Sterlite Tech Q2 FY27: PAT ₹517 cr, revenue ₹2,529 cr

Record quarter as AI-led connectivity demand rises

Sterlite Technologies (STL), an optical fibre cable (OFC) and connectivity solutions provider, reported its strongest quarterly performance for Q2 FY27 (July to September). The company posted profit after tax (PAT) of ₹517 crore on revenue of ₹2,529 crore, calling it its highest-ever revenue. Revenue grew 145% year-on-year (YoY), supported by demand for what the company described as AI-ready digital infrastructure. STL said hyperscalers are building data centres that require denser fibre per rack compared with earlier architectures. The company also flagged a rising share of integrated optical connectivity solutions in its mix.

In its earnings statement, Managing Director Ankit Agarwal said, “Q2 FY27 is our best quarter yet, with the highest revenue and EBITDA in STL’s history. It reflects the strength of demand for AI-ready digital infrastructure.”

Q2 FY27 headline numbers: profit, revenue and EBITDA

STL reported a 12,817% to 12,825% YoY jump in net profit/PAT to ₹517 crore, compared with ₹4 crore in Q2 FY26. Revenue from operations rose to ₹2,529 crore from ₹1,034 crore in the year-ago quarter. EBITDA jumped to ₹846 crore from ₹141 crore in Q2 FY26, and the reported EBITDA margin improved to 33.5% from 13.6% a year earlier.

The company attributed the performance to stronger demand for optical connectivity products, improved margins, and a one-time tariff refund gain. STL also stated that both revenue and EBITDA were the highest in its history during the quarter.

Sequential trend: growth over Q1 FY27

On a quarter-on-quarter (QoQ) basis, PAT increased 162% from ₹197 crore in Q1 FY27. Revenue rose 32% sequentially from ₹1,910 crore in the June quarter. EBITDA more than doubled from ₹397 crore in Q1 FY27 to ₹846 crore in Q2 FY27.

These sequential gains were presented alongside comments about steady execution and strong order intake, supported by large multi-year agreements with hyperscalers and telecom operators.

Margin expansion and the one-time tariff refund gain

STL disclosed that Q2 FY27 EBITDA included a one-time net gain from a US tariff refund worth ₹161 crore. Excluding this one-time gain, operational EBITDA was ₹685 crore and the operational EBITDA margin was 27.1%. The company said the operational margin was still 624 basis points higher sequentially.

The reported margin metrics in the quarter therefore reflect both operating improvement and the tariff refund benefit. Investors tracking underlying performance may focus on the operational EBITDA and operational margin numbers provided by the company.

Demand drivers: hyperscalers, data centres, and product mix

STL linked the revenue jump to growing investment in artificial intelligence infrastructure and higher demand from hyperscale data centre operators and telecom companies. The company said that data centre architecture is changing, with higher fibre density requirements per rack.

A key operational metric highlighted by STL was the “optical connectivity attach rate,” which it said reached an all-time high of 24% during H1 FY27. STL said a growing share of its business is now coming from integrated optical connectivity solutions.

Order book hits record, with part scheduled for Q3

STL’s open order book reached a record ₹35,274 crore at the end of the quarter, compared with ₹7,687 crore at the end of FY26. The company also provided a schedule for execution: ₹3,021 crore is planned for Q3 FY27, while ₹32,253 crore is due for Q4 FY27 and beyond.

This level of backlog can improve revenue visibility, but it also raises execution expectations, especially when demand is tied to large data centre and telecom rollouts.

Balance sheet update: net debt-free and cash position

STL reported a net debt-free balance sheet for the quarter, supported by strong revenue growth and margin expansion. It also reported net cash of ₹703 crore. The company noted that this included around ₹396 crore of restricted cash related to a legal matter involving its US entity.

The disclosure is relevant for investors assessing headline cash balances versus freely available cash.

Key financial snapshot (as reported)

Half-year performance and what it signals

For H1 FY27, STL reported revenue from continuing operations of ₹4,439 crore, up from ₹2,054 crore in H1 FY26. H1 FY27 EBITDA expanded to ₹1,243 crore (28.0% margin) from ₹281 crore (13.7% margin) in H1 FY26. STL also reported H1 FY27 PAT of ₹714 crore versus ₹14 crore in H1 FY26.

These half-year numbers indicate that the Q2 jump was not a standalone spike in revenue, though a portion of quarterly profitability was supported by the one-time tariff refund gain.

Market impact and why the results matter

The quarter’s key market signal was the combination of record revenue, margin expansion, and a sharply higher order book, all tied by the company to hyperscaler-led demand. The attach rate of 24% in H1 FY27 suggests a shift toward integrated optical connectivity solutions, which typically carry different margin and execution characteristics compared with standalone cable supply.

Separately, STL’s regulatory filing said its board approved unaudited consolidated and standalone results for the quarter and half year ended September 30, 2026, along with a limited review by statutory auditors. The filing also included disclosures on utilisation of issue proceeds from a preferential issue of warrants, a qualified institutional placement, and non-convertible debentures, and statements under SEBI regulations.

Analyst context: forecast revisions cited in the report

The material also cited improved consensus expectations for FY27, with a revenue forecast rising to ₹9,070 crore from ₹8,070 crore and an EPS estimate rising to ₹20.42 per share from ₹16.50 per share. It also referenced first quarter FY27 results with EPS of ₹4.03, revenue of ₹1,920 crore, and net income of ₹197 crore.

Conclusion

STL’s Q2 FY27 results showed a sharp step-up in revenue to ₹2,529 crore and PAT to ₹517 crore, alongside EBITDA of ₹846 crore and a record order book of ₹35,274 crore. The company attributed momentum to AI-ready digital infrastructure demand, integrated connectivity mix gains, and multi-year agreements with hyperscalers and telecom operators. Investors will likely track the conversion of the Q3-scheduled ₹3,021 crore backlog and the larger ₹32,253 crore due in Q4 FY27 and beyond, along with the sustainability of margins excluding one-time items.