Sterlite Technologies – Q4 FY26 Results

key financial highlights

• Revenue from Operations:
  • Revenue (Q4 FY26): ₹1,441 Cr
    • QoQ Change: +14.6%
    • YoY Change: -29.8%
  • Previous Quarter (Q3 FY26): ₹1,257 Cr
  • Previous Year (Q4 FY25): ₹2,052 Cr
• Profit After Tax (PAT):
  • PAT (Q4 FY26): ₹59 Cr
    • QoQ Change: Turnaround
    • YoY Change: Strong Improvement
  • Previous Quarter (Q3 FY26): -₹17 Cr (Loss)
  • Previous Year (Q4 FY25): ₹5 Cr
• QoQ Performance
  • Revenue Trend: Strong Recovery
  • Profit Trend: Turnaround

Margin Analysis

Key Drivers:

• EBITDA Margin improved significantly QoQ
• Cost pressures remain in:
  • Raw materials
  • Employee expenses
  • Other operational costs

Key Signal: Operating leverage kicking in, but margins still below historical peak

Segment performance

Segment Revenue (Q4 FY26)

• Optical Networking: ₹1,378 Cr
• Digital & Technology Solutions: ₹69 Cr

Segment EBITDA

• Optical Networking: ₹202 Cr (Primary driver)
• Digital Segment: Near breakeven

Segment insight

Summary:

• Optical business contributes ~95% of revenue → core growth engine
• Digital segment still small and under-scaled
• Business heavily dependent on telecom infra cycle

Earning quality check

Drivers:

• Profit improvement driven by:
  • Core operations (EBITDA expansion)
  • Some support from exceptional items (₹31 Cr)

Interpretation:

• Earnings quality moderate, not fully clean due to exceptional support

balance sheet Analysis

• Total Assets: ₹6,346 Cr
• Total Liabilities: ₹4,078 Cr
• Equity: ₹2,268 Cr

Insight:

• Debt increased:
  • Borrowings rising (₹1,155 Cr vs ₹837 Cr YoY)
• Working capital pressure visible:
  • Trade receivables increased
  • Inventories elevated

Cash flow analysis

Operating Cash Flow:

• FY26: ₹520 Cr
• FY25: ₹348 Cr

Key Observations:

• Positive operating cash flow improvement
• However:
  • Working capital absorbed cash (~₹53 Cr impact)
  • Receivables and inventory still high

key risks

• High dependence on telecom capex cycle
• Rising debt levels
• Working capital intensity
• Margin volatility due to raw material costs

management strategy signals

Focus Area:

• Optical fiber and network expansion
• Global telecom infrastructure demand
• Scaling digital solutions business

Financial Metrics

Quarterly Performance Context