Sterlite Electric Limited – FY26 Results
Kratika Agrawal
Associate Financial AnalystFinancial Analyst at Planify with CFA L2 credentials, focused on valuation modeling and identifying growth opportunities across unlisted and pre-IPO equities.
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Sterlite Electric (formerly Sterlite Power Transmission) is a power transmission products company that designs, manufactures and supplies overhead conductors, OPGW, EHV power cables, master system integration (MSI) services, and dark-fibre "Convergence" solutions. In October 2024 it demerged its transmission-asset ownership business (now Resonia), and FY26 is its first full year as a pure manufacturing/products company. It has filed a DRHP for an IPO.
Revenue, EBITDA, Net Profit & EPS Summary (₹ in Cr, Consolidated, Continuing Operations)
Particulars | FY26 | FY25 | YoY change |
|---|---|---|---|
Revenue | 6,254 | 4,956 | +26.2% |
EBITDA | 491 | 472 | +4.0% |
EBITDA Margin | 7.85% | 9.53% | |
Net Finance Cost | 121 | 155 | −21.9% |
Profit Before Tax | 301 | 262 | +14.9% |
Net Profit (PAT, continuing ops) | 237 | 183 | +29.5% |
PAT attributable to shareholders | 210 | – | |
EPS (Basic & Diluted) | 14.57 | – |
Revenue grew 26.2% on strong conductor and cable demand, but EBITDA grew only 4% as raw-material costs (mostly aluminium) rose 48%, eating two-thirds of every revenue rupee versus 56% a year earlier. Most of the PAT growth came from a lower net finance cost, not operations. Note: the P&L also shows a headline ₹746 crore figure driven by a ₹509 crore unrealised commodity-hedge gain sitting in Other Comprehensive Income — not operating profit, and expected to reverse against FY27 raw-material costs.
Segment / Order Book Mix (₹ in Cr)
Platform | FY26 Revenue Share | Order Book | Order Book Share |
|---|---|---|---|
Overhead conductors & OPGW | — | 3,681 | 56% |
Power cables | — | 1,775 | 27% |
MSI services | — | 753 | 11% |
Convergence (fibre) | — | 410 | 6% |
Conductors + cables (₹ cr) | 4,807 (77% of revenue) | ||
EPC (₹ cr) | 1,164 | ||
Convergence lease income (₹ cr) | 119 | |
Closing order book of ₹6,619 crore is about 1.06x FY26 revenue. Exports fell sharply to 7% of revenue (from 20% in FY25) even as new markets (UK, Nigeria, Oman, Nepal, Bhutan) opened up.
Key Balance Sheet Items (₹ in Cr, Consolidated)
Particulars | FY26 | FY25 |
|---|---|---|
Net worth | 1,993 | 1,434 |
Gross borrowings | 609 | 327 |
Cash + bank balances | 1,402 | 1,224 |
Net cash | 793 | 896 |
Inventories | 552 | 367 |
Trade receivables | 1,259 | 1,082 |
Contract assets (unbilled) | 593 | 254 |
Acceptances (supplier credit) | 1,476 | 986 |
Capital work-in-progress | 311 | 90 |
Total assets | 6,060 | 4,259 |
Net worth rose ₹559 crore, but only ₹237 crore of that is earned profit — the rest is largely the unrealised ₹509 crore hedge reserve. Working capital ballooned (net working capital up from ₹1,071 cr to ₹1,686 cr) as inventories, receivables and unbilled revenue all grew faster than sales, funded partly by stretching supplier credit.
Cash Flow (₹ in Cr)
Particulars | FY25 | FY26 |
|---|---|---|
Operating cash flow | 647 | 359 |
Capex | 235 | 298 |
Dividend paid | 12 | 83 |
Net change in cash | +102 | −65 |
Operating cash flow nearly halved despite 30% profit growth, as the working-capital build absorbed cash. Free cash flow after capex was roughly ₹60 crore.
Key Ratio Analysis (Consolidated)
Particulars | FY26 | FY25 |
|---|---|---|
EBITDA Margin | 7.85% | 9.53% |
Net Profit Margin | 3.79% | 3.69% |
Return on Equity (on closing equity) | ~11.9% | – |
Return on Capital Employed | 16.9% | 24.8% |
Debt-to-Equity Ratio | 0.31x | – |
Debt Service Coverage Ratio | 0.84x | – |
P/E (indicative, ₹478/share) | ~28x | – |
P/B (indicative) | ~3.4x | – |
EV/EBITDA (indicative) | ~12x | – |
At the unlisted indicative price of ₹478 (market cap ~₹6,750 crore on a fully diluted 14.13 crore shares), Sterlite trades at roughly half of peer Apar Industries' earnings multiple (Apar: ~60x P/E, ~13x P/B). ROCE fell from 24.8% to 16.9% as capital deployed into the new Vadodara cable plant (₹311 crore CWIP) hasn't yet ramped into revenue. The ₹478 price sits almost exactly at the FY25 PE round price of ₹473, and a lender (PTC Cables) declined to exercise ₹270 crore of warrants at that same price in FY26.
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