Sterlite Technologies Q2 Results: Profit surges 12,817% YoY to Rs 517 crore, revenue jumps 145%

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Revenue from operations surged 145% YoY to a record Rs 2,529 crore from Rs 1,034 crore, while EBITDA jumped sixfold to Rs 846 crore from Rs 141 crore in the corresponding quarter last year.

On a sequential basis, net profit rose 162% from Rs 197 crore in the June quarter, while revenue increased 32% from Rs 1,910 crore. EBITDA more than doubled from Rs 397 crore in the preceding quarter.

The company said both revenue and EBITDA were the highest in its history, supported by growing investments in artificial intelligence infrastructure and rising demand from hyperscale data centre operators and telecom companies.

STL's open order book reached a record Rs 35,274 crore at the end of September, providing revenue visibility for the coming years. The company also reported a net debt-free balance sheet during the quarter.

AI demand drives record orders

Sterlite Technologies said demand for AI-ready digital infrastructure has accelerated as hyperscalers expand data centre capacity, requiring significantly higher fibre density than conventional cloud infrastructure. The company secured several large, multi-year supply agreements with global hyperscalers and telecom operators during the first half of FY27.

Among the major orders was a $1.2 billion, or Rs 11,500 crore, long-term agreement with a hyperscaler to supply optical connectivity products between calendar years 2026 and 2030.

STL also received a $1.11 billion, or Rs 10,500 crore, product award letter from another hyperscaler for supplies between FY27 and FY29.

Other contracts included a $288 million, or Rs 2,700 crore, deal for high-density optical fibre cables between 2027 and 2029, and a $210 million, or Rs 2,000 crore, agreement with a leading telecom infrastructure company for the same period.

The company also signed a multi-year optical cable supply agreement worth Rs 960 crore with a major Indian telecom operator.

The rising contribution of integrated connectivity solutions has supported its performance, with the optical connectivity attach rate reaching a record 24% during the first half of FY27.

"Q2 FY27 is our best quarter yet, with the highest revenue and EBITDA in STL's history. It reflects the strength of demand for AI-ready digital infrastructure," said Ankit Agarwal, MD of Sterlite Technologies.

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"The large multi-year agreements we secured this quarter, along with an open order book of Rs 35,274 crore, give us strong visibility as hyperscalers and telecom operators scale their digital infrastructure and networks," he added.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.