Sterlite Technologies Limited has announced that India Ratings and Research (Ind-Ra) has affirmed the credit rating for its wholly owned subsidiary, Sterlite Tech Cables Solutions Limited. The company disclosed this information to stock exchanges in compliance with regulatory requirements under SEBI listing obligations.

Credit Rating Details

India Ratings and Research has affirmed the ratings on Sterlite Tech Cables Solutions Limited's bank loan facilities with the following parameters:

Facility Size Adjustment

The current rating affirmation covers bank loan facilities worth ₹3,080.00 million, representing a reduction from the previous facility size of ₹3,380.00 million. This adjustment in facility size demonstrates active management of the subsidiary's debt portfolio while maintaining the same credit rating level.

Rating Significance

The IND AA-/Stable rating with IND A1+ designation indicates a strong credit profile for Sterlite Tech Cables Solutions Limited. The stable outlook suggests that India Ratings expects the subsidiary to maintain its current credit quality over the rating horizon. The rating agency has made detailed rationale available through their official press release for stakeholders seeking comprehensive analysis.

Regulatory Compliance

This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement demonstrates the company's commitment to maintaining transparency with investors and regulatory authorities regarding material developments affecting its subsidiaries.

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.