Sterlite Technologies

“So we would definitely like to perform or better what we have reported in Q2 of this financial year. So the target of Lakshya aligns with the target of what we plan to try to achieve from Q3 onwards.”

“We're also building a new greenfield site as part of our capex to increase our termination capability.”

“So overall, as a result of this, our utilization continues to improve quarter-on-quarter.”

“At the same time, we want to start executing some of our capacity projects and bringing those online in the next few quarters.”

“Our open order book stands at record INR35,274 crores, up 4.6x from INR7,687 crores at the start of this financial year.”

“Of this, about INR3,021 crores is scheduled for execution in Q3 FY '27 and the rest over Q4 FY '27 and beyond.”

“The largest win this quarter is a new 5-year agreement with a potential value of $1.2 billion. It is with another global hyperscaler for AI-ready optical solutions.”

“In the first half of FY '27, we secured orders worth INR32,000 crores. This is roughly 4x the orders we won in the whole of FY '26.”

“This builds on the $1.11 billion product award letter for optical connectivity that we announced last quarter from another hyperscaler.”

“North America shares stood at 61% in H1 FY '27, driven by robust demand across AI and cloud infrastructure, while Europe contributed 21% and rest of the world represented 18%.”

“So as we move forward, more and more of our sales will be these high-end products, which all come under our Neuralis portfolio.”

“anything that is commoditized, low-end fiber or cable that we are reducing that significantly.”

“Supported by local manufacturing in South Carolina, this launch strengthens our position with the U.S. hyperscaler and neocloud providers.”

“We continue to have conversations with other data center companies and telco operators.”

“So clearly, there is a macro commitment and focus on the hyperscalers to continue to build this out at least for 7 to 10 years with a fair level of clarity.”

“And so equally, that gives us comfort as well and also in our conversations that these investments, certainly by the larger hyperscalers will continue well beyond 2030.”

“CRU recently upgraded its 2026 demand projections for this segment to 89% year-on-year, up sharply from 63% last quarter.”

“Over the next years, this installed capacity is set to increase nearly sixfold to almost 10.5 gigawatts by 2031.”

“Our operational EBITDA for Q2 FY '27 came in at INR685 crores, delivering 27.1% margin or significant quarter-on-quarter expansion of 624 basis points.”

“Excluding this one-off item, our 27% operational margin reflects strong underlying fundamentals driven by higher capacity utilization, a richer product and customer mix and an increasing share of high-value optical connectivity.”

“And as we've shared, we've clearly been able to move our mix strongly towards data center portfolio, which has higher margins.”

“So happy to share that we have seen an improvement in our ability to procure our raw materials.”

“On an H1 basis, operational EBITDA reached INR1,082 crores at a 24.4% margin, reflecting strong profitability across the first half.”

“On the balance sheet, our net cash balance has improved to INR703 crores from INR483 crores reported last quarter, and we continue to be a net debt-free company.”

“CRISIL has further upgraded our long-term rating to double AA stable from AA- and reaffirmed our short-term ratings at A1+.”

“So broadly in order to make -- reduce our gross debt also we have prepaid a few of the loans, which were due at a later stage, and there were some penalties related to the prepayments, which we have squared off.”

“Going forward, we'll look forward to reduce the net finance costs subsequently, and that will be visible from Q3 onwards.”

“Equally at the same time, we are working a lot on the -- improving our debtors and the inventory levels, which will be reflected from next quarter.”

“Firstly, our G.654.E fiber is now fully commercialized and delivers 30% lower signal loss.”

“Secondly, Hollow Core Fiber, our HCF cable that offers between 30% to 47% lower latency has transitioned into the first commercial pilot phase.”

“The highlight this quarter is the launch of our Pre-Terminated Trunk Assemblies in September.”

“Note that reported EBITDA for Q2 FY '27 was INR846 crores, which includes a onetime net gain of INR161 crores from a U.S. tariff refund.”

“Broadly, we have got refund of almost everything. There is a Phase 3, which is going on currently, and there's a small amount, which we have already applied for.”

“That is broadly related to one of our subsidiaries, which is Speedon Networks. There, we have taken the impairment to square it off in full.”

“There are significant challenges for the entire industry around the installation and maintenance of these networks.”

“But also, we have to be mindful that there are some local execution challenges around land, power, water and other local opposition.”

“This quarter, revenue reached INR2,529 crores, representing growth of 145% year-on-year basis and 32% quarter-on-quarter basis.”

“maintain our product edge, we are committing 2% of our annual revenue into R&D”

“On market position and attach rate trends, our global ex-China OFC market share increased to 9% in H1 FY '27, up from 7% in first half of FY '26.”

“I'm pleased to report that our attach rate has reached an all-time high of 24% in H1 FY '27, up from 20% in H1 FY '26.”

“On an H1 basis, revenue grew to INR4,439 crores, up 116% compared to H1 FY '26.”