Sterlite Technologies Ltd. (STLTECH) shares fell 5.44% on the National Stock Exchange (NSE) on Friday, closing at ₹88.23. The stock reached an intraday high of ₹94.96 and a low of ₹86.00 before settling lower following the release of the company’s third-quarter financial results for the period ended December 31, 2025. The company’s market capitalization stood at ₹4,307.52 crore at the close of trading on Friday.
Latest Quarterly Results
Sterlite Technologies reported a consolidated revenue of ₹1,257 crore for the quarter ended December 2025, representing a 25.95% increase from ₹998 crore in the same period last year. The company recorded a consolidated net loss of ₹17 crore for the quarter, compared to a net profit of ₹4 crore in the preceding quarter (Q2 FY26) and a net loss of ₹24 crore in the year-ago period (Q3 FY25). Operating EBITDA was reported at ₹129 crore, representing a 16.2% year-over-year growth from ₹111 crore.
Segment Highlights
The Optical Networking Business (ONB) generated revenue of ₹1,174 crore and an EBITDA of ₹131 crore during the quarter. The company stated that its capacity expansions and data center-centric product innovations contributed to the top-line performance. STL Digital expanded its global footprint, reaching a total of 34 global clients and securing a multimillion-dollar contract with a U.S.-based pharmaceutical firm for SAP S/4 HANA implementation.
Financial Trends
Full-Year Results Context
For the full financial year 2024-25, Sterlite Technologies reported annual revenue of ₹4,032 crore, a contraction from ₹5,535 crore in the previous fiscal year. The company posted a full-year net loss of ₹123 crore for FY25, following a net loss of ₹51 crore in FY24, reflecting a trend of continued profitability pressure.
Business & Operations Update
The company announced the completion of Multi-Core Fibre (MCF) trials in collaboration with Colt Technology Services across the London Metro optical network in the United Kingdom. During the quarter, the company secured orders exceeding ₹500 crore for its data center portfolio. The company also expanded its Intelligent Bonded Ribbon (IBR) portfolio with new high-count fibre variants and high-density microcable products.
M&A or Strategic Moves
Management highlighted that the US–India Bilateral Trade Agreement is currently under advanced discussion, which the company identifies as a strategic opportunity for its connectivity solutions in the North American market. No new mergers or acquisitions were formally announced during the reporting period.
Equity Analyst Commentary
Institutional analysts noted the divergence between revenue growth and profitability during the quarter. Reports from market observers cited margin compression and high leverage as primary factors for investor sentiment. Analysts highlighted that the operating margin declined to 9.55% from 12.48% in the previous quarter, attributing the stock’s downward movement to these fiscal pressures.
Guidance & Outlook
The company intends to focus on building AI-ready digital infrastructure and expects growth in the data center segment. Management indicated a focus on innovation in hollow-core fibre and G.654.E technologies. Regulatory developments regarding global trade agreements and domestic telecom infrastructure policies remain key factors to watch for the company’s future performance.
Performance Summary
Sterlite Technologies shares closed 5.44% lower on Friday. The company reported a 26% year-over-year revenue increase to ₹1,257 crore but posted a net loss of ₹17 crore. The Optical Networking Business remains the largest revenue contributor, while margin pressures continue to impact bottom-line results.