Sterlite Technologies (STLTECH) investor relations material

Executive summary

• Achieved strong revenue growth in Q3 FY26, with consolidated revenue at INR 1,257 crore, up 26% year-over-year and 22% sequentially, driven by broad-based performance across business segments and continued momentum in optical networking and digital businesses.

• EBITDA margin moderated to 10.3% in Q3 FY26 due to US tariff headwinds, but operational EBITDA improved sequentially for five consecutive quarters.

• Net loss after tax from continuing operations was INR 17 crore for the quarter, impacted by exceptional items and tariff resets.

• Order intake rose 40.3% year-over-year to INR 4,263 crore for 9M FY26, with large-scale data center and Tier-1 North American telco wins.

• Positioned as a global leader in digital connectivity infrastructure, with a stable 8% global ex-China OFC market share and expanding data center and enterprise portfolio.

Financial highlights

• Q3 FY26 consolidated revenue: INR 1,257 crore; 9M FY26: INR 3,311 crore.

• Q3 FY26 EBITDA: INR 129 crore (10.3% margin); 9M FY26 EBITDA: INR 410 crore (12.4% margin).

• Q3 FY26 PAT: INR -17 crore; 9M FY26 PAT: INR -3 crore (before exceptional items).

• Exceptional item: one-time INR 15 crore impact from new labor code.

• Net debt at INR 1,331 crore; debt-to-equity ratio 0.87; net debt-to-EBITDA at 2.58x.

Outlook and guidance

• Expecting continued growth in North America and APAC ex-China, driven by AI-led data centers, DCI builds, and FTTX expansion.

• Targeting enterprise and data center revenue contribution to rise from 20% to 30% in the next 12–18 months.

• Margin recovery anticipated as mitigation measures for tariffs are implemented and new contracts reflect higher costs.

• Strategic priorities include robust financials, technology leadership, and expanding data center product portfolio.

• Management is actively appealing a significant US litigation verdict and the ultimate financial impact is currently indeterminable.