Sterlite Technologies (STLTECH) Q3 25/26 earnings summary

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 and robust order inflows.

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

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

• Strategic focus on optical networking, data center expansion, and technology leadership, with innovation in next-gen fiber and connectivity solutions.

• North America and APAC (ex-China) identified as key growth markets, with significant traction in enterprise and data center business.

Financial highlights

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

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

• Q3 FY26 PAT: INR -17 crore; 9M FY26 PAT: INR -3 crore (before exceptional items); exceptional item of INR 15 crore due to new labor code.

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

• Basic EPS from continuing operations was -₹0.35 for the quarter.

Outlook and guidance

• Expect continued strong demand for optical fiber and connectivity, driven by FTTX, data centers, and 5G cycles.

• Enterprise and data center revenue contribution targeted to rise from 20% to 30% in 12–18 months.

• Margin recovery anticipated as tariff mitigation measures and contract renegotiations take effect over next 2–3 quarters.

• Focus on gaining market share in optical business and driving profitable growth in digital segment.

• The company continues to monitor regulatory changes, especially regarding the new Labour Codes, and will adjust accounting as needed.