Sterlite Technologies (STLTECH) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue reached INR 1,019 crore, up 17% year-over-year, with EBITDA at INR 140 crore and PAT turning positive at INR 10 crore, reflecting significant YoY improvement.

• Strategic focus remains on growing market share in optical fiber cables, expanding data center solutions, and driving technology and cost leadership in the optical domain.

• Order intake for the quarter was INR 1,529 crore, with an open order book of INR 4,888 crore, including multi-year contracts in both Optical Networking and Digital segments.

• Completed demerger of Global Services; STL Networks Limited now a separate legal entity, with listing expected by August/Q2 FY26.

• Investments in technology, sustainability, and social responsibility are core, with strong ESG credentials and a net zero target by 2030.

Financial highlights

• Q1 FY26 consolidated revenue at INR 1,019 crore, EBITDA at INR 140 crore (13.7% margin), and PAT at INR 10 crore, reversing a loss of INR 48 crore in Q1 last year.

• Optical networking business posted Q1 revenue of INR 961 crore and EBITDA of INR 137 crore (14.3% margin), showing significant improvement.

• Digital business reported Q1 revenue of INR 64 crore and EBITDA of INR 1 crore, with an open order book of INR 313 crore.

• Standalone revenue was INR 542 crore, with EBITDA at INR 79 crore and net profit at INR 5 crore.

• Basic and diluted EPS from continuing operations stood at 0.20, up from (1.00) in Q1 FY25.

Outlook and guidance

• Market recovery is underway, with robust demand expected from FTTH, data centers, and 5G rollouts, especially in North America and Europe.

• Utilization rates are improving, with a target to reach 70% for optimal EBITDA margins of 18%-20%.

• Focus on technology and cost leadership to achieve global top 3 position in Optical, and rapid growth in data centre and digital businesses.

• Employee cost as a percentage of sales is targeted at 10%-12% for the year.

• Management remains optimistic about long-term growth, citing strong global partnerships and innovation in high-speed, secure connectivity solutions.