Sterlite Technologies Limited (STLTECH) AI Stock Analysis

• Market Cap: ₹51.89B
• Dividend Yield: N/A
• Average Volume (3M): 109.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• 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: 53 Neutral
• Price Target: ₹105.00 ▲(2.89% Upside)

The score is held back primarily by deteriorating financial performance (profitability decline, losses, and uneven cash generation). Technicals are moderately supportive in the short term but not strong enough to offset fundamentals, and valuation is penalized due to losses reflected in the negative P/E.

Positive Factors

Diversified Revenue Streams

STL's mix of optical products, network deployment services and software-led platforms provides durable revenue diversification. This reduces reliance on a single cyclical customer group, supports cross-selling on large programs, and helps stabilize cash flows across telecom capex cycles over months.

Structural Industry Tailwinds

STL operates in markets driven by long-term secular trends—5G rollout, national fiberization, broadband expansion and data-center interconnect. These multi-year investment programs create persistent addressable demand that can underpin order books and utilization over a 2–6 month horizon and beyond.

Moderate Leverage / Equity Base

A relatively stable equity base and moderate leverage afford STL some financial flexibility to fund project-backed working capital or strategic investments. This balance-sheet standing can support bidding for large contracts and absorb near-term cyclical pressure while management executes operational fixes.

Negative Factors

Revenue Decline

A multi-year revenue decline erodes scale benefits and weakens pricing leverage across product and service lines. Falling top-line makes it harder to cover fixed costs, threatens supplier terms and reduces funding for R&D and software development, impairing competitive positioning over the medium term.

Deteriorating Profitability

A swing from profit to loss signals persistent margin pressure and operational inefficiencies. Continued negative profitability undermines reinvestment capacity, increases reliance on external funding, and raises execution risk on large projects, creating structural headwinds for recovery over coming months.

Weak Cash Generation

Intermittent operating cash flow and episodes of negative free cash flow constrain the company's ability to self-fund capex and working capital for network rollouts. This heightens refinancing needs, could limit bidding capacity on large contracts, and increases liquidity risk over the medium term.

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

Financial performance is pressured by declining revenue, a shift from profit (2021) to a loss (2025), and weakening gross/EBIT/EBITDA margins. The balance sheet is moderately leveraged but relatively stable, while cash flow is inconsistent with periods of negative free cash flow, raising liquidity and flexibility concerns.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 above the 20-day moving average (MA) of 95.05, above the 50-day MA of 99.13, and below the 200-day MA of 102.89, indicating a bullish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 61.84 is Neutral, neither overbought nor oversold. The STOCH value of 85.79 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	₹526.00B	29.18	―	1.94%	8.73%	11.33%
KPITTECH	69 Neutral	₹285.79B	39.42	―	0.69%	13.34%	5.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVALON	59 Neutral	₹57.24B	65.01	―	―	46.80%	201.41%
TEJASNET	57 Neutral	₹60.51B	-7.89	―	0.55%	-17.23%	-185.73%
HFCL	56 Neutral	₹104.95B	355.10	―	0.15%	-19.16%	-92.64%
STLTECH	53 Neutral	₹51.89B	-120.63	―	―	-14.27%	78.52%

Sterlite Technologies Limited Corporate Events

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.

Sterlite Technologies Approves Financial Results for September 2025

Sterlite Technologies Limited’s Board of Directors has approved the unaudited financial results for the quarter and half-year ending September 30, 2025. This approval includes both standalone and consolidated financial results, reflecting the company’s ongoing financial health and operational performance. The announcement indicates a strategic focus on transparency and regulatory compliance, which could positively impact stakeholder confidence and market positioning.

Sterlite Technologies Reports Financial Results for September 2025 Quarter

Sterlite Technologies Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, by its Board of Directors. The announcement highlights the company’s adherence to regulatory requirements and provides stakeholders with insights into its financial performance, indicating stability and transparency in its operations.