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 revenue grew 87.44% year on year and 32.55% sequentially, lifting operating profit growth to 191.67% and 97.44%, respectively.
- Operating margin expanded 7.21 percentage points year on year to 20.16% as expenses grew 71.93%, slower than revenue.
- The 22.52-percentage-point sequential fall in the tax rate supported profit growth, while other income contributed only 4.67% of pre-tax profit.
Price around the results
Revenue acceleration lifts consolidated profit
Sterlite Technologies’ consolidated revenue grew 87.44% year on year and 32.55% quarter on quarter in Q1FY27. Operating profit rose 191.67% year on year and 97.44% sequentially, while net profit increased 1870% and 233.9%, respectively. The sequential improvement followed a 13.53% operating margin in Q4FY26.
Expense control drives the margin expansion
Expenses grew 71.93% year on year and 22.39% sequentially, both below revenue growth, widening operating margin by 7.21 percentage points year on year and 6.63 percentage points sequentially. Interest expense rose 10% year on year but declined 12.7% quarter on quarter. Other income was only 4.67% of pre-tax profit, so it was not the main source of the earnings increase.
Margin recovery continues, but remains above the peer median
Operating margin has risen for two consecutive quarters, from 9.55% in Q3FY26 to 13.53% in Q4FY26 and 20.16% in Q1FY27, after declining through Q3FY26. Among nine Telecommunication peers that have reported, Sterlite’s margin was 1.47 percentage points above the 18.69% median and ranked seventh from the bottom. The year-on-year tax-rate change was limited to 0.27 percentage points, making the latest margin improvement more significant than the tax effect on profit.
Initial stock gain was smaller than its usual results move
The stock rose 2.79% on the results date and was up 1.49% after five sessions. That was below the 4.59% median absolute move across its last eight results reactions. The historical pattern has been mixed, with three gains and five declines.
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 | ₹54 cr | -77.78% | +50.00% |
| Expenses | ₹1,525 cr | ₹1,246 cr | +22.39% | +71.93% |
| Operating profit | ₹385 cr | ₹195 cr | +97.44% | +191.67% |
| Operating margin (%) | 20.16% | 13.53% | — | — |
| 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 20.16% compares with a Telecommunication sector median of 18.69% across 9 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.79% | +3.22% |
| Next session | +1.19% | — |
| 5 sessions | +1.49% | -0.66% |
Volume on the results session was 1.72× its 20-day average.
What to watch
- Whether operating margin holds above 20.16% in the next quarter.
- Whether revenue growth remains ahead of expense growth after the latest 87.44% year-on-year increase.
- Whether the tax rate remains near the latest 23.35% rather than returning to 45.87%.