Sterlite Technologies (STLTECH) Q3 25/26 earnings summary

Executive summary

• Achieved strong revenue growth in Q3 FY26, with revenue at INR 1,257 crore, up 26% year-over-year, driven by optical networking and digital segments.

• EBITDA for the quarter was INR 129 crore, with margin at 10.3%, impacted by US tariff headwinds but showing operational improvement over five quarters.

• Net loss after tax for Q3 FY26 was INR 17 crore, affected by exceptional items including a INR 15 crore impact from new labor codes.

• 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.

• Continued investment in technology, sustainability, and social responsibility, with multiple awards and ESG achievements.

Financial highlights

• Q3 FY26 revenue: INR 1,257 crore; 9M FY26 revenue: INR 3,311 crore, up 12% year-on-year.

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

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

• Net debt: INR 1,331 crore; Debt/Equity: 0.87; Net Debt/EBITDA: 2.58x.

• Finance costs for the quarter were INR 56 crore; depreciation and amortisation expense was INR 79 crore.

Outlook and guidance

• Expect continued strong demand for fiber and connectivity, especially from AI-led data centers 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.

• Management is appealing a significant US litigation verdict; ultimate financial impact is indeterminable.

• Company continues to monitor regulatory changes, especially regarding new labor codes.