Sterlite Technologies Posts Record Q1 as AI Data-Centre Orders Grow

EBITDA reached ₹397 crore, compared with ₹140 crore a year earlier and ₹218 crore in the preceding quarter. The reported EBITDA margin was 20.8%, its highest in nearly 20 quarters. Management attributed the improvement to product mix, operating leverage and a larger contribution from the data-centre business.

The year-over-year profit comparison is unusually large because the base quarter produced only ₹10 crore of profit after tax. The absolute change and the operating margin are therefore more useful than the 870% growth rate alone when assessing the quarter.

STL reported an open order book of ₹18,618 crore at quarter-end. That total includes a previously announced multi-year optical-connectivity contract valued at about $1.11 billion for AI data centres, as well as more than $100 million in orders for its Neuralis data-centre portfolio.

The company also highlighted denser optical-connectivity products intended for 800G and faster networks. These products address a practical constraint in AI facilities: moving more data between computing systems without proportionally increasing cabling space and installation work.

STL said it became net debt-free after completing a ₹1,500 crore qualified institutional placement. That capital position matters because a larger order book can require more manufacturing capacity and working capital before contracts turn into revenue and cash flow.

For data and infrastructure teams, the results are a demand signal for the physical layer behind AI systems rather than evidence about model adoption itself. The next test is execution: converting the order book into delivered connectivity products while sustaining the margin reported this quarter.