STL Q1FY26 Results: Revenue Rises 17% YoY to ₹1,019 Cr, PAT Turns Positive at ₹10 Cr

Mumbai, July 25, 2025 — Sterlite Technologies Ltd (NSE: STLTECH, BSE: 532374) has delivered an outstanding performance for Q1FY26, with 17% year-on-year consolidated revenue growth and a turnaround in net profit, led by strong execution in its optical and digital segments.

During a volatile tariff environment, the company proactively focuses on executing its performance and profitability through product innovation and cost leadership, while building relationships with customers to drive sales in key markets. It utilises a penetration strategy in the US, Europe, and India. The strong customer relationships and segmentation have led to a strong open order book of INR 4,888 Cr., and order intake was strong this quarter at INR 1,529 Cr.

Sterlite Technologies Ltd Share Price Performance

As of July 24, 2025, the company’s share price closed at ₹116.80, representing a 1.67% increase from its previous close of ₹114.88. The share price opened at ₹114.88 and traded between ₹119.00 and ₹112.51, high and low for the same day.

Financial Highlights (₹ in crore)

The company experienced strong Year-on-Year growth in Q1 FY26, with revenues growing by 16.9% to ₹1,019 crore, and EBITDA almost doubling to ₹140 crore. EBITDA margin increased by 540 bps to 13.7%. PAT showed marked improvement at ₹10 crore compared to a loss of ₹48 crore in Q1 FY25 and ₹40 crore in Q4 FY25. The results reflect improved operational efficiency and recovery after the demerger of the Global Services Business.

Segment Performance

Optical Networking Business

The Optical Networking Business experienced solid growth in Q1 FY26, with revenue reaching ₹961 crore, a 18.6% increase from the same period last year. EBITDA grew by 90.3% to ₹137 crore, and EBITDA margin expanded by 340 bps to 14.3%, an indication that profitability improved.

• Strong traction in the US and Europe supported higher volumes and margin expansion.
• Order intake stood at ₹1,529 Cr, with a total open order book of ₹4,888 Cr.
• Attach rate for optical connectivity remained stable at 23%.

STL Digital

In Q1 of FY26, revenue decreased by 9.9% YoY to ₹64 crore. However, EBITDA was positive at ₹1 crore versus a loss of ₹17 crore in the previous year.

• Added 4 new marquee customers, bringing the total to 30.
• Secured multi-million dollar contracts with two leading private customers in healthcare in the Middle East.

Key Corporate Developments

• Innovation: Became the first global company to deploy Multi-Core Fiber (MCF) across both aerial and underground networks. Also conducted India’s first QKD transmission over MCF.
• Sustainability Milestone: Commissioned Maharashtra’s first green hydrogen facility for optical fibre manufacturing, aligning with Net Zero 2030 goals.
• Awards: Won the ET Telecom Award for Impactful IoT Solution of the Year (Sensron).

Management Commentary

“With our trusted global partnerships and continuous product innovation, we are well-positioned for long-term success,” said Ankit Agarwal, Managing Director. “Our AI-led Data Centre expansion and Multi-Core Fibre deployments address the rising global need for high-speed, secure, and scalable connectivity.”

Balance Sheet and Debt Metrics

• Net Debt: ₹1,300 Cr as of June 30, 2025
• Net Debt to Equity: 0.64
• Net Debt to EBITDA: 2.3x
• Security Cover (Book Value): 2.71x (Standalone), 2.19x (Consolidated)

Strategic Outlook

• STL continues to focus on strengthening its optical leadership globally and driving profitable growth in STL Digital.
• The company targets expansion in North America, Europe, and India, with strong emphasis on AI-enabled data centre connectivity, cost efficiency, and ESG compliance.

About Sterlite Technologies Ltd

Sterlite Technologies Ltd. (STL) is a leading provider of optical and digital solutions, listed on the NSE and BSE. It offers end-to-end solutions for 5G, FTTx, rural broadband, and data centres. The company is recognised for its innovative approach and strong commitment to sustainable manufacturing.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/87c664a5-ce46-4e4f-8669-17a892dd489d.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations