Sterlite Technologies (STLTECH) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached INR 1,034 crore with EBITDA of INR 141 crore, reflecting margin expansion and operational efficiency improvements.

• Net profit turned positive, improving from a loss of INR 62 crore in H1 FY25 to a profit of INR 14 crore in H1 FY26.

• Order book surged to INR 5,188 crore, up ~135% year-over-year, providing strong revenue visibility.

• Major contract wins and expansion in North America and Europe, with regained top-tier US telecom customers and new partnerships.

• Continued innovation with 26 new patents filed, launches of the world's slimmest 864F IBR cable, multi-core fiber, and an AI Center of Excellence.

Financial highlights

• Q2 FY26 consolidated revenue: INR 1,034 crore, up 6% YoY; H1 FY26 revenue: INR 2,054 crore; EBITDA margin improved to 13.6% in Q2.

• Net profit for Q2 FY26 at INR 4 crore, reversing a loss of INR 14 crore in Q2 FY25; H1 FY26 net profit at INR 14 crore.

• Optical Networking Business Q2 FY26 revenue at INR 980 crore, EBITDA margin at 13.9%.

• Digital and Technology Solutions Q2 FY26 revenue at INR 65 crore, EBITDA at INR 1 crore, with 33 global clients.

• Net debt at INR 1,313 crore; debt-to-equity ratio at 0.64–0.70; net debt-to-EBITDA at 2.33x.

Outlook and guidance

• Positioned for growth in North America, Europe, and Asia, with strong demand from telecom, data center, and AI-driven segments.

• Global optical cable demand expected to return to growth in 2025, with North America leading at a projected 12% CAGR through 2030.

• Focus on scaling digital business to cash profitability, moving optical business toward 80%+ utilization and 20% EBITDA margins.

• CapEx outlay for FY26 projected at INR 115 crore, with ongoing R&D investments.