STLTECHNSEQ4FY26May 05, 2026

Sterlite Technologies Limited

6,991words

69turns

12analyst exchanges

2executives

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Management on call

Ankit Agarwal

MANAGING DIRECTOR – STERLITE TECHNOLOGIES LIMITED

Ajay Jhanjhari

CHIEF FINANCIAL OFFICER – STERLITE TECHNOLOGIES LIMITED

Key numbers — 40 extracted

rs,

ials. STL is a global leader in digital connectivity infrastructure, serving telcos, data centers, citizen networks and large enterprises. Our portfolio spans fiber to fiber optic cables, specialty

cables and connectivity products. We are India's No. 1 end-to-end optical manufacturer with over 8% global optical fiber cable market outside of China.And with more than 30-plus years of leadership

151 million

ilwind for the optical infrastructure. FTTx is accelerating globally with deployments rising from 151 million fiber kilometers in 2025, going up to 170 million fiber kilometers by 2030. Just in the U.S. al

170 million

elerating globally with deployments rising from 151 million fiber kilometers in 2025, going up to 170 million fiber kilometers by 2030. Just in the U.S. alone, over 100 million homes will be served by fiber

100 million

ometers in 2025, going up to 170 million fiber kilometers by 2030. Just in the U.S. alone, over 100 million homes will be served by fiber 2030, supported by large government projects like BEAD and BharatNe

40%

n India. Data centers are simply the fastest-growing driver for fiber demand. CRU projects that 40% of global growth in optical cable demand from data centers in 2026 alone, driven by hyperscale ex

60 gigawatt

ansion and AI workloads. North America installed DC capacity is expected to more than double from 60 gigawatts in 2025 to almost 115 gigawatts by 2030. Hyperscalers DC capex is expected to increase to a whop

115 gigawatt

America installed DC capacity is expected to more than double from 60 gigawatts in 2025 to almost 115 gigawatts by 2030. Hyperscalers DC capex is expected to increase to a whopping $762 billion. 5G is scali

762 billion

025 to almost 115 gigawatts by 2030. Hyperscalers DC capex is expected to increase to a whopping $762 billion. 5G is scaling rapidly with 6.4 billion subscriptions expected to grow by 2030 and carrying 80%

6.4 billion

erscalers DC capex is expected to increase to a whopping $762 billion. 5G is scaling rapidly with 6.4 billion subscriptions expected to grow by 2030 and carrying 80% of all mobile traffic. This requires mass

80%

ion. 5G is scaling rapidly with 6.4 billion subscriptions expected to grow by 2030 and carrying 80% of all mobile traffic. This requires massive fiber backhaul, fronthaul and network densification

70%

ating once-in-a-generation opportunity for optical connectivity. As per sources by 2030, nearly 70% of data center demand will be AI-led, driving a sharp increase in capex and infrastructure intens

Guidance — 20 items

Ankit Agarwal

opening

“As we look forward to FY27, our priorities are defined.”

Ankit Agarwal

opening

“At the same time, we aim to scale the contribution from our enterprise and data center segments, underpinned by continued technology leadership and a relentless focus on cost optimization.”

Ankit Agarwal

opening

“alone, over 100 million homes will be served by fiber 2030, supported by large government projects like BEAD and BharatNet in India.”

Ankit Agarwal

opening

“As per sources by 2030, nearly 70% of data center demand will be AI-led, driving a sharp increase in capex and infrastructure intensity.”

Ankit Agarwal

opening

“Every dollar of data center capex has a direct multiplier of fiber intensity across DCI, metro and long-haul networks with optical cable demand projected to grow at 11% CAGR through 2030.”

Ankit Agarwal

opening

“CRU expects it to deliver the strongest regional CAGR of 15% all the way to 2030.”

Ankit Agarwal

opening

“In FY26, order inflows more than doubled to INR 7,687 crores, up 109% year-on-year as compared to INR 3,672 crores in FY25.”

Ankit Agarwal

opening

“As for current data, the Hollow Core Fiber is expected to reduce the latency between 35% to 40% in the network, which will be a huge breakthrough.”

Ankit Agarwal

opening

“On market position and attach rate trends, our global ex-China OFC market share remained stable at around 8% in FY26, demonstrating resilient execution in a challenging environment marked by U.S.”

Ankit Agarwal

opening

“In optical connectivity, attach rates moderated to 15% from FY26 from 22% in FY25.”

Risks & concerns — 9 flagged

On segment side, Telecom and Citizen Networks remains the core contributors, while enterprise and data centers moderated to 19% in FY26, primarily due to decline in our copper business because of higher LME prices.

— Ajay Jhanjhari

This balanced regional footprint reduces concentration risk and positions us well to capture growth across key global markets.

— Ajay Jhanjhari

And that is something that continues to be a challenge, but we do expect it to improve quarter-on-quarter.

— Ankit Agarwal

So given that this quarter has seen impact of the U.S.

— Akshat Mehta

tariffs coming down, how should we look at margins going forward when the full impact of the U.S.

— Akshat Mehta

So broadly, there will be an improvement in the overall margin profile, but that won't be similar to what we are reflecting here, like it will have some impact of the cost increase as well.

— Ajay Jhanjhari

So I am trying to understand whether is there any active pipeline or RFQ we have, even these data center hyperscaler customers, they are willing to fund and they are willing to risk sharing agreements?

— Balasubramanian

So based on our past learnings across cycles, like how are we looking to reduce or rationalize that risk of cyclicality?

— Sunny Gosar

While we see that the near-term demand remains robust, but assuming that there is some slowdown or some cyclicality in the demand, how are we looking to kind of reduce that risk per se?

— Sunny Gosar

Q&A — 12 exchanges

I would not comment on specific utilization, but broadly, it's improved slightly. As I said, we have called it out. We continue to have constraints with some of our raw materials. And we do expect those constraints to reduce quarter-on- quarter as I have been stating. So it is more of the same. Aniruddha Pandhare: Okay. And I mean, an extension of that question probably since you mentioned raw materials. Any update on the germanium or helium? We had seen significant, I believe, cost inflation there as well?

Ankit Agarwal

So the costs continue to be quite high or very high. But as I said, more importantly for us is getting the availability itself. And that is something that continues to be a challenge, but we do expect it to improve quarter-on-quarter. Aniruddha Pandhare: So how, I mean, is there a number sort of how far ahead do we have the sort of the stocks, maybe is it two quarters, three quarters, four quarters? Yes. I mean we, as I said, we have some amount of volume for the rest of the year. It's about optimizing and getting more so that we can further utilize our factories. So there is some good amount

I just wanted to understand on the recent QIP approval. Is this purely enabling resolution to maintain capital raising flexibility or is there any funding requirement already identified? And also on the context on the recent capital infusion from the parent level, how should we think about the incremental capital needs for Sterlite Tech?

Ajay Jhanjhari

So I will answer in two parts. The first one on the fundraising. So this has always been an enabling resolution which we take year-on-year basis. So this year also, this needs to be considered as an enabling. Right now, there are certain capex plans which we are having. We do expect that in near-term we will focus on our technology leadership and upgrading our asset base to support high-value data center portfolio offerings, which can have an approximate investment of INR 500 crores. And sir, my second question would be the kind of tailwind we have been hearing on the data center. How should w

Ankit, I have one question for you and one for Ajay. So Ankit, basically, I need some color if you can provide the strong order book this quarter, was it volume driven purely or you have seen improvement in realization? As well as if you can quantify contribution from data center within this, if possible?

Ankit Agarwal

Nikhil, I cannot give you color. I will have to be black and white. But in seriousness, the data center contribution. So we do not break that out. I think we have called out broadly the data center and enterprise. As you can see the absolute number is growing and we did have slightly lower copper sales. So overall, it is in the right direction. And I think as we have discussed and we have shared on these calls, we continue to work on securing long-term contracts and relationships, both with telecom operators as well as data centers. So that is moving in the right direction. Second for Ajay. Aj

A few basic questions to begin with. What is our IBR capacity as of date? And what are our plans to increase it, if any?

Ankit Agarwal

Sorry, Rahil, we do not disclose capacity. Got it. Okay. Would you be able to share how much of our total preform requirement do we buy from outside as of date? And how much will this increase to as and when we start utilizing optimum capacity of 80%, 85%? Sorry, Rahil, we do not disclose any of these things. Got it. Okay. So maybe what we can try is on the hyperscaler side, why is the hyperscaler and DC sales volumes not picking up as much for us, while our global as well as local peers are scaling up very well and shifting majority capacities to reach demand? Are we seeing any product qualit

My first question is leading Q4, OFC prices have witnessed a very sharp increase, particularly from late December or early January, so how has been the trend in the realizations off-late across standard OFC and high frequency data centers cables? How is the difference in sizes and what's the delta in margins playing out likely? And how are we going to evolve the mix in our favour?

Ankit Agarwal

Thank you. I was kind of reiterate what we have been saying through previous calls. We do not play in the spot market and we do not sell in the spot market. We are very, very focused on long-term contracts with our select customers globally, particularly in Europe and U.S. and in India. So that is how we look at it. Of course, at any point, if, for example, raw materials or freight or anything is going up and down or tariff, then those are conversations we have with our customers, and we look to see how we can adjust those things. I am aware that the fiber optic prices have increased particula

My first question is on the margin, sir. So given that this quarter has seen impact of the U.S. tariffs coming down, how should we look at margins going forward when the full impact of the U.S. tariff coming from 50% to 15% will come? Should it be similar or should be probably higher?

Ajay Jhanjhari

So the last quarter, at least in Q4, there was a slight impact only because of the reduction in tariffs because we need to sell goods in advance to our subsidiaries and all. Going forward, in Q1, there will be a positive impact on account of tariffs, while our revenue is expected to increase further from U.S. operations. But there is one more counterpart to it, which is the cost, which is increasing significantly due to this war issue. So broadly, there will be an improvement in the overall margin profile, but that won't be similar to what we are reflecting here, like it will have some impact

Sir, we were actually looking at the PPT of OmniCure so they had some exclusive tie-up with for germanium. So is that, is their entire capacity enough for us or we need more? And is the supply started for the same?

Ankit Agarwal

Sorry, I think for confidential reasons, we cannot share where we stand on this or our suppliers. It is an important raw material like helium and some others, and we continue to take strategic actions. Okay. And post this capex, can you at least tell what will be our capacity for OFC? Sorry, we are not going to be disclosing capacities going forward.

Congratulations for a good set of numbers. Sir, my first question on the data center side, I think we are launching advanced products like Neuralis, hollow core fiber, G654, I think many products are under pipeline. But if you look at on the international market, big players are taking billion orders, especially for data center and generative AI and enterprise side. So I am trying to understand whether is there any active pipeline or RFQ we have, even these data center hyperscaler customers, they are willing to fund and they are willing to risk sharing agreements? They are more aggressive on b

Ankit Agarwal

Thank you. I think broadly, I would say that we have done some good work. I am very proud of our team in terms of the product portfolio we have created. Neuralis is truly cutting edge what we have launched, and it is truly a great solution that we believe will serve the data center world. I think we are well placed, I think, in terms of our portfolio, in terms of the work that we have done. And we do have some good customers. We are working well with them in terms of looking at their long-term requirements. And as we continue to make progress and as we continue to grow with them, we will conti

Congratulations on a good set of numbers. My question is on the optical interconnect segment. So we have seen some, in my understanding, some stagnation in the revenue in FY26. But if we have to say, look at the next two to three years, how should we look at this segment in terms of the growth trajectory? And earlier, we used to look at 50% attach rates. So how are we thinking about that now going forward?

Ankit Agarwal

Yes. Thank you, Sunny. And look, I think structurally, yes, the attach rate percentage-wise has come down. But I think it is largely a timing and mix- related factors. There is no change in structural demand. I think we have been working hard on this for a few years now building our product portfolio. We have also been working closely with customers to co-develop it for them. So I do see this that at least on an absolute basis, the revenue should continue to increase over time. There are also certain connectivity products that are required for the data center segment, which we are evaluating a

Sir, firstly, pertaining to this Prysmian cables litigation, what is the last we have heard on the same? And any date that we have for the litigation or at what stage are we? And sir, secondly, in continuation to the tariff part, we have also seen that the U.S. government has been asked to reverse the amount which they have collected as tariff. And I think so we have paid tariff on the sales that we have done to the U.S., the geography of U.S. So where are we in terms of these two aspects?

Ankit Agarwal

Yes. Thank you. So I think on the legal matter, we had filed our appeal in September 2025. So that's where it is, that's progressing. As I said, we continue to believe we have a very strong case. And we do hope for a favorable outcome in that matter. And I think in terms of the tariff rebate, you are right, there is a process that's got kickstarted in the U.S. for repayment of tariff to the importer on record. And to that extent, we will follow that process, but we cannot give a clear timeline right now of when and how much of those refunds will come. We can probably update you in the next ear

Congrats on a good set of numbers. Bringing back to the earlier participant's question, I know we have been in discussion with the hyperscalers since along and you are making good progress, right? But given our capabilities, and I am just trying to understand there should be some progress made, right? And I just wanted to understand what could be the timelines where we can look to close this let's say, orders or deals or any LOIs with the hyperscalers because almost like three to four months, we are into discussion and then we have, I mean, let's say, domestic peers, global players getting tho

Ankit Agarwal

No, as I said, at least I do not think we are facing any orders. We are continuing to expand our product portfolio that can serve this market. And we have got good feedback from our customers. We continue to get orders from them. And we are, as I said, we are making good progress with the hyperscalers in terms of what could a longer-term partnership be. So that is the conversation that is going on. Okay. And sir, are we at least in the testing mode of our products with the hyperscalers? So I think we already shared last quarter, we are actively now supplying into this market. Got it. And sir,

Thank you, everyone, for taking your time to hear us out. We remain excited and motivated to drive this business forward and to unlock its full potential. Through our efforts, we see a tremendous opportunity to connect the unconnected across the world and especially here in India. We truly believe STL is well positioned to play a pivotal role in building the digital infrastructure of the future and of our country. We are happy to take any questions of yours. For any queries or qualifications, you can reach out to our Investor Relations team, Ajay and I will both be available. Once again, thank

Management

Speaking time

Ankit Agarwal

Moderator

Ajay Jhanjhari

Rahil Dasani

Akshat Mehta

Sunny Gosar

Saket Kapoor

Tej Patel

Aman Saifee

Nikhil

Opening remarks

Ankit Agarwal

Yes. Good day, everyone, and thank you for joining STL's Q4 and FY26 earnings call. I'll begin by highlighting the key takeaways from our Investor Presentation, and then Ajay will walk you through the financials. STL is a global leader in digital connectivity infrastructure, serving telcos, data centers, citizen networks and large enterprises. Our portfolio spans fiber to fiber optic cables, specialty cables and connectivity products. We are India's No. 1 end-to-end optical manufacturer with over 8% global optical fiber cable market outside of China.And with more than 30-plus years of leadership, close to almost 800 patents and 10+ zero waste manufacturing facilities worldwide. STL is truly leading the next wave of global digital infrastructure. At STL, we are amongst very few companies in the world that have mastered the journey from Glass to Gigabit. It starts with the purest grade of silicon, which we transform through advanced processes like silicon tetrachloride formation, chemica

Ajay Jhanjhari

Thank you, Ankit, and thanks, everyone, for joining us today. I'll take you through the key financial highlights for Q4 and FY26. STL delivered a strong Q4 finish and solid full year performance. Q4 FY26 revenue stood at INR 1,441 crores, reflecting strong 37% year-on-year growth momentum. EBITDA margins expanded to 15.1%, supported by scale benefits and better product mix. For the full year, revenue increased to INR 4,745 crores, with EBITDA rising to INR 628 crores, a 39% year-on-year growth with margin improving to 13.2%. PAT also turned positive in Q4 and for the full year, reflecting improved profitability and execution. Overall, the performance reflects our focus on disciplined growth, margin expansion and stronger bottom line outcomes. As you can see in Slide 25, despite a challenging external environment, we have delivered consistent operational margin expansion over the last six quarters. Operational EBITDA improved to 15.1% in Q4 FY26, driven by higher utilization, a stronger

Ankit Agarwal

Thank you, Ajay. STL CSR initiatives continue to create a strong measure impact across health care and education. This is all aligned with our philosophy that we must give back to society in which we operate. Our flagship health care program, Swashthya Suraksha won the Best Rural Healthcare Initiative for the year 2025 at the Indian Social Impact Awards recognizing its sustained contribution to rural and tribal health care. And the education, the RoboEdge program received the Best Education Support Initiative of the year 2025 at the Indian CSR Awards for advancing STEM learning and innovation. RoboEdge students also excelled globally at the International Robotex Championship 2025, winning multiple podium positions. Nine students representing India showcasing talent teamwork and innovation, reflecting India's commitment, STL's commitment to build a stronger future-ready society. At STL, sustainability is simply central to our purpose. We are proud to hold ‘Synesgy A rating’ and are comm

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