Sterlite Technologies Limited has announced that CRISIL has removed the 'Watch Negative' status and reaffirmed credit ratings across its debt facilities. The development was communicated to stock exchanges on January 8, 2026, in compliance with SEBI listing regulations.

Credit Rating Details

CRISIL has reaffirmed ratings for the company's debt instruments while reducing the total bank loan facilities rated from ₹5,767 crores to ₹4,045 crores. The rating action covers multiple debt categories with specific ratings maintained across different instruments.

Rating Action Impact

The removal of 'Watch Negative' status indicates that CRISIL no longer sees immediate downward pressure on the company's credit profile. The long-term rating of AA-/Negative has been maintained for bank facilities and non-convertible debentures totaling ₹490 crores across three separate issuances.

Debt Facility Reduction

The total rated bank loan facilities have been reduced by ₹1,722 crores, from the previous ₹5,767 crores to the current ₹4,045 crores. This reduction in rated facilities represents a significant change in the company's debt structure under CRISIL's coverage.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating rationale and detailed analysis are available through CRISIL's official documentation for stakeholder reference.

Sterlite Technologies Limited has received an income tax demand order worth ₹36.83 crores from the Assessment Unit of the Income Tax Department, as disclosed in a regulatory filing on January 1, 2026. The company received the order on December 31, 2025, and has announced its intention to challenge the demand through an appeal process.

Details of the Tax Demand Order

The demand order carries the reference number ITBA/AST/S/156/2025-26/1084278320(1) and was issued under section 143(3) read with section 144C(13) and section 144B of the Income-tax Act, 1961. The order pertains to various transfer pricing adjustments that the tax authorities have made to the company's assessments.

Nature of Tax Adjustments

The adjustments identified by the tax authorities cover multiple areas of the company's international transactions with related parties. The primary areas of adjustment include:

• Marketing, HR, administrative, and software development services from various overseas related parties
• Interest on loans and advances
• Corporate guarantee and recovery of SBLC fees
• Interest on outstanding receivables

According to the company's disclosure, these adjustments represent differences in interpretation of tax law rather than any violation of legal requirements.

Company's Response Strategy

Sterlite Technologies has emphasized that the demand order is appealable and that the company possesses a strong legal case supported by precedents of favorable orders in similar situations. The company plans to file an appeal before the Income Tax Appellate Tribunal within the stipulated 60-day period.

Financial Impact Assessment

The company has clarified that while the demand order amounts to ₹36.83 crores, there will be no immediate financial impact on its operations. This is because the company intends to contest the order through the established legal appeal process, which typically provides a stay on the demand during the pendency of the appeal.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding material developments that could potentially affect the company's financial position.