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    Sterlite Tech.

    STLTECH
    Telecommunication·29 Apr 2026
    Management Summary

    Sterlite Technologies delivered a strong Q4 FY26, with significant revenue growth and margin expansion, driven by robust order book intake and strategic product launches like Neuralis and Hollow Core Fiber. The company is focused on expanding its market share in OFC and increasing connectivity attach rates, particularly in the data center segment. Despite challenges from raw material constraints and geopolitical cost pressures, management expressed confidence in continued margin expansion and growth, supported by a strong order pipeline and focus on long-term contracts.

    Highlights

    6

    • Q4 FY26 Revenue of INR 1,441 crores, up 37% YoY, demonstrating strong momentum.

    • EBITDA margins expanded to 15.1% in Q4 FY26, driven by higher utilization and better product mix.

    • Full year FY26 revenue grew to INR 4,745 crores, with EBITDA up 39% YoY to INR 628 crores, and margin improving to 13.2%.

    • PAT turned positive in Q4 and for the full year, reflecting improved profitability.

    • Open order book reached INR 7,309 crores in FY26, a 67% YoY increase, with INR 1,468 crores slated for Q1 FY27 execution.

    • Launched Neuralis, a purpose-built portfolio for AI-Era data centers, and India's first Hollow Core Fiber (HCF) cable.

    Concerns

    3

    • Raw material constraints (germanium and helium) continue to be a challenge, impacting availability and keeping costs high.

    • New near-term cost pressures from geopolitical disruption, particularly impacting helium and polymer inputs.

    • US tariff impacts, though moderating, still affect margins, with a slight impact in Q4 FY26 due to tariff reduction.

    Key financials

    Metrics

    6

    Periods

    3

    Headline

    1
    • PAT
      —

    Q4 FY26

    2
    • Revenue
      ₹1,441 Cr
      YoY+37%
    • EBITDA Margin
      15.1%

    FY26

    3
    • Revenue
      ₹4,745 Cr
    • EBITDA
      ₹628 Cr
      YoY+39%
    • EBITDA Margin
      13.2%

    Order Book

    high confidence

    Total Value

    ₹ 7,309 crores

    as of 2026-03-31

    quantified
    67.0% YoY

    Execution

    INR 1,468 crores are slated for execution in Q1 FY27, while the remaining order is scheduled for execution over Q2 FY27 and beyond.

    "The order book is well diversified with a healthy mix of order intakes from all customer segments and product categories across regions, providing strong revenue visibility."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹1,128 crores · 1.3x EBITDA

    Guidance & targets

    6
    CategoryTargetPriority
    Profitability
    EBITDA Margin
    20%
    		High
    Revenue
    Enterprise and Data Center segment revenue contribution
    30%
    		High
    Debt
    Net Debt to EBITDA
    below 1.2x
    		High
    Market Growth
    North America regional CAGR
    15%
    		High
    Market Growth
    India optical cable demand growth
    11%
    		High
    Capacity
    India data center installed capacity
    8 gigawatts
    		High

    Raw material availability and cost trends

    next quarter
    CurrentAvailability is a challenge, costs are high
    TargetImprovement in availability and moderation of costs

    Why it matters

    Directly impacts production capacity, cost of goods sold, and overall profitability.

    And that is something that continues to be a challenge, but we do expect it to improve quarter-on-quarter.

    How to verify

    qa_highlights[topic='Raw material availability and cost (germanium/helium)']

    Risks & concerns

    3
    RiskSeverity

    Raw material availability and cost inflation (germanium, helium, polymer)

    Availability of germanium and helium remains a challenge, with costs remaining high; geopolitical disruptions also impacting polymer inputs. — Management acknowledged

    medium

    US tariff impacts on margins

    Q4 FY26 saw a slight impact from tariff reductions, but Q1 FY27 is expected to see a positive impact. — Management acknowledged

    low

    Prysmian cables litigation

    Appeal filed in September 2025, company believes it has a strong case, with potential for further appeals up to the Supreme Court. — Management acknowledged

    medium

    Q&A highlights

    7

    “So the costs continue to be quite high or very high. But as I said, more importantly for us is getting the availability itself. And that is something that continues to be a challenge, but we do expect it to improve quarter-on-quarter.”

    Highlights ongoing supply chain challenges and cost pressures for critical raw materials, which could impact future margins and production.

    asked by Aniruddha Pandhare

    2 min read5 chapters

    Detailed Narrative

    01

    Q4 FY26 Financial Performance Overview

    Sterlite Technologies reported a strong Q4 FY26, with revenue reaching INR 1,441 crores, marking a 37% year-on-year growth. The company's EBITDA margins expanded to 15.1% in Q4, attributed to higher utilization and a favorable product mix. For the full fiscal year 2026, revenue stood at INR 4,745 crores, with EBITDA increasing by 39% year-on-year to INR 628 crores, and the full-year margin improving to 13.2%. PAT also turned positive for both the quarter and the full year, reflecting enhanced profitability and execution.

    02

    Robust Order Book and Market Position

    The company's open order book demonstrated strong momentum, standing at INR 7,309 crores in FY26, a significant 67% increase from INR 4,378 crores in FY25. Order inflows for FY26 more than doubled to INR 7,687 crores, up 109% year-on-year. Of the current order book, INR 1,468 crores are scheduled for execution in Q1 FY27, with the remainder extending into Q2 FY27 and beyond. This robust pipeline provides strong revenue visibility and reinforces market confidence across diverse customer segments and product categories.

    03

    Strategic Focus on Data Centers and AI Infrastructure

    STL is strategically positioned at the intersection of FTTx, data centers, and 5G investment cycles. The company launched Neuralis, a purpose-built portfolio for AI-Era data centers, and India's first Hollow Core Fiber (HCF) cable, which reduces latency by 35-40%. These innovations, along with Multi-Core Fiber technology, are designed to meet the rapidly evolving demands of hyperscalers and next-generation data centers. The company aims to scale the Enterprise and Data Center segment to contribute 30% of revenues in the current fiscal year (FY27).

    04

    Capital Allocation and Debt Management

    The company maintains a disciplined approach to capital allocation. Net debt stood at INR 1,128 crores in FY26, with a net debt to EBITDA ratio of 1.3x, comfortably below the previous target of 2x and moving towards a revised ambition of below 1.2x. Management indicated an approximate investment of INR 500 crores in the near term for technology leadership and upgrading its asset base to support high-value data center portfolio offerings.

    05

    Challenges and Outlook

    Despite strong performance, STL faces ongoing challenges, including high costs and availability constraints for critical raw materials like germanium and helium. New near-term cost pressures are also emerging from geopolitical disruptions impacting polymer inputs. However, management expects these constraints to ease quarter-on-quarter. The company anticipates a positive impact on margins in Q1 FY27 from moderating US tariffs and remains focused on achieving a 20% EBITDA margin by the end of the current fiscal year (FY27).

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.