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; strategic focus remains on optical fiber cables, connectivity attach rates, and data center product suites, aiming for top three global optical connectivity position.

• Q4 FY25 EBITDA margin improved to 13.8%, with EBITDA at INR 146 Cr; full-year EBITDA was INR 452 Cr, and margin at 11.3%.

• Net loss from continuing operations for FY25 was INR 72 Cr, with quarterly PAT losses narrowing YoY.

• Completion of the demerger of the global services business into STL Networks Limited (Invenia), now a separate listed entity.

• Emphasis on sustainable, profitable growth, technology leadership, and ESG initiatives, including a net zero commitment by 2030.

Financial highlights

• Q4 FY25 revenue: INR 1,052 Cr; FY25: INR 3,996 Cr; Q4 EBITDA: INR 146 Cr (13.8% margin); FY25 EBITDA: INR 452 Cr (11.3% margin).

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

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

• Order book at INR 4,378 Cr, with EMEA contributing 55% and India 20% of revenues.

• STL Digital Q4 FY25 revenue: INR 78 Cr; EBITDA: INR 5 Cr, maintaining positive momentum.

Outlook and guidance

• Expectation of improved order book traction in Q1 FY26, with spot orders driving near-term growth.

• Targeting EBITDA margin improvement from 14% to 20% as utilization rises from 50% to 70%.

• Focus on reducing net debt to EBITDA ratio from 3x to 2x by year-end through cash generation and margin expansion.

• Data center and enterprise segment targeted to contribute 25% of revenue in coming quarters.

• Well positioned to benefit from global FTTx, data center, and 5G investment cycles.