Sterlite Tech. Q1 FY26 Results (NSE: STLTECH)
Signal: Margin expansion
The read
Inflection quarter: STL recorded its highest-ever revenue, EBITDA, and PAT, with EBITDA margin of 20.8% — highest in nearly 20 quarters — driven by AI data center orders and operating leverage; order book surged to ₹18,618 Cr, providing multi-year visibility.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,910 Cr | 87.4% | 32.5% |
| EBIT | ₹397 Cr | 183.6% | |
| Net profit | ₹197 Cr | 1870.0% | |
| EPS | ₹1.21 | 505.0% | |
| EBIT margin | 20.8% |
P&L walk
P&L walk driven by record revenue of ₹1,910 Cr (+87% YoY), EBITDA margin expanded 710bps to 20.8% due to improved product mix, higher Data Center business contribution, and operating leverage; PAT surged to ₹197 Cr (from ₹10 Cr YoY).
Key positives
- Record revenue of ₹1,910 Cr (+87% YoY); highest ever.
- EBITDA margin expanded to 20.8% (+710bps YoY); highest in ~20 quarters.
- PAT of ₹197 Cr vs ₹10 Cr YoY — massive turnaround.
- Order book at record ₹18,618 Cr; order intake of ₹13,100 Cr (1.7x Q4FY26).
- Secured $1.11 billion multi-year contract for AI data center optical connectivity.
- Became net debt-free after ₹1,500 Cr QIP; credit ratings upgraded by ICRA and CRISIL.
- Operating leverage evident: EBITDA grew 184% vs revenue 87% YoY; margin expanded 710bps.
Key concerns
- EPS growth (505% YoY) lagged PAT growth (1870%) due to equity dilution from QIP; impact on per-share metrics.
- Quarterly FY26 PAT was ₹10 Cr; high base effect may moderate growth going forward.
Research and educational content only. Not investment advice.