In , Sterlite Technologies Ltd (Cables - Telecom) is outperforming Nifty 500 with +185.0% relative strength. Fundamentals: Average. On a 12-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Capacity Utilization: Targeting 70%+
Impact: 20% EBITDA margin
“Directionally, this is a business where if we operate with the right utilizations of 70% plus, we are confident that ultimately, this is a business that should be 20% EBITDA margins.”
What: Order Book: ₹5,325 Cr
“Our open order book stood at INR5,325 crores, up from INR5,188 crores in Q2 FY '26, reflecting healthy order inflows.”
What: Enterprise/DC Revenue Share: 20% YTD
Impact: Targeting 30% share
“And as the demand continues, as our portfolio continues to improve, both on cable and connectivity, we do expect this ratio that we spoke about 20% to move towards 30% in probably next 12 to 18 months.”
What: North America Revenue Share: 36%
“North America share increased from 25% in FY '25 to 36% in the current financial year.”
What: New Product Pipeline: G.654.E and Hollow-Core
“Looking ahead to STL's next-generation fiber portfolio, we have 2 exciting launches coming up, G.654.E and Hollow-Core fiber.”
What: Revenue growth of 12% YoY
“Our revenue for Q3 stood at INR1,257 crores, reflecting strong growth momentum with YTD FY '26 revenue up 12% YoY at INR3,311 crores.”
Earnings deceleration risks from management commentary
Trigger: U.S. trade policy changes impacting Indian-made optical fiber cables.
Impact: PAT impact: 760 bps on EBITDA margin
Management view: Ramping up U.S. local production and negotiating price pass-throughs.
Monitor: regulatory
Trigger: Legal dispute in the U.S. district court.
Management view: Filed appeal and posted bond; no immediate financial payout obligation.
Monitor: litigation
Trigger: Tightly controlled supply from China.
Management view: Evaluating global sources outside China and utilizing local Chinese facility.
Monitor: commodity
Trigger: Regulatory compliance with new labor laws.
Impact: PAT impact: ₹15 Cr
Management view: Treated as an exceptional item.
Monitor: labor
Key quotes from recent conference calls
“Net debt stands at Rs. 1,313 crores with debt to equity ratio of 0.64 and net debt to EBITDA at 2.33x. We are focused on bringing this below 2x going forward. [Previous Net Debt to EBITDA guidance]”
“What we can tell you is that, yes, as you rightly mentioned, we have been continuously increasing our U.S. production, which can mitigate these tariff impacts partly. [Initiative: U.S. Local Production Ramp-up]”
“However, the U.S. tariff reset effective mid Q2 of FY '26 created a temporary headwind, reducing reported EBITDA by almost 760 bps in Q3. [Risk (regulatory): HIGH]”
“And now the case has moved to the U.S. Court of Appeals. And whatever was required in terms of posting the bond, that has been done successfully, and there is no financial payout obligations at this stage. [Risk (litigation): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹1,257 Cr
Why: Growth was broad-based across business segments with strong volume recovery in the Optical Networking business.
Revenue showed a sharp recovery from Q2 levels of ₹1,034 Cr.
EBITDA
₹129 Cr
Why: Margins moderated in the near term due to the full-quarter impact of U.S. tariff headwinds.
Reported EBITDA was impacted by a 760 bps headwind from U.S. tariffs.
PAT
₹9 Cr
Why: The company achieved a turnaround from a loss of ₹78 Cr last year to a profit before exceptional items.
Profitability is stabilizing despite an exceptional ₹15 Cr charge for the new labor code.
Other Highlights
• Open order book reached ₹5,325 Cr
• Net debt stands at ₹1,331 Cr
• Exceptional item of ₹15 Cr for labor code
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Open Order Book
₹5,325 Cr
Why: Healthy order inflows and strong market confidence.
North America Revenue Share
36%
Why: Strategic priority of deepening presence in the U.S. market.
Connectivity Attach Rate
17%
Why: Primarily driven by product mix and project timing alongside sharp acceleration in OFC revenues.
Global OFC Market Share (Ex-China)
8%
Why: Disciplined execution in a competitive market.
Enterprise & Data Center Revenue Share
20%
Why: Gaining traction with a goal to scale to 30%.
Total Patents
780
Why: Continued focus on next-generation optical innovation.
Net Debt / EBITDA
2.58x
Why: Impacted by lower trailing EBITDA due to tariff headwinds.
STL Digital Revenue
₹86 Cr
Why: Steady progress in scaling the digital business despite a tough environment.
Forward-looking targets from management for Long-term
OPM Guidance
20%
Capex Plan
₹115 Cr
Targeting 20% EBITDA margins at 70%+ utilization
₹115 Cr
R&D and maintenance
Guidance Changes
EBITDA Margin: 14.1% (H1 FY26) → 10.3% (Q3 FY26)
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +37% | -12% | Stable |
| PAT (Net Profit) | +248% | -24% | Stable |
| OPM | 14.0% | +200 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Sterlite Technologies Ltd's latest quarterly results (Mar 2026) show
Sterlite Technologies Ltd's profit is growing with an stable trend.
Sterlite Technologies Ltd's revenue growth trend is stable.
Sterlite Technologies Ltd's operating margin is stable.
Sterlite Technologies Ltd's long-term compounding rates
Sterlite Technologies Ltd's earnings growth is stable with mixed signals on a sequential basis.
Sterlite Technologies Ltd's trailing twelve month (TTM) performance
Sterlite Technologies Ltd appears significantly overvalued based on our fair value analysis.
Sterlite Technologies Ltd's current PE ratio is 385.0x.
Sterlite Technologies Ltd's current PE is 385.0x.
Sterlite Technologies Ltd's price-to-book ratio is 8.1x.
Sterlite Technologies Ltd is rated Average with a fundamental score of 54.95/100. This score is calculated from objective financial metrics
Sterlite Technologies Ltd has a debt-to-equity ratio of N/A.
Sterlite Technologies Ltd's return ratios over recent years
Sterlite Technologies Ltd's operating cash flow is positive (FY2026).
Sterlite Technologies Ltd currently does not pay a significant dividend (yield 0.00%).
Sterlite Technologies Ltd's shareholding pattern (Mar 2026)
Sterlite Technologies Ltd's promoter holding has decreased recently.
Sterlite Technologies Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Sterlite Technologies Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
Sterlite Technologies Ltd has 6 key growth catalysts identified from recent earnings analysis
Sterlite Technologies Ltd has 4 key risks worth monitoring
In Q3 FY26, Sterlite Technologies Ltd's management highlighted
Sterlite Technologies Ltd's management has provided the following forward guidance for Long-term
Sterlite Technologies Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Sterlite Technologies Ltd may be worth studying
Sterlite Technologies Ltd investment thesis summary:
Sterlite Technologies Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
