A subsidiary of Sterlite Technologies has received a Product Award Letter (PAL) from a hyperscale partner for the multi-year supply of optical connectivity products. The total potential value of the contract over its tenure is estimated at approximately USD 1.11 billion, based on prevailing selling prices. This strategic agreement covers the supply of optical connectivity products as per customer specifications for AI Data Centre build-outs.

Contract Details

The order has been awarded by an international entity. The agreement includes the allocation of optical connectivity products to be supplied in each Financial Year starting from FY27 to FY29. Purchase orders will be released periodically during the contract period. The deal establishes a reciprocal risk-sharing framework by defining mutual, capped financial liabilities for both parties in the event of demand shortfalls or supply capacity shortages.

Execution Timeline

The multi-year contract is scheduled to be executed up to March 2029. The company confirmed that the promoter, promoter group, or group companies do not have any interest in the entity that awarded the order. Furthermore, the transaction does not fall within related party transactions.

Key Contract Particulars

The following table summarises the key details of the awarded contract:

Strategic Context

Sterlite Technologies Limited (STL) provides connectivity solutions for optical fibers, cables, and data centre networks. The company recently launched the STL Neuralis AI Data Center Portfolio, which includes AI Whitespace solutions utilizing ultra-high-density fiber cables and High-Speed Data Center Interconnect (DCI) Celesta IBR cable series. The company stated that its optical solutions will support building AI data center infrastructure in the US for the hyperscaler.

Sterlite Technologies Limited has announced its financial results for the fiscal year ended March 31, 2026, reporting a return to profitability. The company recorded a net profit of ₹56 crore, a significant turnaround from the net loss of ₹72 crore posted in the previous fiscal year. This recovery was supported by robust revenue growth and improved operational efficiencies across its business segments.

Financial Performance

The company's revenue from operations for FY26 rose to ₹4,745 crore, up from ₹3,996 crore in FY25. Earnings before interest, depreciation, amortization, and exceptional items (EBITDA) increased to ₹628 crore from ₹452 crore in the prior year. Consequently, the EBITDA margin expanded to 13.2% in FY26 compared to 11.3% in FY25.

*Figures are from continued operations.

Order Book and Debt

Sterlite Technologies witnessed a substantial increase in its order book, which grew by 67% to reach ₹7,309 crore in FY26 from ₹4,378 crore in FY25. On the balance sheet front, the company's net debt stood at ₹1,128 crore. The net debt to equity ratio was reported at 0.5, while the net debt to EBITDA ratio was 1.3x.

Segment and Geographical Mix

The revenue mix for FY26 was diversified, with the Telecom & Citizen Networks segment contributing 81% of total revenue, while the Enterprise and Data Centre segment accounted for the remaining 19%. Geographically, the Americas and Europe each contributed 39% of the revenue, while the Rest of the World (ROW) made up 22%.

Strategic Priorities and Outlook

Looking ahead to FY27, Sterlite Technologies has outlined strategic priorities focused on growing its optical fibre cable (OFC) market share and scaling the Enterprise & Data Centre segment. The company aims to drive technology leadership in next-gen optical platforms while maintaining a relentless focus on operational and cost efficiencies to sustain profitability.