Sterlite Technologies Q2 FY27 Results Show 12,817% Profit Jump on AI Infrastructure Boom

Record-Breaking Q2 FY27 Results Driven by AI Infrastructure Demand

Sterlite Technologies reported its strongest quarterly performance in Q2 FY27 results, with net profit soaring 12,817% year-on-year to Rs 517 crore compared to Rs 4 crore in the same period last year1

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. Revenue from operations surged 145% to a record Rs 2,529 crore from Rs 1,034 crore, while EBITDA jumped sixfold to Rs 846 crore from Rs 141 crore1

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. On a sequential basis, net profit rose 162% from Rs 197 crore in the June quarter, while revenue increased 32% from Rs 1,910 crore1

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. The operational EBITDA margin expanded to 27.1%, marking a significant 624 basis point improvement quarter-over-quarter2

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. The company achieved a net debt-free balance sheet with net cash standing at Rs 703 crore, up from Rs 483 crore in the previous quarter3

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AI-Ready Digital Infrastructure Fuels Unprecedented Order Book Growth

Sterlite Technologies secured multi-year contracts worth billions, pushing its open order book to a record Rs 35,274 crore at the end of September, providing substantial revenue visibility for coming years1

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. Total order intake reached Rs 32,026 crore in H1 FY27, representing a 4.2x increase from the full-year FY26 figure of Rs 7,687 crore2

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. Among the major wins was a $1.2 billion long-term agreement with a hyperscaler to supply optical connectivity products between calendar years 2026 and 2030, valued at approximately Rs 11,500 crore1

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. The company also received a $1.11 billion product award letter from another hyperscaler for supplies between FY27 and FY29, worth approximately Rs 10,500 crore1

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. Additional contracts included a $288 million deal for high-density optical fibre cables between 2027 and 2029 valued at Rs 2,700 crore, and a $210 million agreement with a leading telecom infrastructure company worth Rs 2,000 crore for the same period1

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Hyperscalers and Data Center Solutions Drive Revenue Mix Transformation

The surging demand for AI-enabled data center infrastructure has accelerated as hyperscalers expand capacity, requiring significantly higher fibre density than conventional cloud infrastructure1

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. The data center and cloud segment now represents 33% of revenue, up from 25% in H1 FY26, reflecting the successful shift toward higher-value integrated solutions2

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. Management said the data center segment is expected to reach 50% of revenue in the current fiscal year3

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. The optical connectivity attach rate reached a record 24% during the first half of FY27, up from 20% in H1 FY26, measuring connectivity revenue as a percentage of optical fiber cable revenue1

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. The company's global ex-China optical fiber cable market share increased to 9% in H1 FY27 from 7% in the prior year period2

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AI Revolution Creates Unprecedented Infrastructure Investment Cycle

According to McKinsey estimates cited in the company's presentation, 70% of data center capacity demand by 2030 will be for AI-specific infrastructure2

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. Global data center capacity is expected to grow from 63 GW in 2025 to 126 GW in 2030, representing a 14.8% CAGR, with U.S. demand alone forecast to more than double from 31 GW in 2025 to 66 GW in 20272

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. The AI boom is creating particularly strong demand for optical connectivity products as the AI revolution reshapes infrastructure requirements2

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. Ankit Agarwal, MD of Sterlite Technologies, stated that "Q2 FY27 is our best quarter yet, with the highest revenue and EBITDA in STL's history. It reflects the strength of demand for AI-ready digital infrastructure"1

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. He added that "the large multi-year agreements we secured this quarter, along with an open order book of Rs 35,274 crore, give us strong visibility as hyperscalers and global telecom operators scale their digital infrastructure and networks"1

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Strong Financial Performance and Upgraded Margin Targets

For the first half of FY27, revenue totaled Rs 4,439 crore, up 116% from the prior year period2

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. Operational EBITDA for H1 reached Rs 1,082 crore with a 24.4% margin, while profit after tax climbed to Rs 714 crore compared to just Rs 14 crore in H1 FY262

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. The reported EBITDA of Rs 1,243 crore included a one-time gain of approximately Rs 161 crore from a U.S. tariff refund2

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. CRISIL upgraded the company's long-term credit rating to 'AA/Stable' from 'AA-', while reaffirming its A1+ short-term rating2

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. Management lifted its FY29 EBITDA margin target to above 30% from 27%, while keeping its FY29 revenue target at Rs 20,000 crore3

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. The company said the higher margin target reflects a stronger order book, a richer product mix, and a larger share of revenue from data center solutions3

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. The company's stock rose 2.39% to $820 from $800.85 following the announcement, reflecting investor confidence in the business transformation underway2

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