Sterlite Technologies Limited (STL) has reported its financial results for the second quarter of fiscal year 2026, showcasing resilience in the face of tariff-related challenges in the US market.

Financial Highlights

STL delivered a Q2 FY26 revenue of Rs 1,034.00 crores, with EBITDA standing at Rs 141.00 crores, translating to a margin of 13.60%. The company's performance was impacted by US tariffs, which reduced margins by approximately 300 basis points.

Strong Order Book

Despite the tariff headwinds, STL secured a robust order intake of Rs 1,340.00 crores during the quarter. The company's total order book now stands at Rs 5,188.00 crores, driven by growing demand from various sectors:

• Fiber-to-the-Home (FTTH) rollouts
• Data center expansion
• 5G infrastructure development globally

Geographical Revenue Distribution

STL's revenue distribution for H1 FY26 showcases its global presence:

The company has made notable progress in the US market, with North America's contribution increasing from 25.00% in the previous year to 33.00% in H1 FY26.

US Market Dynamics

The US market continues to show strong demand, driven by:

• Telecom operators expanding their networks
• Private equity investments in fiber infrastructure
• Data center companies building and connecting facilities
• Upcoming BEAD (Broadband Equity, Access, and Deployment) program rollout for rural America

STL is strategically positioned to serve this market through both its Indian and local US facilities, despite the current tariff challenges.

Technological Advancements

STL has introduced several innovative products to cater to evolving market needs:

1. Multiverse: A multi-core fiber offering 4-7 times more capacity within the same footprint
2. Celesta IBR Cable: The world's slimmest 864-fiber intermittent bonded ribbon cable, optimized for hyperscalers
3. CONCAT: A plug-and-play solution for simplified broadband rollouts in the US

Future Outlook

While facing short-term challenges due to US tariffs, STL remains optimistic about its long-term prospects. The company is focusing on:

• Expanding market share through deeper customer engagement
• Product differentiation
• Strengthening presence in international markets
• Driving technology and cost leadership in the optical segment
• Scaling up the digital business with an emphasis on profitable growth

STL aims to position itself among the global top three players in the optical networking segment while continuing to build scale in its digital business.

As global demand for digital infrastructure continues to grow, driven by AI, cloud computing, and 5G technologies, STL appears well-positioned to capitalize on these opportunities and play a significant role in shaping the future of digital connectivity.

Sterlite Technologies Limited (STL) has received a vote of confidence from ICRA, which has reaffirmed the company's credit ratings across multiple facilities totaling Rs 4,975 crores and 425.15 million euros. This reaffirmation underscores the company's financial stability and creditworthiness in the market.

Key Rating Details

ICRA has maintained its ratings for STL's various financial instruments, reflecting a positive outlook on the company's fiscal health. The ratings breakdown is as follows:

Implications of the Ratings

The reaffirmation of these ratings carries significant implications for Sterlite Technologies:

1. Financial Stability: The ICRA [AA-] rating for long-term facilities indicates a high degree of safety regarding timely servicing of financial obligations, suggesting low credit risk.

2. Short-term Strength: The ICRA [A1+] rating for short-term facilities, including commercial paper, represents the highest level of safety for timely repayment of short-term debts.

3. Investor Confidence: These ratings may bolster investor confidence in STL's financial management and its ability to meet financial commitments.

4. Market Position: The stable outlook reflects ICRA's view that STL is likely to maintain its market position and financial profile in the near term.

Company's Disclosure

In compliance with SEBI regulations, Sterlite Technologies has promptly disclosed this rating information to the stock exchanges. The company's transparency in financial matters is evident from its timely communication of the ICRA ratings to both the National Stock Exchange of India Limited and BSE Limited.

Investors and stakeholders can access the detailed rationale for these ratings on ICRA's official website, providing further insight into the factors contributing to STL's credit assessment.

As the telecommunications and technology sectors continue to evolve, Sterlite Technologies' maintained credit ratings suggest that the company is well-positioned to navigate the financial landscape and potentially capitalize on growth opportunities in its market segments.