STL Delivers Record Financial Performance in Q1 FY27: Net Profit Surges to ₹197 Crore as Order Book Reaches ₹18,618 Crore

Leading AI-ready digital infrastructure connectivity solutions provider STL (Sterlite Technologies Limited) [NSE: STLTECH] announced its financial results for the first quarter ended June 30, 2026 (Q1 FY27). Driven by rapid expansion in its Data Center business and strong operational leverage, the company posted the strongest quarterly financial performance in its history.

STL reported its highest-ever quarterly revenue, EBITDA, and order book, while successfully transforming its balance sheet to a net debt-free status during the quarter.

Record Q1 FY27 Financial Highlights

Revenue from Operations: Consolidated revenue for Q1 FY27 reached a record ₹1,910 crore, representing an 87.44% YoY increase compared to ₹1,019 crore in Q1 FY26. Sequentially, revenue expanded 32.55% over ₹1,441 crore in Q4 FY26.

EBITDA: Surged 183.57% YoY to ₹397 crore, compared to ₹140 crore in Q1 FY26 and ₹218 crore in Q4 FY26.

EBITDA Margin: Reached 20.8%, reflecting a strong 710 bps YoY expansion from 13.7% in Q1 FY26. This represents the company's highest margin level in nearly 20 quarters, supported by an improved product mix and a higher contribution from its Data Center segment.

Profit Before Tax (PBT): Climbed to ₹257 crore, compared to ₹13 crore in Q1 FY26 and ₹109 crore in Q4 FY26.

Profit After Tax (PAT): Net profit jumped nearly 20-fold YoY to ₹197 crore, compared to ₹10 crore in Q1 FY26. On a sequential basis, net profit expanded 233.90% over ₹59 crore in Q4 FY26.

Earnings Per Share (EPS): Basic EPS for the quarter rose to ₹4.03 per share (diluted EPS of ₹3.71), up from ₹0.20 in Q1 FY26 and ₹1.21 in Q4 FY26.

Total Comprehensive Income: Stood at ₹250 crore after accounting for ₹53 crore in Other Comprehensive Income (OCI).

Balance Sheet Transformation & Credit Upgrades

During the quarter, STL successfully completed a Qualified Institutions Placement (QIP) of ₹1,500 crore. The capital raise enabled the company to eliminate its net debt, achieving a net debt-free balance sheet while securing funding to accelerate its next growth phase.

Following the deleveraging and improved financial risk profile:

CRISIL revised its rating outlook on STL to 'Stable'.

ICRA upgraded the company's credit rating to 'AA (Stable)'.

Record Order Book & Key Commercial Wins

STL ended Q1 FY27 with an open order book standing at a record ₹18,618 crore, underpinned by major global contract wins in the AI and hyperscaler data center spaces:

US$ 1.11 Billion Multi-Year Contract: Secured a massive contract worth over ₹10,000 crore to supply optical connectivity products designed for next-generation AI data centers.

Hyperscaler Orders: Awarded multiple hyperscaler contracts totaling over $100 million for Neuralis, STL's integrated suite of data center solutions.

Dark-Fibre Infrastructure Deal: Won a strategic order to supply long-haul, high-density micro-cables to a major connectivity infrastructure provider.

Product Innovation & Patent Victory

STL continued to advance its Research & Development efforts tailored for GPU-intensive and AI-driven workloads:

Neuralis Suite: Expanded its purpose-built connectivity solutions for AI data centers, enabling ultra-high-density cabling.

CONCAT: Introduced a pre-connectorized, plug-and-play solution designed to reduce onsite labor and installation expenses.

MMC Pre-Terminated Solutions: Developed US Conec-certified solutions delivering a 3X increase in cabling density to support 800G+ architectures.

IP Rights Victory: Won a decisive patent dispute in Europe, reinforcing its global intellectual property portfolio which now encompasses over 785 filed and granted patents, strengthening its optical connectivity footprint across the UK and European markets.

Executive Commentary

"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," said Ankit Agarwal, Managing Director, STL. "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."

Breakdown of Total Income & Costs

Total Income: Stood at ₹1,922 crore (comprising ₹1,910 crore operational revenue and ₹12 crore other income).

Cost of Raw Materials & Components: ₹805 crore (versus ₹554 crore in Q1 FY26).

Inventories Adjustment: Absorption stood at ₹158 crore.

Employee Benefits Expense: ₹195 crore (versus ₹156 crore in Q1 FY26).

Other Expenses: Totaled ₹367 crore (versus ₹218 crore in Q1 FY26).

Finance Costs: Reduced to ₹55 crore (down from ₹63 crore in Q4 FY26 and ₹50 crore in Q1 FY26).

Depreciation & Amortisation: Stood at ₹85 crore.

Tax Provision: Total tax expense was ₹60 crore (comprising ₹34 crore current tax and ₹26 crore deferred tax).

Shares of Sterlite Technologies Limited was last trading in BSE at Rs. 546.75 as compared to the previous close of Rs. 552.95. The total number of shares traded during the day was 86033 in over 1892 trades.

The stock hit an intraday high of Rs. 564.00 and intraday low of 532.00. The net turnover during the day was Rs. 46722293.00.

Source : Equity Bulls

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SterliteTechnologies INE089C01029 STLTECH Q1FY27 Q1FY2027 ResultUpdate