Sterlite Technologies Ltd reported Q2 FY27 numbers. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 23, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 2,529.00 Cr (+144.60% YoY) |
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| PAT (Q2) | Rs. 517.00 Cr |
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| EBITDA margin | 33.50% (+1990 bps YoY) |
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| EPS (Q2) | Rs. 10.32 |
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| Market cap | Rs. 42,494.56 Cr |
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| CMP | Rs. 826.65 |
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Quarter Snapshot
STL delivered a record quarter with revenue up 144.6% YoY to Rs.2,529 Cr and EBITDA up 500% YoY, with operational margin of 27.1% already ahead of the 20% Q4 FY27 target two quarters early. The balance sheet is transformed to net cash via a Rs.1,477 Cr QIP and Rs.1,024 Cr of debt repayment, while the order book doubled to Rs.35,274 Cr on AI data-center demand and hyperscaler LTSAs. Key watch items are the Rs.161 Cr one-time tariff refund embedded in PAT, a Rs.540 Cr receivables build, and the unresolved $101.25 Mn Prysmian verdict.
Key Investment Insights
Key Positives
- Revenue grew 144.6% YoY to Rs.2,529 Cr (+32.4% QoQ), a record quarter
- EBITDA grew 500% YoY to Rs.846 Cr; reported margin 33.5%, operational margin 27.1% (+630 bps QoQ)
- PAT rose to Rs.517 Cr from Rs.4 Cr year-ago; normalized PAT Rs.410.4 Cr (+108.3% QoQ)
- Open order book at record Rs.35,274 Cr with Rs.3,021 Cr scheduled for Q3FY27; H1 order intake Rs.32,026 Cr vs Rs.7,687 Cr in FY26
- Attach rate reached all-time high of 24% (vs 20% in H1FY26); global OFC share ex-China rose from 7% to 9%
- Net debt-free balance sheet achieved: D/E nil, net cash Rs.308 Cr (Rs.703 Cr including restricted cash)
- H1 CFO Rs.692 Cr, FCF Rs.435 Cr, CFO/PAT 0.97x
- Inventory build reversed with Rs.47 Cr drawdown vs Rs.158 Cr build in Q1FY27
Risk Factors
- Rs.161 Cr of Q2 PAT came from a one-time US tariff refund; normalized PAT is Rs.410.4 Cr vs reported Rs.517 Cr
- Trade receivables rose Rs.540 Cr since March to Rs.1,606 Cr, the main working-capital drag
- Rs.39 Cr net impairment losses on financial/contract assets (vs nil in Q1 and year-ago) plus Rs.22 Cr PP&E impairment
- Prysmian litigation: $101.25 Mn verdict against subsidiary STI unresolved; ~Rs.396 Cr restricted cash earmarked; auditor emphasis-of-matter
- Consolidated finance costs of Rs.63 Cr exceeded the prior Rs.47-52 Cr quarterly band
- STL Digital remains near breakeven at Rs.2 Cr EBITDA on Rs.86 Cr revenue