Sterlite Tech Q1 Results: Profit skyrockets 870% YoY to Rs 197 crore as AI data centre orders lift earnings

Sterlite Technologies reported its strongest quarterly performance in Q1FY27, helped by higher demand for optical connectivity products, growth in its data centre business and a record order book linked to AI-ready digital infrastructure.

The company reported revenue of Rs 1,910 crore for the quarter ended June 30, up 87% from Rs 1,019 crore in the same quarter last year. Sequentially, revenue rose 33% from Rs 1,441 crore in Q4FY26. Profit after tax rose 870% to Rs 197 crore from Rs 10 crore a year earlier. In the March quarter, the company had reported PAT of Rs 59 crore.

EBITDA rose to Rs 397 crore, compared with Rs 140 crore in Q1 and Rs 218 crore in the previous quarter. EBITDA margin stood at 20.8%, the highest in nearly 20 quarters, helped by a better product mix, operating leverage and higher contribution from the data centre business.


The company said its open order book stood at a record Rs 18,618 crore at the end of the quarter.

Sterlite Tech said the performance reflected strong demand from hyperscalers and telecom operators as companies invest in high-speed connectivity for AI data centres and next-generation digital infrastructure.

"Q1 FY27 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.

He said the rapid scale-up in the data centre business showed the company’s alignment with the AI infrastructure buildout.

Order book hits record high

Sterlite Tech secured a multi-year contract worth $1.11 billion, or more than Rs 10,000 crore, to supply optical connectivity products for next-generation AI data centres. The company also received multiple hyperscaler orders worth more than $100 million for Neuralis, its integrated data centre solutions portfolio. It also won a strategic order to supply long-haul, dark-fibre high-density micro-cables to a major connectivity infrastructure provider.

The order wins come as data centres require higher fibre density, faster data transmission and more efficient connectivity systems to handle AI workloads. STL has been positioning itself as a supplier of optical fibre, cables and integrated connectivity products for this buildout.

Balance sheet turns net debt-free

Sterlite Tech said it achieved a net debt-free balance sheet during the quarter after raising Rs 1,500 crore through a qualified institutional placement.

The company said the fundraise has strengthened its balance sheet and will help support the next phase of growth. Following the improvement in its financial position, CRISIL revised its rating outlook to “Stable”, while ICRA upgraded the company’s credit rating to “AA (Stable)”.

The balance-sheet improvement is important for STL as it enters a larger order execution cycle. A stronger capital base gives the company more room to scale production, invest in products and manage working capital as orders rise.

AI portfolio gets sharper

The company continued to invest in optical fibre and data centre connectivity products during the quarter.

It introduced CONCAT, a pre-connectorized plug-and-play solution aimed at reducing onsite labour and installation costs. STL also developed US Conec-certified MMC pre-terminated solutions, which it said can deliver a three-times increase in cabling density to support 800G and higher-speed AI data centre networks.

The company said these products are part of its broader AI-ready digital infrastructure portfolio, built for data centres that need higher bandwidth, lower latency and denser fibre networks.

Sterlite Tech also said it secured a decisive win in a patent dispute in Europe. The company said the development reinforces the strength of its intellectual property portfolio, which now includes more than 785 patents, and strengthens its position in optical connectivity markets across the UK and Europe.