Sterlite Technologies Ltd has reported a sharp rise in earnings for the fourth quarter of FY26, driven by growing demand for data infrastructure linked to artificial intelligence (AI), 5G, and data centres.
Revenue for the quarter rose 37% year-on-year to ₹14,410 million, exceeding expectations. The company said the increase was supported by higher volumes and improved realisations in its optical fibre cable (OFC) business. On a sequential basis, revenue grew by 14.6%.
Gross profit climbed 50.7% from a year earlier to ₹7,220 million, while gross margins improved to 50.1%, aided by lower raw material costs and inventory efficiencies. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 56% year-on-year to ₹1,950 million, with margins expanding to 13.5%.
Profit after tax (PAT) came in at ₹590 million, marking a significant jump compared to the previous year, with margins improving to 4.1%.
The company said it is benefiting from what it described as a “once-in-a-generation” demand cycle, as AI adoption drives the need for faster and more efficient connectivity. It highlighted the shift in data transmission speeds from 400G to 1.6T, which is increasing reliance on optical fibre while reducing the role of copper-based infrastructure.
As part of this strategy, Sterlite has launched its “Neuralis” portfolio, aimed at AI-driven data centre connectivity. The offering includes high-density fibre cables and new technologies such as hollow-core fibre, which the company says can reduce latency by up to 40%.
Sterlite also reported a strong order book of ₹73.09 billion, up 67% from a year earlier, with a diversified mix of contracts across North America and India. Annual order inflows more than doubled during FY26.
Looking ahead, the company is targeting an EBITDA margin of 20% by the fourth quarter of FY27, supported by a shift towards higher-margin enterprise and data centre segments. These segments are expected to contribute around 30% of revenue, up from 19% in FY26.
A planned capital expenditure of ₹5 billion will be used to expand capabilities in data centre solutions. The firm added that supply constraints in key raw materials such as helium and germanium are expected to ease gradually.
Analysts forecast strong growth over the next two years, supported by global investments in AI infrastructure and the continued expansion of broadband and 5G networks in India.
