Sterlite Technologies Limited Earnings Summary — Q1 FY2027
STL Reports Record Q1 with Highest-Ever Revenue and EBITDA Driven by AI Data Center Boom
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹1,910 Cr is 87.4% higher year-on-year.
- Revenue has compounded at 43.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹197 Cr is 1870.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Operating margin stands at 20.2% in Q1 FY2027.
- Operating margin expanded by 721 bps year-on-year.
- Over the last two years operating margin has expanded by 1282 bps.
- PBT margin is 13.5%.
- Expense growth of 71.9% remained below revenue growth of 87.4%.
- Operating profit of ₹385 Cr is 191.7% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 85/100 (Excellent) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 1,910 | 1,441 | 1,257 | 1,034 | 1,019 | 1,052 | 998 | 1,074 | 872 | 843 |
| Expenses | Accelerating | 1,525 | 1,246 | 1,137 | 905 | 887 | 927 | 892 | 957 | 808 | 812 |
| Operating Profit | Accelerating | 385 | 195 | 120 | 129 | 132 | 125 | 106 | 117 | 64 | 31 |
| Operating Margin | Improving | 20.2% | 13.5% | 9.6% | 12.5% | 12.9% | 11.9% | 10.6% | 10.9% | 7.3% | 3.7% |
| Other Income | Volatile | 12 | 54 | -6 | 12 | 8 | -24 | -4 | 5 | 8 | 24 |
| Interest | Stable | 55 | 63 | 56 | 55 | 50 | 65 | 58 | 62 | 56 | 71 |
| Depreciation | Stable | 85 | 77 | 79 | 80 | 77 | 79 | 80 | 79 | 78 | 81 |
| Profit Before Tax | Volatile | 257 | 109 | -21 | 6 | 13 | -43 | -36 | -19 | -62 | -97 |
| Tax | Volatile | 60 | 50 | -4 | 2 | 3 | -3 | -12 | -5 | -14 | -15 |
| Net Profit | Volatile | 197 | 59 | -17 | 4 | 10 | -40 | -24 | -14 | -48 | -82 |
| Net Margin | Volatile | 10.3% | 4.1% | -1.4% | 0.4% | 1.0% | -3.8% | -2.4% | -1.3% | -5.5% | -9.7% |
Key Takeaways
- Achieved record quarterly financial performance with highest-ever revenue (₹1,910 Cr) and EBITDA (₹397 Cr).
- Secured a massive multi-year landmark award worth $1.11 billion (₹10,000+ Cr) from a hyperscaler for AI data center connectivity.
- Successfully transitioned to a 'net debt-free' balance sheet following a ₹1,500 Cr Qualified Institutional Placement (QIP).
- EBITDA margins reached 20.8%, the highest in nearly 20 quarters, driven by an improved product mix and AI-led demand.
- Open order book reached a record high of ₹18,618 Cr, providing significant revenue visibility for the next 2-3 years.
- Global market share in Optical Fiber Cable (ex-China) increased from 8% to 9% during the quarter.
- Data Center & Cloud segment revenue contribution rose significantly, now representing 39% of total revenue versus 18% in FY26.
Management Guidance
Management is focused on scaling integrated connectivity solutions and the 'Enterprise & DC' segment. They aim to increase the optical connectivity attach rate from 16% to 20% in Q2 and over 25% by Q4 FY27, while maintaining technology leadership in next-gen optical platforms.
Sentiment Shift
Improving
A multi-year downturn appears to have reversed decisively, fueled by a pivot toward AI infrastructure and a cleaned-up balance sheet via equity infusion.
Outlook
The outlook is highly bullish driven by three coinciding investment cycles: AI-led Data Center buildouts, Global FTTx rollouts (BEAD program in US/BharatNet in India), and the 5G/6G transition. North America is expected to lead demand growth with a projected 18.6% CAGR through 2030.
From the Annual Report (Key Quotes)
“Q1 FY'27 has been the strongest quarter in STL's history.”
“The rapid scale-up in our Data Center business shows how decisively we've aligned with the AI infrastructure buildout.”
“The successful fund raise enabled the Company to become net debt free while providing the capital required to accelerate its next phase of growth.”
Official Quarterly Documents
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This summary is AI-generated from Sterlite Technologies Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.