Sterlite Technologies (STLTECH) Q3 24/25 earnings summary

Executive summary

• Strategic focus on growing optical networking, expanding data center product suites, and cost leadership, with positive social and sustainability impacts and over 910,000 lives affected by ESG programs.

• Q3 FY25 revenue at INR 1,261 crores, with narrowing year-over-year losses and improved EBITDA margin at 10.5%.

• Large long-term contracts secured in Americas, UK, Italy, and France, diversifying revenue mix.

• Net loss for Q3 FY25 stood at INR 23-24 crores, with YTD loss at INR 83 crores.

• Social and sustainability initiatives led to significant reductions in carbon footprint, waste, and water usage, with net zero emissions targeted by 2030.

Financial highlights

• Q3 FY25 consolidated revenue: INR 1,261 crores; EBITDA: INR 133 crores (10.5% margin); net loss after tax: INR 23-24 crores.

• Nine-month FY25 revenue: INR 3,892 crores; EBITDA: INR 3,378 crores; net loss after tax: INR 83 crores.

• Optical networking Q3 FY25 revenue: INR 924 crores; EBITDA: INR 119 crores (12.9% margin).

• Global services Q3 FY25 revenue: INR 289 crores; EBITDA: INR 20 crores (6.8% margin).

• Digital segment Q3 FY25 revenue: INR 77 crores; first EBITDA-positive quarter at INR 4 crores.

Outlook and guidance

• Near-term demand softness expected, but medium- to long-term growth driven by data center, AI, and 5G investments.

• Expecting demand recovery in North America as inventory normalizes and BEAD program investments begin in H2 CY25, with larger impact in 2026.

• Data center and enterprise segment expected to continue growing as a share of revenue.

• No specific annual revenue or margin guidance provided; focus on scaling attach rates and reducing debt.

• Demerger of Global Services business expected to complete by Q1 FY26, pending NCLT approval.