Want to see IN:STLTECH full AI Analyst Report?
Sterlite Technologies Limited (STLTECH) Q2 2027 Earnings Report
IN:STLTECH Q2 2027 EPS Results
- Actual EPS
- INR 7.30
- Consensus EPS
- INR 4.70
- Beat/Miss
- Beat by +INR 2.60
- One Year Ago EPS
- INR 0.10
IN:STLTECH Q2 2027 Revenue Results
- Actual Revenue
- INR 25.29B
- Expected Revenue
- INR 22.37B
- Beat/Miss
- Beat by +INR 2.92B
- YoY Revenue Growth
- +144.58%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/23/2026
- Time
- Before Open
- Conference Call
- Friday, October 23, 2026
IN:STLTECH Upcoming Earnings
Sterlite Technologies Limited's next earnings date is estimated for January 20, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, supported by record quarterly revenue, EBITDA and PAT, substantial order intake, a 4.6x increase in the open order book, rising data center exposure, higher optical connectivity attach rates, improved market share, stronger net cash and an upgraded FY 2029 EBITDA margin target. The company also reported meaningful product, capacity, sustainability and intellectual-property progress. The main challenges were one-time refund benefits, impairment and higher finance costs, working-capital and raw-material constraints, commercialization challenges for emerging fiber technologies, and execution risks in data center projects. Highlights significantly outweighed the lowlights.
Company Guidance
STL reiterated its Lakshya target of INR 20,000 crore in revenue in FY 2029 and upgraded its FY 2029 EBITDA margin target to above 30%, up from 27% earlier; it plans to commit 2% of annual revenue to R&D, expand preform fiber and cable capacities by 50%, and invest around INR 1,000 crore per year through FY 2029, with total CapEx of INR 1,000 crore per year from 2027 to 2029. The company is targeting 50% of revenues from the data center segment in the current fiscal, expects its DC share to be closely close to around 50% and in the 50%-60% share range, and remains focused on driving attach rate to 25% and beyond for the current financial year. It aims to remain in the range of 45-50 days of net working capital cycle, expects hollow-core and multi-core fiber scale to improve in another 1.5-2 years, and remains committed to achieve net zero by 2030.
- Record Q2 and H1 Financial PerformanceQ2 FY 2027 revenue reached INR 2,529 crore, up 145% year-over-year and 32% quarter-over-quarter, while H1 revenue was INR 4,439 crore, up 116% from H1 FY 2026. Q2 operational EBITDA was INR 685 crore with a 27.1% margin, up 624 basis points quarter-over-quarter, and H1 operational EBITDA was INR 1,082 crore at a 24.4% margin. Q2 PAT reached a record INR 517 crore, and H1 PAT was INR 714 crore versus INR 14 crore in H1 FY 2026.
- Underlying Margin ExpansionExcluding the INR 161 crore one-time net gain from a U.S. tariff refund, Q2 operational EBITDA margin was approximately 27%. Management attributed the underlying margin performance to higher capacity utilization, a richer product and customer mix, and an increasing share of high-value optical connectivity.
- Lakshya FY 2029 Margin UpgradeSTL maintained its FY 2029 revenue target of INR 20,000 crore and upgraded its EBITDA margin target to above 30% from 27%. Management cited the stronger order book, increased data center mix and improved attach rate as the basis for greater confidence.
- Record Order Intake and Order BookSTL secured orders worth INR 32,000 crore in H1 FY 2027, roughly 4x the orders won during the whole of FY 2026. The open order book stood at a record INR 35,274 crore, up 4.6x from INR 7,687 crore at the start of FY 2027, with approximately INR 3,021 crore scheduled for execution in Q3 FY 2027.
- Large Hyperscaler AgreementsSTL announced a new five-year agreement with a potential value of $1.2 billion for AI-ready optical solutions, following a $1.11 billion optical connectivity product award letter announced in the prior quarter. Management said these agreements provide multi-year demand visibility with major AI infrastructure players.
- Diversified Customer and Geographic Order BaseThe company signed multi-year supply agreements with major global telecom operators for high-density optical connectivity and assemblies and secured a significant optical cable supply contract with a leading Indian telecom operator. Management said the order book is spread across customer segments, product categories and geographies.
- Improved Global Market ShareSTL's global ex-China optical fiber cable market share increased to 9% in H1 FY 2027 from 7% in H1 FY 2026.
- Higher Connectivity Attach RateOptical connectivity attach rate reached an all-time high of 24% in H1 FY 2027, up from 20% in H1 FY 2026, and was achieved on a much larger optical fiber cable revenue base. Management remains focused on reaching 25% and beyond during the current financial year.
- Data Center Segment MomentumThe data center segment contributed 33% of H1 FY 2027 revenue, and management said STL remains on track to scale the segment to 50% of revenue in the current fiscal year. Management also said it expects data center share to be closely around 50% and is targeting a 50%-60% mix over time.
- Strong North American Revenue ContributionNorth America represented 61% of H1 FY 2027 revenue, driven by demand from AI and cloud infrastructure. Europe contributed 21%, while the rest of the world represented 18%.
- Long-Term Optical Fiber Demand TailwindsManagement highlighted three multi-year demand cycles: data centers, 5G and 6G networks, and fiber-to-the-X deployments. CRU's 2026 data center demand projection was upgraded to 89% year-over-year from 63% previously; global 5G subscriptions are projected to reach 6.4 billion by 2031, including 1 billion in India; global 6G subscriptions are forecast to exceed 180 million by the end of 2031; and FTTX deployments are expected to increase from 157 million fiber kilometers in 2025 to roughly 166 million by 2030.
- AI Data Center Infrastructure OpportunityGlobal data center capacity is expected to grow from about 82 GW to about 219 GW by 2030, with over 70% of total demand coming from AI-specific infrastructure. Fiber per switch rack was described as increasing from 500 fibers in the cloud era to 12,000 in current 72-GPU AI nodes and toward 16,000 in upcoming architectures.
- Indian Data Center ExpansionIndia's live data center capacity was described as approximately 1.8 GW, following 258 GW of additions in the first half of FY 2027 as stated on the call, and is expected to increase nearly six-fold to almost 10.5 GW by 2031. Management cited commitments from hyperscalers, Indian conglomerates and data center operators, including almost 3 GW of development plans from Meta and Reliance and AirTrunk's commitment of almost $30 billion for 5 GW of capacity across Maharashtra and Andhra Pradesh.
- Global Fiber Market Growth OutlookCRU expects global optical cable demand to reach 851 million fiber kilometers by 2031, representing a 7.5% CAGR through 2031. STL's focus markets were described as having projected growth of 15.7% CAGR in 2030, while AI data centers are expected to account for one-third of total volume share by 2030 in markets outside China.
- Vertical Integration and Manufacturing FootprintSTL described itself as an end-to-end optical manufacturer spanning glass to gigabit, with about 9% global optical fiber cable market share outside China, more than 805 global patents filed and granted, and more than 10 advanced manufacturing facilities. Its facilities were described as having zero waste to landfill and zero liquid discharge.
- Capacity Expansion and R&D InvestmentAs part of Lakshya, STL plans to invest 2% of annual revenue in R&D for next-generation optical platforms, expand preform fiber and cable capacities by 50%, build a greenfield facility for pre-terminated solutions, and commit approximately INR 1,000 crore of annual CapEx through FY 2029.
- Neuralis Product ExpansionSTL strengthened its Neuralis portfolio with high-density pre-terminated fiber trunks, a plenum-rated portfolio for inside data hall connectivity, and pre-terminated trunk assemblies launched in September. The assemblies are factory-tested, plug-and-play products designed to support faster deployment and fewer on-site issues.
- Next-Generation Fiber TechnologiesSTL said its G.654.E fiber is fully commercialized and delivers 30% lower signal loss. Its hollow-core fiber cable offers 30%-47% lower latency and entered its first commercial pilot phase, while its multi-core fiber provides 4x-7x higher data capacity within the same footprint. Multi-core deployments are underway in India and the U.K.
- Innovation and Intellectual Property RecognitionSTL received recognition on IAM's Asia IP Elite 2026 List and filed 49 new patents during the quarter. The company said its portfolio now exceeds 805 patents covering glass chemistry, fiber geometry and connectivity design.
- Sustainability ProgressSTL's Chhatrapati Sambhaji Nagar plant transitioned to 100% green power, reducing the carbon footprint of its core optical fiber by over 80%. The company also cited commissioned green hydrogen and oxygen plants, ongoing zero-waste-to-landfill and zero-liquid-discharge standards, a net-zero-by-2030 commitment, a CDP A rating and more than 100 ESG awards.
- Improved Balance Sheet and Credit RatingsNet cash improved to INR 703 crore from INR 483 crore in the prior quarter, and management said STL remains net debt-free. Crisil upgraded the company's long-term rating to AA/Stable from AA-/Stable and reaffirmed its short-term rating at A1+; both Crisil and ICRA now rate STL at AA/Stable.
- Improving Raw Material Procurement and UtilizationManagement said procurement of key raw materials, including germanium and helium, has improved and that the company has diversified some sources. As a result, utilization was said to be improving quarter-on-quarter, while capacity projects are planned to come online over the next few quarters.
- More Predictable Revenue MixAs multi-year agreements with hyperscalers and telecom operators scale, more revenue is coming from scheduled backlog and spot business now represents a negligible share. Management said this is a deliberate part of Lakshya intended to support more predictable revenue, better capacity planning and more stable realization through the cycle.
- Long-Term Hyperscaler Investment VisibilityManagement said hyperscalers continue to make strong balance-sheet investments and that power contracts are being signed into 2031, 2032 and beyond. It described the larger hyperscalers' investment commitment to data center build-out as extending well beyond 2030.
IN:STLTECH Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 20, 2027 | 2027 (Q3) | ―- | -0.15 | ― | ― |
| Oct 23, 2026 | 2027 (Q2) | 4.707.30 | 0.1 | 7200.00% (+7.20) | |
| Jul 24, 2026 | 2027 (Q1) | ―4.00 | 0.2 | 1900.00% (+3.80) | |
| Apr 29, 2026 | 2026 (Q4) | ―0.95 | 0.1 | 850.00% (+0.85) | |
| Jan 23, 2026 | 2026 (Q3) | ―-0.15 | -0.37 | 59.57% (+0.22) | |
| Nov 06, 2025 | 2026 (Q2) | ―0.10 | -0.22 | 145.05% (+0.32) | |
| Jul 25, 2025 | 2026 (Q1) | ―0.20 | -0.74 | 126.99% (+0.94) | |
| May 16, 2025 | 2025 (Q4) | ―0.10 | -1.56 | 106.42% (+1.66) | |
| Jan 17, 2025 | 2025 (Q3) | ―-0.37 | -1.43 | 74.06% (+1.06) | |
| Oct 30, 2024 | 2025 (Q2) | ―-0.22 | 0.52 | -142.77% (-0.74) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
