Sterlite Technologies upgraded its full-year EBITDA margin guidance for FY27 to 23%, up from the previously stated 20%, following a record-breaking first quarter performance. The connectivity solutions provider delivered consolidated revenue of ₹1,910 crore in Q1FY27, an 87% year-on-year surge, while consolidated net profit jumped to ₹197 crore from ₹10 crore in the corresponding period last year. This operational excellence was driven by robust demand in the data center segment, which now contributes 21% of total revenue compared to just 1% in FY26, and improved capacity utilization across its global manufacturing footprint.

The Board of Directors approved the unaudited financial results on July 24, 2026, after review by statutory auditors Price Waterhouse Chartered Accountants LLP. Group Chief Financial Officer Ajay Jhanjhari highlighted that the company achieved a net cash position of ₹483 crore post-QIP, effectively eliminating net debt. Credit rating agencies responded positively, with CRISIL revising its outlook to 'Stable' and ICRA upgrading the long-term rating to 'AA (Stable)'.

Financial Performance and Guidance

Sterlite Technologies demonstrated significant operating leverage in Q1FY27, with EBITDA rising 184% year-on-year to ₹397 crore. The margin expansion to 20.8% in the quarter prompted management to raise the full-year outlook. CFO Ajay Jhanjhari attributed this to disciplined cost management, improved product mix, and higher contributions from high-margin integrated connectivity solutions.

Managing Director Ankit Agarwal noted that gross margins faced some pressure due to increased input costs for raw materials like germanium and polyethylene. However, the company is actively diversifying suppliers and reducing germanium consumption through technological advancements to mitigate these impacts in subsequent quarters.

Order Book and Strategic Wins

The open order book expanded to a record ₹18,618 crore, a 2.4x increase from the previous fiscal year’s total. This includes a landmark multi-year contract worth US$ 1.11 billion (over ₹10,000 crore) to supply optical connectivity products for next-generation AI data centers through FY29. Additionally, the company secured multiple hyperscaler orders worth over US$ 100 million for its Neuralis portfolio.

Of the total order book, ₹2,228 crore is slated for execution in Q2FY27, with the remaining ₹16,390 crore scheduled for Q3FY27 and beyond. North America emerged as the primary growth engine, contributing 54% of quarterly revenue, up from 39% in FY26. Europe contributed 25%, while the rest of the world accounted for 22%.

Innovation and Capacity Expansion

Sterlite Technologies continues to invest heavily in technology and capacity. The company plans to invest approximately ₹500 crore annually over the next three years (totaling ₹1,500 crore) for debottlenecking and equipment upgrades across glass, fiber, cable, and connectivity segments. Key innovations include the launch of CONCAT, a spliceless plug-and-play solution that reduces FTTH installation labor costs by up to 71%, and US Conec-certified Multi-Core Fiber (MCF) pre-terminated solutions.

The company also resolved a European patent dispute with Fujikura regarding its Celesta cable family, removing legal uncertainty around these products. With a global ex-China optical fiber cable market share of 9% and optical connectivity attach rates rising to 16%, Sterlite aims to increase its attach rate to 25% by the end of FY27.

What the Numbers Show

The divergence between revenue growth (87%) and EBITDA growth (184%) underscores significant operating leverage as fixed costs are spread over a larger revenue base. The strategic pivot towards data centers, which are expected to constitute 50% of revenues in FY27 (up from 30% prior guidance), indicates a structural shift in the company’s revenue mix towards higher-margin segments. This transition, combined with the debt-free balance sheet, positions Sterlite Technologies to capitalize on the multi-year AI infrastructure build-out cycle with enhanced financial flexibility.

Sterlite Technologies Limited has filed its Annual Report for FY 2025-26 with the stock exchanges and has issued the Notice of its 27th Annual General Meeting (AGM), scheduled to be held on Wednesday, August 19, 2026 at 9:30 a.m. (IST) through Video Conferencing (VC) / Other Audio Visual Means (OAVM). The filing was made on July 24, 2026, in compliance with the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

FY26 Financial Performance at a Glance

FY26 marked a strong recovery for the company, with revenue growth, improving margins, and a return to profitability on a consolidated basis. The following table summarises the key consolidated financial metrics:

On a standalone basis, FY26 closed with revenues of ₹2,446 crore, EBITDA of ₹332 crore, net profit of ₹2 crore, and EBITDA margins of 14%.

Segment-Wise Performance

The company operates through two primary business segments — Optical Networking Business (ONB) and STL Digital.

ONB's EBITDA of ₹606 crore represented a 31% increase over the previous year, driven by higher sales and a favourable regional mix. STL Digital achieved full-year EBITDA positivity in FY26, welcoming 9 new logos and expanding its global footprint to 35 partners.

Balance Sheet and Capital Structure

The company's balance sheet showed meaningful improvement in FY26. The following table presents the key balance sheet metrics:

The net debt decreased from ₹1,350 crore as on March 31, 2025 to ₹1,128 crore as on March 31, 2026, due to positive cash generation from operations. Total cash and bank balance, including current investments, stood at ₹699 crore (including earmarked investments of ₹372 crore) at the end of FY26. ROCE improved to 9.4% compared to 3.3% in the previous year.

Finance costs decreased from ₹241 crore in FY25 to ₹224 crore in FY26, primarily due to reduction in debt. Depreciation and amortisation expenses remained broadly stable at ₹313 crore versus ₹316 crore in FY25.

Dividend and Share Capital

The Board of Directors has not recommended a dividend for FY26, citing inadequacy of profits. The paid-up equity share capital as on March 31, 2026 stood at ₹97.6 crore. During the year, the company allotted 4,53,00,000 convertible warrants to Twin Star Overseas Limited (promoter) at a price of ₹110 per warrant, each convertible into one fully paid-up equity share of face value ₹2. The company received a warrant subscription amount of ₹1,24,57,50,000, representing 25% of the Warrants Issue Price.

Key Operational Highlights and Product Innovation

FY26 was characterised by significant product launches and geographic expansion:

• Neuralis — a purpose-built connectivity suite for AI data centres — was launched and subsequently expanded to North America.
• India's first Hollow Core Fibre (HCF) cable was introduced, achieving approximately 46% faster transmission and near-zero latency through an air-core architecture.
• The Intelligently Bonded Ribbon (IBR) cable portfolio was expanded with 1728F and DC-specific higher fibre count variants of 3456F and 6912F.
• The company's Lugoff Manufacturing facility in South Carolina positioned it as a primary partner for US regional broadband and Data Center expansion.
• STL shipped its first Hyperscale High Fibre Count 6912 Indoor/Outdoor cable in FY26.
• Research and development expenditure for the year stood at ₹42 crore.
• Foreign Exchange Actual Inflow: ₹2,114.55 crore; Foreign Exchange Actual Outflow: ₹937.02 crore.

27th AGM Details

The key items of business at the 27th AGM include:

Special business at the AGM includes the re-appointment of Mr. Ankit Agarwal as Managing Director for a period of five consecutive years with effect from October 8, 2026 to October 7, 2031, approval of his remuneration for FY2025-26 as minimum remuneration, approval of commission to Independent Non-executive Directors for FY2025-26, and ratification of the remuneration of the Cost Auditor at ₹1,50,000 (excluding applicable taxes and reimbursement of actual travel and out-of-pocket expenses) for FY 2026-27. Mr. Venkatesh Murthy (DIN: 08567907), Whole-time Director, retires by rotation and offers himself for re-appointment.

The Annual Report, Business Responsibility and Sustainability Report for FY 2025-26, and the Notice of the 27th AGM have been uploaded on the company's website at https://www.stl.tech/ and on the website of KFin Technologies Limited at https://evoting.kfintech.com .