Sterlite Technologies has signed a ₹960 crore multi-year deal to supply optical fibre cables to a domestic telecom operator. This order, set for execution in FY28 and FY29, adds to the company's record order book of ₹18,618 crore. The contract follows a strong first quarter for the company, which recently achieved a net-debt-free status after a successful fundraising exercise.
Sterlite Technologies (STL) has confirmed a significant new supply agreement worth ₹960 crore with a domestic telecom company. The contract involves the delivery of optical fibre cables over an initial two-year period, with provisions allowing both parties to extend the partnership for another two years. The company plans to execute this order during the fiscal years 2028 and 2029.
Order Book and Financial Strength
This latest contract strengthens the company's order book, which reached a record high of ₹18,618 crore as of the end of the June quarter. The recent financial performance of Sterlite Technologies has been notable, with the company reporting a net profit of ₹197 crore for the first quarter of FY27, compared to ₹10 crore in the same period a year ago. Revenue for the quarter rose by 87% to ₹1,910 crore. The operating profit, or EBITDA, also hit an all-time high of ₹397 crore, with margins improving to 20.8% from 13.7% in the previous year.
The company has also taken steps to improve its financial health through a Qualified Institutions Placement (QIP), which raised ₹1,500 crore. This capital injection has allowed the company to become net debt-free, a factor that investors often monitor to assess the financial stability of a business during periods of expansion. Following these results, management has raised its EBITDA margin guidance for FY27 to 23%, citing expectations of better capacity utilization and growth in its data center services segment.
Industry Context and Risks
While the company has reported strong growth, the telecom equipment sector remains sensitive to capital spending cycles by domestic telecom operators. Future revenue and margin performance will depend on the pace at which these operators roll out infrastructure and the stability of global optical fibre pricing. Investors may monitor whether the company can maintain its current margin guidance as it scales its newer data center business and manages the execution of its large order book. The primary focus for the coming quarters will be on the company's ability to maintain its debt-free position while funding ongoing operational requirements and meeting the delivery timelines for its substantial order backlog.