Sterlite Technologies Limited (STLTECH) AI Stock Analysis

• Market Cap: ₹80.59B
• Dividend Yield: N/A
• Average Volume (3M): 109.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: -14.27%
• EPS Growth: 78.52%
• Country: IN
• Employees: 1,296
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.15
• Shares Outstanding: 488,104,100
• 10 Day Avg. Volume: 116,158
• 30 Day Avg. Volume: 109,979
• PEG Ratio: -0.34
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 19.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹166.00 ▲(62.67% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is held back primarily by weakening financial performance (declining revenue, losses, margin compression, and uneven cash generation). Strong technical momentum provides support, but overbought indicators increase near-term risk. Valuation is unfavorable due to negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Diversified revenue streams

STL's mix of optical hardware, network build services, software platforms, and turnkey solutions reduces reliance on a single product or customer. Diversification supports resilience across telecom capex cycles, enables cross-selling, and smooths revenue volatility over the medium term.

Exposure to structural telecom tailwinds

The company addresses secular demand drivers—5G deployments, national fiberization and growing data-center interconnect—which expand its addressable market. Structural capex programs create multi-quarter contract pipelines and durable demand for fiber, cables and integration services.

Moderate leverage and equity base

A moderate debt profile and a reasonable equity ratio provide financial flexibility to execute project-backed contracts and fund capex without excessive solvency risk. This balance supports operational continuity while management works to restore profitability.

Negative Factors

Declining revenue and profit deterioration

A sustained drop in revenue and the shift from profit to loss materially reduce internal funding capacity and weaken competitive positioning in bid-driven markets. Restoring top-line growth is critical to rebuild margins and fund strategic investments over the medium term.

Volatile and negative free cash flow

Irregular operating cash flow and episodes of negative free cash flow limit the firm's ability to finance working capital and capex internally. This increases reliance on external financing, heightens refinancing risk, and constrains ability to scale project delivery sustainably.

Margin compression and operational pressure

Eroding gross and operating margins point to pricing pressure, cost inflation, or execution inefficiencies. Persistent margin compression reduces funds for R&D and service quality investments, making long-term competitiveness dependent on operational improvements and cost control.

Sterlite Technologies Limited Business Overview & Revenue Model

Company Description

Sterlite Technologies Limited manufactures and sells connectivity and network solutions in India and internationally. It offers optical fiber cables, specialty cables, glass preforms, and optical interconnect kits; virtualized access solutions; and network software products. The company also provides system integration services, such as network design, fiber rollout, network O&M, and data center network services; and private enterprise network services. Sterlite Technologies Limited was founded in 1988 and is based in Pune, India. Sterlite Technologies Limited is a subsidiary of Twin Star Overseas Limited.

How the Company Makes Money

STLTECH generates revenue primarily through the sale of telecommunications infrastructure products, including optical fibers, cables, and associated hardware. The company has a diverse revenue model that includes direct sales to telecommunications operators, enterprises, and government agencies. Key revenue streams include the provision of advanced network services and solutions, particularly in the deployment of 5G technology and broadband infrastructure. Additionally, STLTECH collaborates with various strategic partners and telecom operators, which helps to enhance its market reach and secure long-term contracts. The company's involvement in digital transformation projects further contributes to its earnings, as demand for robust connectivity solutions continues to grow.

Sterlite Technologies Limited Financial Statement Overview

Summary

Fundamentals are pressured: revenue has declined, profitability deteriorated from profit to loss by 2025, and margins (gross/EBIT/EBITDA) have compressed. Balance sheet leverage is moderate but equity has declined and liabilities increased, while cash flow is volatile with periods of negative free cash flow, raising liquidity and turnaround execution risk.

Income Statement

Sterlite Technologies Limited has experienced a decline in revenue over the past few years, with a significant drop in net income from a profit in 2021 to a loss in 2025. Gross profit margin has decreased alongside EBIT and EBITDA margins, indicating pressure on profitability. The company needs to address declining sales and improve operational efficiency to restore financial stability.

Balance Sheet

The balance sheet shows a relatively stable equity position, with a debt-to-equity ratio that suggests moderate leverage. The company maintains a reasonable equity ratio, but the decline in stockholders' equity over time and increased liabilities highlight a need to manage debt levels carefully to prevent financial strain.

Cash Flow

Operating cash flow has fluctuated, and free cash flow has turned negative at times, indicating potential liquidity challenges. The free cash flow to net income ratio is concerning due to recent net losses. Improving cash generation and managing capital expenditures are crucial for strengthening financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.97B	39.96B	40.83B	68.46B	53.94B	48.01B
Gross Profit	21.66B	19.95B	23.98B	15.83B	11.14B	10.41B
EBITDA	5.53B	4.52B	5.72B	9.31B	7.40B	8.37B
Net Income	-680.00M	-1.23B	-510.00M	1.41B	600.00M	2.75B
Balance Sheet
Total Assets	0.00	55.27B	83.31B	88.65B	87.45B	80.73B
Cash, Cash Equivalents and Short-Term Investments	4.68B	4.51B	4.65B	6.65B	5.28B	4.24B
Total Debt	0.00	19.26B	33.76B	38.34B	34.76B	29.44B
Total Liabilities	-19.90B	35.37B	63.08B	67.70B	67.03B	59.87B
Stockholders Equity	19.90B	19.90B	20.23B	20.91B	19.57B	19.87B
Cash Flow
Free Cash Flow	0.00	2.15B	5.11B	-1.49B	-1.03B	1.83B
Operating Cash Flow	0.00	3.48B	7.91B	2.27B	5.74B	6.38B
Investing Cash Flow	0.00	-890.00M	-2.09B	-580.00M	-4.71B	-6.19B
Financing Cash Flow	0.00	40.00M	-6.91B	-1.32B	1.15B	232.00M

Sterlite Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 102.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STLTECH, the sentiment is Positive. The current price of 102.05 is below the 20-day moving average (MA) of 140.98, below the 50-day MA of 114.69, and below the 200-day MA of 109.89, indicating a bullish trend. The MACD of 15.89 indicates Negative momentum. The RSI at 70.93 is Negative, neither overbought nor oversold. The STOCH value of 82.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:STLTECH.

Sterlite Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPHASIS	73 Outperform	₹424.14B	24.41	―	1.94%	8.73%	11.33%
KPITTECH	66 Neutral	₹208.61B	30.74	―	0.69%	13.34%	5.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVALON	60 Neutral	₹65.25B	67.67	―	―	46.80%	201.41%
STLTECH	58 Neutral	₹80.59B	-187.36	―	―	-14.27%	78.52%
TEJASNET	57 Neutral	₹56.39B	-7.35	―	0.55%	-17.23%	-185.73%
HFCL	56 Neutral	₹106.41B	197.70	―	0.15%	-19.16%	-92.64%

Sterlite Technologies Limited Corporate Events

Sterlite Technologies Sets March 4 Virtual EGM With E-Voting for Shareholders

Sterlite Technologies Limited has announced that it will hold an Extraordinary General Meeting on March 4, 2026, via video conferencing and other audio-visual means, with no physical venue for shareholders. The company has published newspaper advertisements in English and Marathi detailing the virtual meeting arrangements and e-voting process, underscoring its compliance with SEBI listing norms and continued use of remote participation mechanisms for shareholder governance.

The notice signals STL’s ongoing shift toward digital-first corporate governance, which may enhance accessibility for a geographically dispersed shareholder base while maintaining regulatory transparency. By formalizing online voting and virtual attendance, the company reinforces its alignment with evolving market practices in India’s listed corporate sector and provides stakeholders with clarity on how to exercise their rights in upcoming corporate decisions.

Sterlite Technologies Calls March 2026 EGM to Amend Articles for Flexible Securities Issuance

Sterlite Technologies Limited has convened an Extraordinary General Meeting for March 4, 2026, to be held via video conferencing and other audio-visual means, enabling shareholders to participate and vote electronically. The company has arranged remote e-voting and e-voting during the meeting, with the electronic voting window running from February 27 to March 3, 2026.

The key agenda for the EGM is a special resolution to amend the Articles of Association, allowing greater flexibility in issuing and allotting securities, including for non-cash consideration such as assets, goods, machinery, or services. These changes aim to broaden the types of securities the company can issue under applicable laws, potentially giving Sterlite Technologies more strategic options for financing, partnerships, and compensation structures.

Sterlite Technologies Posts Q3 FY26 Earnings Call Recording Online

Sterlite Technologies Limited has announced that it has completed its earnings call discussing the financial results for the third quarter of FY26, which was held on January 23, 2026. The company has made the audio recording of this earnings call available to investors and stakeholders on its website under the financial results section, enhancing transparency and access to its quarterly performance discussions for market participants.

Sterlite Technologies Posts Double-Digit Q3 Growth, Deepens Push Into AI-Ready Digital Infrastructure

Sterlite Technologies reported strong financial performance for the quarter ended 31 December 2025, with revenue of INR 1,257 crore and EBITDA of INR 129 crore, reflecting year-on-year growth of about 26% and 16%, respectively, and marking a fifth consecutive quarter of sequential improvement in operational EBITDA margins driven by a higher-margin product mix and rising contributions from the US. The Optical Networking Business delivered INR 1,174 crore in revenue and INR 131 crore in EBITDA, supported by capacity expansions, data-centre-centric product innovation and global operations positioned closer to customers, while STL Digital expanded to 34 global clients and secured a multimillion-dollar SAP S/4HANA deal; alongside order wins of over INR 500 crore for data centre solutions, new product launches and advanced fibre technology collaborations, these developments reinforce STL’s technology leadership and strategic positioning to capitalise on growing demand for AI-ready digital infrastructure worldwide.

Sterlite Technologies Posts Double-Digit Growth, Deepens Push Into AI-Ready Digital Infrastructure

Sterlite Technologies reported strong financial performance for the quarter ended 31 December 2025, with revenue of INR 1,257 crore and EBITDA of INR 129 crore, reflecting year-on-year growth of about 26% and 16%, respectively, and a fifth consecutive quarter of improvement in operational EBITDA margins. The Optical Networking Business contributed the bulk of results with INR 1,174 crore in revenue and INR 131 crore in EBITDA, supported by higher-margin product mix, growing US business, data-centre focused innovation, and capacity expansion, while STL Digital added new global clients and secured a multimillion-dollar SAP S/4 HANA deal from a US pharma major. Operationally, STL highlighted strong order momentum across the US, UK, Europe and Asia, including data centre interconnect orders exceeding INR 500 crore, expansion of its fibre and microcable product portfolio, and ongoing development of advanced fibre technologies such as Multi-Core, Hollow-Core and G.654.E, reinforcing its technology leadership and positioning to benefit from rising demand for AI-ready digital infrastructure and potential opportunities from a US–India trade agreement.

STL and Colt validate multi-core fibre in London trial for next-gen optical networks

Sterlite Technologies Ltd (STL) has completed successful field trials of its Multiverse Multi-Core 4-core Fibre with Colt Technology Services on Colt’s London metro optical network, validating the technology as a sustainable, high-capacity and cost-efficient backbone for next-generation networks. The trial, run over 9 km and 63 km links between Colt points of presence in London, achieved an 800 Gbps line rate and validated 100GE and 400GE services, with comprehensive performance and reliability tests delivering satisfactory results; the four-core fibre matches the cladding diameter of standard single-mode fibre, enabling ultra-high transmission capacity without increasing cable size and underscoring STL’s position as one of the first companies globally to move multi-core fibre from lab to real-world deployments, supporting the growing demands of AI, cloud and digital services.

Sterlite Technologies to Appeal INR 36.83 Crore Tax Demand Order

Sterlite Technologies Limited has disclosed that it received a demand order of INR 36.83 crore from the Assessment Unit of the Income Tax Department for the financial year 2025-26, issued under various provisions of the Income-tax Act, 1961. The adjustments relate mainly to intra-group services received from overseas related parties, interest on loans and advances, corporate guarantees and recovery of SBLC fees, and interest on outstanding receivables, which the company characterizes as arising from differing interpretations of tax law rather than any violation. STL plans to challenge the demand by filing an appeal before the Income Tax Appellate Tribunal within the prescribed 60-day period and has stated that there is no immediate financial impact on its operations, signaling to investors and other stakeholders that it expects a reasonable chance of a favorable outcome given precedents in similar cases.

Sterlite Technologies Flags Tax Demand Order, Attributes Liability to Demerged STL Networks

Sterlite Technologies Limited has disclosed that it received a demand order from the Office of the Deputy Commissioner of State Tax in Madhya Pradesh, triggering a regulatory filing under SEBI’s Listing Obligations and Disclosure Requirements. The company clarified that, following a tribunal-approved demerger of its Global Services Business into STL Networks Limited effective March 31, 2025, any contingent liabilities related to this matter are attributable to STL Networks Limited, which has separately made the requisite stock exchange disclosures, thereby ring-fencing Sterlite Technologies from direct financial exposure on this specific tax demand.

Sterlite Technologies Denies Any Undisclosed Information Behind Surge in Trading Volumes

Sterlite Technologies Limited has responded to a query from the National Stock Exchange of India regarding a significant increase in trading volumes of its shares across exchanges. The company stated that it has been complying with regulatory requirements by disclosing all events and information that could affect its operations or performance in a timely manner, and confirmed that it is not aware of any unpublished price-sensitive information that could explain the recent surge in trading activity.

Sterlite Technologies Draws Exchange Query After Surge in Trading Volumes

Trading in shares of Sterlite Technologies Limited has seen a significant spike in volume, prompting the stock exchange to seek clarification from the company to ensure investors have the most up-to-date and relevant information. The exchange has initiated this inquiry as a market-safeguard measure, and investors are now awaiting the company’s response, which may shed light on the reasons behind the unusual activity and its implications for market participants.

Sterlite Technologies Faces Legal Challenge Over Patent Infringement

Sterlite Technologies Limited is currently involved in a legal dispute with Fujikura Ltd and Fujikura Europe over alleged patent infringement concerning STL’s ribbed cables in the UK. The High Court of Justice issued a split judgment, finding STL’s low-fiber-count cables infringing while ruling that their ultra-high-fiber-count cables do not infringe. STL plans to appeal the decision, and the financial impact remains uncertain until the matter is fully resolved.