Sterlite margin surges to 23.98% as revenue jumps 87.44%
Revenue growth outpaced expenses, while a 22.52-point sequential fall in the tax rate further supported net profit.
Filed 24 Jul 2026, 14:45 IST · Sterlite Technologies Ltd (STLTECH)
Key takeaways
- Consolidated operating margin expanded by 11.07 percentage points QoQ to 23.98% as revenue grew faster than expenses.
- Consolidated net profit rose 1,870.00% YoY to Rs 197 cr, helped by an 87.44% increase in revenue and a broadly unchanged tax rate.
- The stock gained 2.94% on the results day, below its 4.59% median absolute move after the past eight results.
Price around the results
Revenue recovery widened in Q1FY27
Sterlite Technologies reported consolidated revenue growth of 32.55% QoQ and 87.44% YoY, taking operating profit growth to 146.24% QoQ and 3,171.43% YoY. Expenses rose 15.70% QoQ and 44.48% YoY, so revenue growth outpaced costs in both comparisons. This lifted operating margin by 11.07 percentage points QoQ and 22.61 percentage points YoY.
Lower tax rate added to the profit gain
The consolidated tax rate fell by 22.52 percentage points QoQ to 23.35%, which amplified the operating improvement in net profit. Interest expense declined 12.70% QoQ but was 10.00% higher YoY. Other income contributed 4.67% of pre-tax profit, so it was not the main source of the quarter's earnings.
Margin recovery is now visible across the recent trend
Operating margin improved from 0.10% in Q2FY26 and -1.11% in Q3FY26 to 12.91% in Q4FY26 and 23.98% in Q1FY27. This is a sharp reversal rather than another quarter of decline. Even after the expansion, the margin was 2.77 percentage points below the 26.75% median for four Telecommunication peers that had reported, placing the company third from the bottom.
Shares rose, but less than the stock's usual result-day move
The stock returned 2.94% on the results day after opening with a 3.74% gap down. Its previous eight results produced three upward moves and five declines, with a median absolute move of 4.59%, making this reaction smaller than its typical move. Trading volume was 1.72 times the reference level.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,910 cr | ₹1,441 cr | +32.55% | +87.44% |
| Other income | ₹12 cr | ₹23 cr | -47.83% | +50.00% |
| Expenses | ₹1,452 cr | ₹1,255 cr | +15.70% | +44.48% |
| Operating profit | ₹458 cr | ₹186 cr | +146.24% | +3171.43% |
| Operating margin (%) | 23.98% | 12.91% | — | — |
| Interest | ₹55 cr | ₹63 cr | -12.70% | +10.00% |
| Depreciation | ₹85 cr | ₹77 cr | +10.39% | +10.39% |
| Profit before tax | ₹257 cr | ₹109 cr | +135.78% | +1876.92% |
| Tax | ₹60 cr | ₹50 cr | +20.00% | +1900.00% |
| Net profit | ₹197 cr | ₹59 cr | +233.90% | +1870.00% |
| EPS (₹) | ₹4.03 | ₹1.21 | +233.06% | +1915.00% |
Operating margin of 23.98% compares with a Telecommunication sector median of 26.75% across 4 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.94% | +3.37% |
Volume on the results session was 1.72× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 23.98% after the recent expansion.
- Whether revenue growth remains ahead of expense growth after the latest 32.55% QoQ revenue increase and 15.70% expense increase.
- Whether the consolidated tax rate stays near 23.35% rather than returning to Q4FY26's 45.87%.