing to be internal accruals and/or debt.
Sterlite Technologies Limited (STL) announced that CRISIL has upgraded its long-term instrument ratings from 'CRISIL AA-/Stable' to 'CRISIL AA/Stable'. The upgrade covers ₹3,564 crore of bank loan facilities (reduced from ₹4,045 crore) and ₹390 crore across three Non-Convertible Debenture (NCD) tranches. Additionally, short-term rating of 'CRISIL A1+' was reaffirmed for ₹100 crore Commercial Paper (CP), while ₹700 crore CP rating was withdrawn.
- Long-term bank loan facilities rating upgraded from 'CRISIL AA-/Stable' to 'CRISIL AA/Stable' on ₹3,564 crore limits (reduced from ₹4,045 crore).
- Three NCD tranches totaling ₹390 crore (₹200 cr, ₹90 cr, and ₹100 cr) upgraded to 'CRISIL AA/Stable'.
- Short-term Commercial Paper rating of ₹100 crore reaffirmed at 'CRISIL A1+', while ₹700 crore CP rating was withdrawn.
Sterlite Technologies Limited informed the exchanges that Crisil ESG Ratings & Analytics Ltd assigned the company an ESG Rating of 59 on August 31, 2026. The rating reflects the company's performance across Environmental, Social, and Governance parameters. Sterlite noted that it did not engage Crisil for the rating, which was independently prepared based on public domain data.
- Crisil ESG Ratings & Analytics assigned an ESG Rating of 59 on August 31, 2026.
- The evaluation was prepared independently from publicly available data without direct company engagement.
- Intimation filed under Regulation 30 of SEBI LODR Regulations.
Sterlite Technologies Limited has scheduled an Investor and Analyst Meet for Thursday, September 3, 2026, at 4:00 PM IST via webinar. The company's senior management will share updates regarding ongoing business operations, strategic priorities, and future outlook. Any presentation delivered during the call will be uploaded to the company's website.
- Investor & Analyst Meet scheduled for September 3, 2026 at 04:00 PM IST
- Format: Virtual meeting conducted via webinar
- Agenda covers company business updates, strategic priorities, and forward outlook
Sterlite Technologies Limited issued a clarification regarding its earlier disclosure dated August 29, 2026, concerning a Long Term Supply Agreement with a leading hyperscaler. The company noted that the agreement was executed by its wholly owned subsidiary rather than the parent entity directly. All other details and commercial terms from the original filing remain unchanged.
- Clarification filed on August 31, 2026 regarding intimation dated August 29, 2026
- Long Term Supply Agreement executed by a wholly owned subsidiary, not the standalone parent entity
- All other terms and details from original disclosure remain unchanged
Sterlite Technologies has secured a major long-term international supply agreement valued at approximately USD 288 million (approx. ₹2,400+ crore) from a leading hyperscaler. The contract covers high-density optical fibre cable products to be supplied over three calendar years from CY2027 to CY2029, with an option to extend by two years. Relative to STL's TTM revenue of ₹5,167 crore, this contract represents ~46% of trailing revenue, providing significant medium-term visibility. The agreement includes a structured reciprocal risk-sharing framework defining capped financial liabilities for both demand and supply deviations.
- Contract value of approximately USD 288 Million with a leading international hyperscaler
- Execution timeline covers 3 calendar years (CY2027 to CY2029), extendable by 2 additional years
- Scope covers periodic delivery allocations for high-density optical fibre cables
- Incorporates mutual capped financial liability clauses for demand shortfalls or supply capacity shortages
Sterlite Technologies Limited (STL) announced progress in its decarbonisation roadmap by transitioning four manufacturing facilities in Chhatrapati Sambhaji Nagar (Aurangabad), Maharashtra, to 100% green power sourced via MSEDCL. This transition is expected to deliver a ~65% market-based Scope 2 emissions reduction across its Optical Fibre (OF) and Optical Fibre Cable (OFC) plants. Additionally, the company integrated 100% Green Hydrogen into glass manufacturing operations and reduced the carbon footprint of its G.657.A2 optical fibre by ~80% from 4.7 kg CO2e/fkm to 0.9 kg CO2e/fkm.
- Transitioned 4 manufacturing plants in Chhatrapati Sambhaji Nagar to 100% green power from solar and wind
- Estimated ~65% market-based Scope 2 emission reduction across participating OF and OFC plants
- Integrated 100% Green Hydrogen into glass manufacturing operations
- Reduced G.657.A2 optical fibre carbon footprint by ~80% to 0.9 kg CO2e/fkm from 4.7 kg CO2e/fkm
Financial Performance
Revenue Growth by Segment
H1 FY26 revenue grew 6% YoY to INR 2,054 Cr from INR 1,946 Cr. Q2 FY26 revenue was INR 1,034 Cr. STL Digital reported Q2 FY26 revenue of INR 65 Cr, up from INR 64 Cr in Q2 FY25.
Geographic Revenue Split
The company has a global presence across 4 continents and 100+ countries. Recent margin improvements were driven by a higher mix of orders from the US and Europe, though US government tariffs have created headwinds.
Profitability Margins
H1 FY26 PAT improved to INR 14 Cr from a loss of INR 62 Cr in H1 FY25. PAT margin for FY25 was -3% post-demerger. Operating margins are expected to recover toward the 15-17% range as capacity utilization improves.
EBITDA Margin
Q2 FY26 EBITDA margin stood at 13.6% (INR 141 Cr), a significant improvement from 11.1% (INR 119 Cr) in Q2 FY25. H1 FY26 EBITDA grew 46% YoY to INR 281 Cr.
Capital Expenditure
Planned CAPEX outlay for the current year is approximately INR 115 Cr, primarily focused on R&D and optical business capabilities.
Credit Rating & Borrowing
CRISIL and ICRA maintain ratings with a 'Stable' outlook. Interest coverage was 1.9x for FY25, improving to 2.8x in Q1 FY26. Net Debt to EBITDA improved to 2.33x in Q2 FY26.
Operational Drivers
Raw Materials
Optical Fiber (OF) and raw materials for Optical Fiber Cable (OFC) manufacturing. Specific material names and percentages are not disclosed, but a spike in raw material costs was cited as a margin drag in FY25.
Capacity Expansion
Sizeable manufacturing capacities across 4 continents. Current utilization is low, but margins are expected to improve as utilization increases to meet demand from US and India projects.
Raw Material Costs
Raw material costs and higher channel inventory in North America materially lowered FY25 margins to 10.4% compared to the historical average of 20.5%.
Manufacturing Efficiency
Capacity utilization is currently a key monitorable; under-absorption of fixed costs due to low utilization has previously constrained profitability.
Strategic Growth
Expected Growth Rate
6%
Growth Strategy
Growth will be achieved through the BEAD programme in the US and BharatNet Phase III in India, expected to start delivery in Q2 FY2027. The strategy includes cost optimization, gaining market share in the Optical business, and scaling the STL Digital segment.
Products & Services
Optical Fibers (OF), Optical Fiber Cables (OFC), 5G wireless technology, Fibre to the 'X' (FTTx), enterprise and data center networks, and digital transformation services.
Brand Portfolio
STL, STL Digital.
New Products/Services
Launched an AI Center of Excellence (COE) and focusing on building capabilities in AI-driven solutions and customer Proof of Concepts (POCs).
Market Expansion
Targeting the US market via the BEAD programme and the Indian market via BharatNet Phase III. Global expansion continues across 100+ countries.
Market Share & Ranking
Leading manufacturer of OFs and OFCs in the Indian market with a strong global market position.
Strategic Alliances
Acquired Mettalurgica Bresciana (Italy) and Clearcomm Group (UK). Maintains a 50% JV in Sterlite Conduspar Industrial Ltd.
External Factors
Industry Trends
The industry is growing at approximately 6% and is shifting toward 5G, rural broadband, and AI-integrated networks. STL is positioning itself as an end-to-end solution provider from fiber manufacturing to software.
Competitive Landscape
Faces intense competition from large global players with diversified manufacturing bases.
Competitive Moat
Moat is built on an integrated value chain (preform to software) and global manufacturing scale. This is sustainable due to high entry barriers in preform manufacturing and long-term customer relationships.
Macro Economic Sensitivity
Highly sensitive to interest rates, which create pressure on demand, and global telecom capex cycles.
Consumer Behavior
Shift toward high-speed data and 5G is driving demand for high-density optical fiber networks.
Geopolitical Risks
US government tariffs on fiber imports are a major risk, mitigated partly by STL's local manufacturing plant in the US.
Regulatory & Governance
Industry Regulations
Subject to US import tariffs and international trade regulations. Compliance with ISO 27001 for data security and social accountability standards.
Environmental Compliance
CSR initiatives like Swashthya Suraksha have impacted 27 lakh lives through hybrid healthcare programs.
Legal Contingencies
A $96.5 million (approx. INR 810 Cr) jury verdict was awarded to Prysmian against STL’s US subsidiary for alleged non-compete violations and trade secret use. The matter is currently under appeal.
Risk Analysis
Key Uncertainties
The outcome of the $96.5 million Prysmian lawsuit and the duration of US tariff headwinds are the primary business uncertainties.
Geographic Concentration Risk
Significant revenue is derived from overseas markets, particularly the US and Europe, making the company vulnerable to regional trade barriers.
Technology Obsolescence Risk
Mitigated by investments in 5G, FTTx, and the new AI Center of Excellence.
Credit & Counterparty Risk
Receivables quality has improved post-demerger of the services business, with NWC/OI dropping to 8.7%.
