STLTECH
Micro CapSterlite Technologies Limited
Media
Sterlite Technologies Limited (STL) is a global digital connectivity infrastructure player, #1 end-to-end optical manufacturer in India. It offers optical fiber, cables, and connectivity solutions to Telcos, Data Centers, Cloud, Citizen Networks, and Large Enterprises. STL holds 8% global market share in OFC (ex-China) with 780+ global patents.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 55/100Rev +37% YoY · margin expansion · +15% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,441 Cr | +37.0% | +14.6% |
| EBITDA | ₹195 Cr | +56.0% | +62.5% |
| Operating margin | 14.0% | +200 bps | +400 bps |
| PAT | ₹59 Cr | NDF | NDF |
| PAT margin | 4.1% | +789 bps | +544 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 revenue grew 37% YoY to INR 1,441 Cr, with EBITDA margin expanding to 15.1% from 13.9% YoY. FY26 revenue increased 19% YoY to INR 4,745 Cr, and EBITDA margin improved to 13.2% from 11.3% YoY. Net Profit for Q4 FY26 was INR 59 Cr vs INR 5 Cr YoY.
STL demonstrated strong Q4 FY26 performance with significant revenue growth and margin expansion, driven by increased order intake and operational efficiencies. The company is well-positioned to capitalize on multi-year industry tailwinds in 5G, FTTH, and AI-driven data centers. However, geopolitical cost inflation and the need to scale optical connectivity attach rates and enterprise segment contribution require close monitoring.
5G & FTTH Deployments
Multi-year network build cycles for 5G and FTTH, with >100 Mn US homes awaiting FTTH and 6.4 Bn global 5G subscriptions by 2030.
AI Revolution & Data Centre Expansion
Global data center market projected at ~US$250+ bn by 2030, with AI workloads driving higher fiber density per rack and increased DCI demand.
North American Market Growth
North America is expected to lead demand growth, with CRU projecting a 15% CAGR through 2030 for OFC demand.
Enterprise & Data Centre Segment
Strategic priority to scale 'Enterprise & DC' segment's revenue contribution, supported by large-scale data-centre project wins.
Local Capacities
Completed capacity expansions, positioned closer to focused markets and well placed to win in the market, seeing good traction in North American market.
Government Broadband Funding
U.S. Government's ~US$97B broadband funding (incl. US$42.5B BEAD) remains intact; BharatNet Phase III targets fibre to 1.5 crore rural homes.
Global Fibre Demand Upcycle
CRU projects global optical cable demand growth to accelerate to ~6.8% y/y in 2026, driven by improved project visibility and accelerating AI-led deployments.
US-China Tariff Dynamics
US-China tariff dynamics are opening new opportunities for India-sourced manufacturing, positioning STL to capture incremental demand.
India Data Centre Expansion
India's data centre expansion is creating a multi-year fibre demand tailwind, with optical cable demand projected to grow at ~11% CAGR from 2025-2030.
Geopolitical Cost Inflation
War-led geopolitical tensions in West Asia have emerged as a new headwind, driving cost inflation in helium and polymer-based jacketing compounds.
Changes in Government Policies/Regulations
Changes in government policies or regulations of India and, in particular, changes relating to the administration of the Company’s industry.
General Economic Conditions
Changes in general economic, business and credit conditions in India and global markets could impact performance.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall growth and annual performance, especially in a business with project cycles. QoQ comparison is important for tracking sequential momentum in order intake, margin improvements, and the impact of operational efficiencies and external factors.
Order Intake
Order intake for FY26 was INR 7,687 Cr, a 109% increase from FY25's INR 3,672 Cr.
Open Order Book
The open order book stood at INR 7,309 Cr in FY26, up 67% from FY25's INR 4,378 Cr.
Global OFC Market Share (ex-China)
Global OFC market share (ex-China) remained stable at 8% in FY26, same as FY25.
Optical Connectivity Attach Rate
Optical connectivity attach rate was 22% in FY26, up from 15% in FY25.
Grow OFC Market Share & Optical Connectivity Attach Rate
Strategic priority for FY27 is to grow OFC market share and optical connectivity attach rate.
Scale Enterprise & DC Segment
Strategic priority for FY27 is to scale 'Enterprise & DC' segment's revenue contribution.
Technology Leadership
Strategic priority for FY27 is technology leadership in next-gen optical platforms, including AI-DC portfolio and Multi-Core Fibre.
Cost Focus & Debt Reduction
Relentless focus on cost and a target to reduce Net Debt-to-EBITDA to <1.2x for FY27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Debt-to-EBITDA | 1.3x (Q4 FY26) | Achievement of FY27 target of <1.2x. |
| OFC Market Share (ex-China) | 8% (FY26) | Evidence of growth in market share as per strategic priority. |
| Optical Connectivity Attach Rate | 22% (FY26) | Continued increase in attach rate, indicating success in scaling this business. |
| Enterprise & Data Centre Revenue Contribution | 19% of total revenue (FY26) | Growth in revenue contribution from this segment as per strategic priority. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
54NeutralSMA20 +249.6% / mo · near 52W high
Technical chart
STLTECHweekly · 1Y+635.6%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 79. Wait for confirmation.
- SMA20 rising (~71.4% over last month) — short-term momentum positive.
- RSI(14) at 79 — overbought zone; risk of mean reversion.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 10% off 52W high · 650% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Cash flow contributes 4/10 to the score.
- Balance sheet contributes 4/15 to the score.
- Growth contributes 3/25 to the score.
Main drags
- Fair-value margin of safety is negative at -32349.4%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Telecom valuation: EV/EBITDA against ARPU, debt, and capex
Telecom needs enterprise-value and cash-flow framing because leverage is structurally important.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 38th percentile of the scored universe and 46th percentile within Media. Main check: results consistency is weak at 41/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 recent quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Media: 46th pctile, median 64 · Micro: 21st pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.1%.
- ▸10 years of positive FCF.
Trust risks
- ▸2 recent quarters had PAT decline worse than 25% YoY.
- ▸Debt/equity is 1.49.
- ▸ROCE is low at 7.8%.
- ▸ROE is low at 2.2%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 603.00
- P/B
- 12.65
- EV/EBITDA
- 36.38
- Market Cap
- 28714.00Cr
Profitability
- ROE
- 2.24%
- ROCE
- 7.75%
- ROA
- 0.88%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 3.95%
- EPS 5Y
- -30.00%
- Revenue 3Y
- -12.00%
- EPS 3Y
- -31.00%
Balance Sheet
- Debt/Equity
- 1.49
- Interest Coverage
- 2.54×
- Altman Z
- 5.88
- Book Value
- 46.50
Cash Flow
- FCF Yield
- 0.05%
- FCF Positive Y
- 10/5
- OCF
- 522.00 Cr
- EPS TTM
- 1.15
Shareholding
- Promoter Hold
- 44.44%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 84%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Media — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.