Sterlite Technologies Limited (STL), a leading global optical and digital solutions company, has reported robust financial results for the first quarter of fiscal year 2026, demonstrating strong growth and improved profitability.

Financial Highlights

• Revenue stood at Rs. 1,019.00 crores, marking a 17% year-on-year growth
• EBITDA improved to Rs. 140.00 crores with margins expanding to 13.70%
• Achieved PAT of Rs. 10.00 crores, compared to a loss of Rs. 48.00 crores in Q1 FY25
• Order intake surged nearly 3x to Rs. 1,529.00 crores from Rs. 566.00 crores in Q1 FY25
• Open order book rose to Rs. 4,888.00 crores

Optical Networking Business Performance

The optical networking business generated Rs. 961.00 crores in revenue with a 14.30% EBITDA margin. STL's market share in the global OFC market outside China improved to 7% from 6% in Q1 FY25.

Key Contract Wins and Market Expansion

STL secured significant wins across key markets, including:

• A three-year long-term supply agreement for IBR cables with a leading European telecom operator
• Strong order inflow from top-tier North American operators

Innovation and Product Launches

The company continues to lead in technology and innovation:

• Launched a next-generation data center portfolio
• Introduced India's first multi-core fiber supporting high-capacity AI-ready networks
• Filed 76 new patents last year, taking the total to 740

Digital Business Growth

STL Digital showed promising growth:

• Added four more marquee clients, taking the total to 30 global customers
• Signed multi-year contracts with two leading healthcare providers in the Middle East
• Posted revenue of Rs. 64.00 crores with an open order book of Rs. 313.00 crores
• Achieved EBITDA of Rs. 1.00 crore for the quarter

Market Outlook and Strategy

Ankit Agarwal, Managing Director of STL, expressed optimism about the company's future:

"We are seeing improvement quarter on quarter in terms of inventory utilization and reduction. The actual deployment has been very strong in the US, and we continue to see positive signs with millions of homes that need to be connected."

The company is focusing on expanding its share in priority markets, boosting optical connectivity adoption, and scaling its data center business. STL is also actively working on green initiatives, including a pilot for green hydrogen usage in manufacturing.

Financial Position

The company's net debt stands at Rs. 1,300.00 crores with a debt-to-equity ratio of 0.64x and net debt to EBITDA at 2.3x. Management is focused on bringing the net debt to EBITDA ratio below 2x going forward.

With a strong order book and improving market conditions, particularly in North America and Europe, STL is well-positioned for continued growth and margin expansion in the coming quarters.

Sterlite Technologies Ltd (STL), a leading optical fiber and connectivity solutions provider, has set an ambitious target to boost its EBITDA margin to 18-20% by fiscal year 2026, up from the current 13-14%. The company aims to achieve this goal primarily through increased factory utilization.

Capacity Utilization and Margin Improvement

Managing Director Ankit Agarwal revealed that STL plans to raise its factory utilization from the current 45-50% to over 70% by the third or fourth quarter. Agarwal noted that the company had previously achieved similar margins when operating at 70% utilization, indicating confidence in this strategy.

Enhancing Connectivity Solutions

STL is focusing on enhancing its connectivity solutions business, with plans to increase its attach rate from the current 20-22% to higher levels. This move is expected to contribute to the company's overall growth and profitability.

Data Center Opportunity

The company has identified data centers as a key growth area. With India's data center capacity projected to triple from one gigawatt to three gigawatts by 2030, STL sees significant potential in this sector.

Market Focus

While the United States and Europe remain STL's primary markets, the company also recognizes growth potential in India, particularly through the BharatNet Phase 3 project. However, it's worth noting that India represents less than 5% of the global optical fiber market.

Financial Management

Sterlite Technologies is working to strengthen its financial position by reducing its net debt-to-EBITDA ratio to two times by year-end. This move aims to improve the company's financial health and flexibility.

Potential Partnerships

The company is exploring potential partnerships with Starlink for connectivity requirements, which could open up new avenues for growth and collaboration in the satellite internet sector.

Stock Performance

On the day of the announcement, STL's shares traded 0.84% higher at Rs 127.95, reflecting positive investor sentiment towards the company's strategic plans.

Annual General Meeting

STL has announced its Twenty Sixth Annual General Meeting (AGM) to be held on Wednesday, August 20, 2025, at 10:30 am IST through Video Conferencing/Other Audio-Visual Means. This virtual format aligns with the company's commitment to shareholder engagement while adapting to modern meeting practices.

Sterlite Technologies' ambitious targets and strategic initiatives demonstrate the company's commitment to growth and profitability in the evolving telecommunications and connectivity landscape. As the company works towards its FY26 goals, investors and industry observers will be watching closely to see how these plans translate into financial performance and market position.