STL Q4 FY26 profit jumps; order book Rs 7,309cr

Key takeaways from STL’s Q4 print

Sterlite Technologies Ltd (STL) reported a sharp improvement in profitability in Q4 FY26, supported by higher revenue, stronger operating performance, and a one-off gain. Net profit for the March quarter rose to INR 59 crore from INR 5 crore a year earlier. The company also reported that it had posted a loss of INR 17 crore in the preceding December quarter. Revenue and EBITDA both improved year-on-year, with management citing better capacity utilisation and an improved product mix. Alongside the earnings print, STL highlighted stronger revenue visibility due to a large rise in order intake during FY26. The open order book stood at INR 7,309 crore at the end of FY26.

What changed in Q4 FY26

The sharp rise in Q4 profitability was partly aided by a one-off gain of INR 31 crore, according to the company’s disclosure. Even without that, operating metrics improved in the quarter as revenue growth translated into higher EBITDA. Consolidated revenue grew 37% year-on-year to INR 1,441 crore compared with INR 1,052 crore in Q4 FY25. EBITDA rose to INR 218 crore from INR 146 crore over the same period. The company attributed the operating improvement to higher capacity utilisation and a better product mix. STL also noted that it has now recorded a sixth consecutive quarter of sequential improvement in EBITDA margins, signalling continued operational recovery.

FY26 financial performance and margin trend

For FY26, STL reported revenue of INR 4,745 crore, representing 18.8% year-on-year growth. It also reported FY26 EBITDA of INR 628 crore, with an EBITDA margin of 13.2%. For Q4 FY26, EBITDA margin was reported at 15.1%, compared with 13.9% in Q4 FY25. The company’s narrative focused on improving profitability and margin expansion through the year. The margin improvement was described as sequential for six consecutive quarters. STL also reported that Q4 FY26 revenue showed 14.7% quarter-on-quarter growth.

Order intake jumps; revenue visibility improves

Beyond quarterly earnings, STL placed emphasis on order momentum in FY26. The company said FY26 marked a transformative phase, with order intake surging about 110% compared to FY25. This, it said, strengthens revenue visibility for coming quarters. The open order book stood at INR 7,309 crore at the end of FY26. STL linked this order book to large-scale data centre and telecom projects across key markets, including North America, Europe and India. The commentary positions the order pipeline as a key factor behind improving utilisation and product mix.

Board approvals, audit opinion, and capital actions

STL said its Board of Directors approved the audited financial results for FY26 at a meeting held on April 29, 2026. The meeting commenced at 9:30 AM and concluded in the afternoon. The Board approved audited standalone and consolidated financial results for Q4 and FY26. Statutory auditors Price Waterhouse Chartered Accountants LLP issued an unmodified audit opinion on the financial results. The Board did not recommend any dividend for FY26. It also approved raising funds through various instruments, as per the filing.

Debt targets the company outlined

Alongside operational updates, STL disclosed a debt reduction target framework. It reported net debt-to-EBITDA at 1.30x in Q4 FY26. The company’s stated target is to bring this ratio below 1.20x by FY27. The stated strategic focus is debt optimisation to improve financial flexibility. These disclosures provide a measurable monitorable for investors tracking the balance sheet.

Market context: stock correction and investor focus

A separate market update dated April 6, 2026 noted that STL’s share price had fallen from its 52-week high of INR 205.73 to trade near INR 176 to INR 195, an 11% to 15% correction from recent highs. The same update also referenced that the stock had previously fallen to a 52-week low of INR 41.36 in April 2025 and then recovered substantially. It described the current move as consolidation after a sharp recovery rally. The market commentary also flagged longer-running concerns such as debt levels and profitability volatility, while pointing to potential demand drivers such as data centre fibre needs and telecom rollouts. These are not company guidance, but they reflect the issues and themes investors have been tracking around STL.

Snapshot of reported numbers

Order book and leverage monitorables

Why this quarter matters

The Q4 FY26 result combines a sharp swing in net profit with clear operating improvement, as reflected in revenue growth and higher EBITDA. The one-off gain explains part of the profit jump, but STL also reported stronger utilisation and product mix as underlying drivers. The sixth consecutive quarter of sequential margin improvement is notable because it extends the recovery trend beyond a single quarter. Separately, the scale of order intake growth and the INR 7,309 crore order book provide context for near-term revenue visibility. Investors will likely track how quickly this order book converts into billed revenue and whether margin gains hold as execution ramps. The leverage target provides an additional reference point for monitoring balance sheet progress.

Conclusion

STL’s Q4 FY26 results showed a return to profitability, higher revenue, and improved EBITDA margins, supported by a one-off gain and operational recovery. The company ended FY26 with a larger order book and disclosed a leverage reduction target for FY27. Next checkpoints for investors include subsequent quarterly conversion of the order book into revenue, continued margin progression, and progress toward the net debt-to-EBITDA target.