Sterlite Tech Q1 profit jumps 20-fold as record revenue, AI data centre demand lift margins

Broadband technology firm Sterlite Technologies Ltd (STL) on Friday (July 24) reported its strongest-ever quarterly performance for the first quarter of FY27, with net profit surging to ₹197 crore from ₹10 crore a year ago, nearly a 20-fold increase.

Revenue rose 87% year-on-year to a record ₹1,910 crore from ₹1,019 crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed to an all-time high of ₹397 crore, up about 184% from the year-ago quarter.

The company's EBITDA margin expanded to 20.8% from 13.7%, an improvement of 710 basis points year-on-year and the highest level in nearly 20 quarters.

On a sequential basis, revenue increased 32.5% from ₹1,441 crore, while earnings before interest and taxes (EBIT) rose to ₹385 crore from ₹195 crore. EBIT margin improved to 20.2% from 13.5% in the previous quarter.

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Sterlite Technologies said its open order book stood at ₹18,618 crore at the end of the quarter, the highest in its history. During the quarter, Sterlite Technologies completed a ₹1,500 crore Qualified Institutions Placement (QIP). The company said the fund raise enabled it to become net debt-free while providing capital for its next phase of growth.

Among key order wins, Sterlite Technologies secured a multi-year contract worth $1.11 billion (more than ₹10,000 crore) to supply optical connectivity products for next-generation artificial intelligence (AI) data centres.

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It also won multiple hyperscaler orders worth more than $100 million for its Neuralis integrated data centre solutions portfolio and received a strategic order to supply long-haul, dark-fibre high-density micro-cables to a major connectivity infrastructure provider.

On the product development front, the company expanded its AI data centre portfolio with Neuralis, a connectivity suite designed for AI data centres. It also introduced CONCAT, a pre-connectorised plug-and-play solution aimed at reducing on-site labour and installation costs, and developed US Conec-certified MMC Pre-Terminated solutions that provide three times higher cabling density for 800G-plus AI data centre deployments.

STL also announced a favourable outcome in a European patent dispute. The company said the decision reinforces its intellectual property portfolio, which now comprises more than 785 patents, and strengthens its position in optical connectivity markets across the UK and Europe.

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Ankit Agarwal, MD, STL, said, "Q1 FY'27 has been the strongest quarter in STL's history. Our highest-ever revenue and profitability reflect the strength of our AI-ready digital infrastructure portfolio and the trust hyperscalers and telecom operators are placing in us.

The rapid scale-up in our Data Center business, shows how decisively we've aligned with the AI infrastructure buildout. With a record order book and customer trust, we expect to continue delivering innovative, reliable solutions that propel our customers' growth."

Shares of Sterlite Technologies Ltd ended at ₹564.25, up by ₹17.50, or 3.20%, on the BSE.