Sterlite Electric Limited – FY26 Results

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)

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)

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)

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)

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)

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.