Sterlite Technologies approves ₹3,000 crore capex for 50% manufacturing capacity addition

Broadband technology company Sterlite Technologies Ltd (STL) on Thursday (September 3) said it has approved a ₹3,000 crore capital expenditure (capex) plan to expand capacity at its existing manufacturing facility.

The company said the proposed capacity addition will increase its existing installed manufacturing capacity by approximately 50%. The capacity is expected to be added by the end of FY29.

Sterlite Technologies Ltd said the expansion is being undertaken in view of demand for optical fibre cables and connectivity business globally.

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The company's existing capacity utilisation is around 70%. It has not disclosed its existing capacity, citing the commercially sensitive and competitive nature of the information. The proposed investment of around ₹3,000 crore will be financed through internal accruals and/or debt.

Sterlite Technologies said the capacity addition is aimed at catering to anticipated growth in demand and strengthening its manufacturing capabilities. The company's Board of Directors approved the capex and capacity addition at its meeting held on Thursday.

First Quarter Results

Sterlite Technologies reported its strongest-ever quarterly performance for the first quarter of FY27, with net profit surging to ₹197 crore from ₹10 crore a year ago, nearly a 20-fold increase.

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Revenue rose 87% year-on-year to a record ₹1,910 crore from ₹1,019 crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed to an all-time high of ₹397 crore, up about 184% from the year-ago quarter.

The company's EBITDA margin expanded to 20.8% from 13.7%, an improvement of 710 basis points year-on-year and the highest level in nearly 20 quarters.

On a sequential basis, revenue increased 32.5% to ₹1,441 crore, while earnings before interest and taxes (EBIT) rose to ₹385 crore from ₹195 crore. EBIT margin improved to 20.2% from 13.5% in the previous quarter.

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Sterlite Technologies said its open order book stood at ₹18,618 crore at the end of the quarter, the highest in its history. During the quarter, Sterlite Technologies completed a ₹1,500 crore Qualified Institutional Placement (QIP). The company said the fundraise enabled it to become net debt-free while providing capital for its next phase of growth.

Among key order wins, Sterlite Technologies secured a multi-year contract worth $1.11 billion (more than ₹10,000 crore) to supply optical connectivity products for next-generation artificial intelligence (AI) data centres.

Shares of Sterlite Technologies Ltd ended at ₹714.45, up by ₹0.60, or 0.084%, on the BSE.

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