Sterlite Technologies Ltd
NSE: STLTECHCompany page on Cofacto
Open the Sterlite Technologies Ltd page

Sterlite Technologies Limited (STLTECH) Q2 Results FY27 Preview: Date, Time, Expectations & Key Things To Watch

Cofacto Research Published October 18, 2026 5 min read

Sterlite Technologies (STL) makes optical fiber, cables and connectivity solutions for telecom and data center networks, and enters this quarter on the back of its highest-ever quarterly revenue and EBITDA in Q1 FY27. The print will speak to whether the 20.8% EBITDA margin holds above the company's 20% reported-level guidance amid helium, germanium and polymer cost pressures, and how quickly the ₹18,618 Cr open order book — including ~USD 1.70 Bn of new hyperscaler LTSAs — converts into revenue.

Quick Details
Results dateOctober 23, 2026
QuarterQ2 FY 2026-2027
Previous quarter revenueRs. 1,910 Cr
Previous quarter PATRs. 197 Cr
Previous quarter EBITDA margin20.8%
Market capRs. 44,512 Cr
CMPRs. 865.9

Sterlite Technologies Limited Q2 Results Date and Time

The Board of Directors will meet on Friday, October 23, 2026, to approve the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, under Regulations 29 & 33 of SEBI Listing Regulations. The trading window remained closed from October 1 to October 25, 2026.

What to expect from Sterlite Technologies Limited's Q2 FY27 results

The quarter is a test of whether Q1 FY27's 20.8% EBITDA margin — the highest in nearly 20 quarters — can hold above management's guided 20% reported level by Q4 FY27, a guidance that assumes tariff at the current rate. Execution enters against a Rs. 2,228 Cr executable order book for Q2 FY27, after Q1's Rs. 1,910 Cr revenue ran well ahead of the ~Rs. 1,500 Cr of order book indicated, and the in-window wins — the Oct 1 hyperscaler LTSA of ~USD 1.2 Bn, the Aug 29 ~USD 288 Mn and Aug 5 ~USD 210 Mn LTSAs, and the Aug 1 ~Rs. 960 Cr domestic operator agreement — mostly carry out-quarter execution. Cost pressures are the live margin question: helium prices were still climbing as of early October after the Qatar LNG disruption, germanium remains structurally supply-constrained with China's licensing regime intact through at least November 2026, and Indian polymer prices were higher YoY, while the company's supplier-diversification and helium-recycling mitigants were described as work-in-progress over the next few quarters. The tariff drag that cut reported EBITDA by ~760 bps in Q3 FY26 and ~600 bps in Q4 FY26 stemmed from the 50% regime dismantled in February 2026, so the applicable rate this quarter and the >Rs. 100 Cr importer-rebate process are open items. The net debt-free claim — achieved post the Rs. 1,500 Cr QIP at Rs. 583.01/share in July 2026 — should be verifiable in the balance sheet for the first time, with finance costs to confirm against the Rs. 47–52 Cr per quarter reference. The call is also likely to cover the mix shift toward the guided 30% Enterprise & Data Centre revenue share in FY27 (from 19% in FY26) and the 25% connectivity attach rate by Q4 FY27 (from 15% in FY26).

Key Things To Watch

Performance vs guidance tracking: Where the company stands against its stated targets heading into Q2 FY27:

  • Reported EBITDA margin 20% by end of current fiscal (Q4 FY27) — latest tracked actual 20.8% in Q1 FY27
  • Connectivity attach rate 25% by Q4 FY27 — latest tracked actual 15% in FY26, 17% YTD FY26
  • Enterprise & DC revenue share 30% by FY27 — latest tracked actual 19% in FY26
  • Net debt-free during FY27 — achieved post-QIP (July 2026); ND/EBITDA below 1.2x open-ended vs 1.3x at Q4 FY26
  • Capex ~Rs. 1,000 Cr annually over next 3 FYs; ~Rs. 3,000 Cr total by end-FY29 — board approval Sep 3, 2026

Execution against the order book

  • Q2 execution to be checked against the Rs. 2,228 Cr executable order book, after Q1 FY27 execution exceeded the ~Rs. 1,500 Cr indicated
  • Initial revenue recognition from the four new LTSAs worth ~USD 1.70 Bn plus ~Rs. 960 Cr — most carry FY28–29 execution

Margin quality and input costs

  • Whether Q1 FY27's 20.8% holds above the 20% reported-level guidance despite helium, polymer and germanium cost pressures
  • Progress on germanium-consumption reduction technologies and helium recycling, described as work-in-progress over the next few quarters
  • Whether the 'towards 23%' margin reference gains a timeline

Balance sheet and litigation follow-ups

  • Confirmation of net debt-free status post the Rs. 1,500 Cr QIP and the finance-cost run-rate against the Rs. 47–52 Cr/qtr reference
  • Prysmian Fourth Circuit appeal updates on the $101.25 million verdict, with a $41.53 million bond deposited and ~Rs. 372 Cr restricted cash allocated
  • US tariff refund quantum and timeline — north of Rs. 100 Cr paid cumulatively, with a rebate process started but no timeline given

Lakshya roadmap assumptions

  • Any refinement of the 'key risk and assumptions' slide added with the Lakshya disclosure of Rs. 20,000 Cr revenue and 27%+ EBITDA margin by FY29
  • Capital-allocation detail on the ~Rs. 3,000 Cr capex program approved Sep 3, 2026

Frequently Asked Questions

How did US tariffs affect Sterlite Technologies' margins?

Management confirmed the ~300 bps US margin reduction in Q2 FY26 was primarily borne by STL, given 6-month lead times and fixed-price contracts, quantified as a 3% EBITDA impact. The reported-vs-operational wedge widened to almost 760 bps in Q3 FY26 and ~600 bps in Q4 FY26.

What is the status of the Prysmian litigation against STL's US subsidiary?

Sterlite Technologies Inc. faces a confirmed verdict of $101.25 million (including $4.75 million fees/costs), with an appeal filed at the Fourth Circuit in September 2025 and a $41.53 million bond deposited. Two further appeal stages remain, and management has said it continues to believe it has a very strong case.

Will STL recover the US tariffs it has paid?

The company has paid north of Rs. 100 crores in tariffs cumulatively, and a US rebate process for importers of record has started. Management has not given a timeline on refunds, with an update promised for a subsequent earnings call.

Is STL on track with its 20% EBITDA margin guidance?

Management targets a 20% reported EBITDA margin by the end of the current fiscal (Q4 FY27), and Q1 FY27 delivered 20.8% — the highest in nearly 20 quarters. The guidance assumes tariff at the current rate.

Powered by Cofacto — AI research platform for Indian stocks, every claim cited from primary filings

Login Now