Sterlite Technologies held its Q4 FY26 Earnings Conference Call on April 29, 2026, with Managing Director Ankit Agarwal and Chief Financial Officer Ajay Jhanjhari presenting the company's financial results and strategic outlook. The company reported strong full-year and quarterly performance, underpinned by record order intake, expanding margins, and a sharpened focus on AI data centre and telecom infrastructure markets.

Financial Performance Highlights

The company delivered a strong finish to FY26, with revenue and profitability both improving on a year-on-year basis. CFO Ajay Jhanjhari noted that PAT turned positive in Q4 and for the full year, reflecting improved profitability and execution discipline.

Q4 FY26 EBITDA margins expanded to 15.1%, supported by scale benefits, higher utilization, and a stronger product mix, marking the sixth consecutive quarter of sequential margin improvement. Management guided for EBITDA margins of 20% at the reported level by end of the current fiscal, driven by an expected increase in the Enterprise and Data Centre segment's revenue contribution to 30%.

Board Meeting Outcomes

The Board meeting, held on April 29, 2026, commenced at 9:30 AM and concluded at 1:41 PM. The statutory auditors, M/s. Price Waterhouse Chartered Accountants LLP, issued an unmodified audit opinion on the financial results.

The Board authorized raising funds through equity shares, equity-linked instruments, convertible securities, non-convertible securities, or combinations thereof, via private placement, qualified institutional placements, further public issues, preferential allotments, rights issues, or any combination of these methods. Management clarified this is an enabling resolution taken on a year-on-year basis, with near-term capex plans of approximately INR 500 crores focused on technology leadership and upgrading the asset base to support high-value data centre portfolio offerings.

Order Book and Revenue Visibility

FY26 was characterized by a transformative surge in order intake, providing strong revenue visibility heading into the next fiscal year.

Order momentum was driven by large-scale data centre projects predominantly in North America and long-term orders from Tier 1 telecom operators in India. The open order book is well diversified across customer segments, product categories, and geographies.

Geographic and Segment Mix

The company's revenue mix continued to diversify during FY26. North America's share increased from 25% in FY25 to 39% in FY26, while Europe remained a significant contributor at 40%. The Enterprise and Data Centre segment moderated to 19% of revenues in FY26, primarily due to a decline in the copper business on account of higher LME prices. Management expects this segment to scale up to 30% of revenues in the current fiscal, supported by accelerating AI data centre investments.

On the STL Digital front, FY26 revenue closed at INR 284 crores compared to INR 290 crores in the prior year, while EBITDA improved meaningfully to INR 3 crores, reversing a loss position. Nine new customer logos were added in FY26, taking the total customer base to 35.

Balance Sheet and Debt Position

Net debt to EBITDA stands at 1.3x, comfortably below the earlier target of 2x, with a revised ambition of moving below 1.2x.

Innovation, Technology, and Market Position

Ankit Agarwal highlighted several key innovations during the call. The company launched Neuralis, its flagship AI-Era data centre connectivity portfolio, at Data Center World 2026 in the U.S. The portfolio addresses AI Whitespace connectivity and high-speed DCI requirements, featuring pre-terminated fiber trunks, high-density arrays, Celesta IBR cable scaling up to close to 7,000 fibers, and intelligent enclosures. Manufacturing is supported by a local facility in South Carolina.

The company also launched India's first Hollow Core Fiber (HCF) cable, which is expected to reduce latency by 35% to 40% in the network and supports bandwidth from 800-gig to 106-Terabit and beyond. Additionally, the 654E fiber platform secured its first commercial order, validating customer interest with 30% lower signal loss. The company's total patent count stands at over 780, with 21 new filings during the quarter. Global ex-China OFC market share remained stable at around 8% in FY26.

On raw material constraints, management acknowledged that germanium and helium availability continues to be a challenge, though availability is expected to improve quarter-on-quarter. Regarding the Prysmian cables litigation, the company filed its appeal in September 2025, and management stated it continues to believe it has a strong case. On U.S. tariff refunds, management indicated the total amount paid as tariff is north of INR 100 crores and that the refund process has been initiated, with further updates expected in the next earnings call.

Industry Tailwinds and Strategic Priorities

Management outlined three powerful multi-year investment cycles driving structural demand for optical infrastructure: FTTx, data centres, and 5G. Key data points cited include global FTTx deployments rising from 151 million fiber kilometers in 2025 to 170 million fiber kilometers by 2030, North America installed data centre capacity expected to more than double from 60 gigawatts in 2025 to 115 gigawatts by 2030, and hyperscaler data centre capex expected to increase to USD 762 billion. CRU projects 40% of global growth in optical cable demand from data centres in 2026 alone, with global optical cable demand growth for 2026 upgraded to approximately 6.8% year-on-year. North America is expected to deliver the strongest regional CAGR of 15% through 2030.

For FY27, management's stated priorities include expanding OFC market share, increasing connectivity attach rates, scaling the Enterprise and Data Centre segment contribution, and maintaining technology and cost leadership.

Source: None/Company/INE089C01029/5bb45d0eb6cb4dc9.pdf

Sterlite Technologies Limited has announced the availability of its Q4FY26 earnings call audio recording on the company's official website. The telecommunications infrastructure company informed stock exchanges about the completion of its investor earnings call held on April 29, 2026.

Earnings Call Recording Details

The company has made the audio recording accessible to investors and stakeholders through its official website at stl.tech/download/. The recording can be found under the dedicated section titled 'FINANCIAL RESULTS – QUARTER 4 - INVESTOR EARNINGS CALL RECORDING'.

Regulatory Communication

Sterlite Technologies Limited communicated this development to both major Indian stock exchanges through formal correspondence. The company addressed the National Stock Exchange of India Limited at Exchange Plaza, Bandra Kurla Complex, and BSE Limited at Phirozjee Jeejeebhoy Towers, Dalal Street.

Company Compliance

The notification was signed by Mrunal Asawadekar, Company Secretary & Compliance Officer, with membership number A 24346. The digital signature was authenticated on April 29, 2026, ensuring proper regulatory compliance and transparency in investor communications.

This earnings call recording provides investors with detailed insights into the company's Q4FY26 financial performance and management commentary on business operations and future outlook.