Sterlite Technologies (STLTECH) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue reached INR 1,052 Cr, up 25% YoY, with FY25 revenue at INR 3,996 Cr and a strategic focus on optical networking and digital growth.

• Q4 FY25 EBITDA was INR 146 Cr (13.8% margin), the highest in six quarters, with full-year EBITDA at INR 452 Cr and margin improvement.

• Net loss from continuing operations for FY25 was INR 72 Cr, with losses narrowing YoY and no dividend recommended.

• Completed demerger of Global Services business into STL Networks Limited (Invenia), enabling focused growth and portfolio simplification.

• Sustainability and ESG initiatives advanced, including solar capacity, waste diversion, and water recycling.

Financial highlights

• Q4 FY25 revenue: INR 1,052 Cr, up from INR 843 Cr in Q4 FY24; FY25 revenue: INR 3,996 Cr, down from INR 4,083 Cr in FY24.

• Q4 FY25 EBITDA: INR 146 Cr (13.8% margin); FY25 EBITDA: INR 452 Cr (11.3% margin), with margin improvement YoY.

• Q4 FY25 PAT loss narrowed to INR -40 Cr; FY25 PAT at INR -123 Cr; net loss after tax from continuing operations was INR 72 Cr.

• Net debt at FY25: INR 1,350 Cr; debt-to-equity ratio improved to 0.68x from 1.39x YoY.

• Open order book at Q4 FY25: INR 4,378 Cr, with INR 250 Cr reduction due to descoping.

Outlook and guidance

• Targeting EBITDA margin improvement to 20% as utilization rises from 50% to 70%.

• Strategic priorities for FY26: grow optical networking, build STL Digital, and focus on profitable growth.

• Order book for Q1 is INR 667 Cr, with INR 3,710 Cr for the next nine months.

• North America and India expected to lead demand growth in 2025, with global fiber consumption projected to grow 2.7% YoY.

• Focused on reducing net debt to EBITDA ratio from 3 to 2 by end of FY2026 through cash generation and margin expansion.