Sterlite Technologies reports a significant jump in quarterly revenue, a record order book and a strategic shift towards higher-value data centre and AI-focused solutions, boosting its growth outlook and margin targets for FY27.
Sterlite Technologies has drawn fresh attention after a sharp improvement in quarterly performance, a record order book and a stronger mix of higher-value work bolstered confidence in its growth outlook. According to the company’s latest results, revenue in the June quarter rose to ₹1,910 crore, up 87% from a year earlier, while EBITDA more than doubled to ₹397 crore. The EBITDA margin climbed to 20.8%, its best level in nearly 20 quarters, as richer product mix and operating leverage supported earnings.
The most striking change has come from data centres and enterprise customers. Sterlite said its open order book reached ₹18,618 crore, lifted by a $1.11 billion multi-year contract to supply optical connectivity products for AI data centres. The company also reported that the optical connectivity attach rate rose to 16% from 15% in FY26, signalling a larger share of value-added solutions in the business. A report from ICICI Direct said this shift is helping improve visibility on margins and revenues.
That momentum has pushed management to lift its ambitions for the year. Trade Brains reported that the company now expects enterprise and data centre work to contribute 50% of FY27 revenue, up from a previous goal of more than 30%, after those lines accounted for 39% in the first quarter. The brokerage also noted that Sterlite has raised its FY27 EBITDA margin target to 23% from 20% after reaching the earlier goal ahead of schedule.
Nuvama has kept a Buy rating on the stock and increased its target price to ₹770, implying about 22% upside from the level cited in Trade Brains’ report. The bullish view rests on rising demand tied to AI infrastructure, a record backlog and a healthier balance sheet. Sterlite said it ended the quarter with net cash of ₹483 crore after a qualified institutional placement that was largely used to reduce debt, giving it more room to fund expansion and technology upgrades.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
