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 across business segments and a focus on optical networking and digital solutions.

• Positioned at the intersection of FTTX, data centers, and 5G, benefiting from multi-year demand tailwinds in fiber and connectivity.

• Order intake for YTD/9M FY26 reached INR 4,263 crore, up 40.3% year-over-year, with large-scale data center and Tier-1 North American telco wins.

• Continued innovation leadership with launches in multi-core, hollow core, and G.654.E fiber, strategic partnerships for quantum-secure communications, and 23 new patents filed in Q3 FY26.

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

Financial highlights

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

• Q3 EBITDA at INR 129 crore (10.3% margin); 9M/YTD EBITDA at INR 410 crore (12.4% margin), up 35% year-over-year.

• Q3 PAT was a loss of INR 17 crore; 9M/YTD PAT before exceptional items at INR 9 crore.

• Exceptional item: INR 15 crore one-time impact from new labor code.

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

Outlook and guidance

• Expect continued growth in North America and APAC (ex-China), driven by AI-led data centers and FTTX expansion.

• Targeting 30% revenue contribution from enterprise and data center business within 12–18 months.

• Margin recovery anticipated as tariff mitigation measures and local US production ramp up; long-term EBITDA margin target of 20% (excluding tariff impact).

• Order book of INR 5,325 crore provides strong revenue visibility, with INR 988 crore executable next quarter.

• Strategic priorities include robust financials, technology leadership, and expanding data center product portfolio.