Good day, everyone, and thank you for joining STL's quarter four and FY '26 earnings call. I'll begin by highlighting the key takeaways from our investor presentation, and then Ajay will walk you through the financials.

STL is a global leader in digital connectivity infrastructure, serving telcos, data centers, citizen networks, and large enterprises. Our portfolio spans fiber to fiber optic cables, specialty cables, and interconnectivity products.

We're India's number one end-to-end optical manufacturer with over 8% global optical fiber cable market share outside of China, and with more than 30-plus years of leadership, close to almost 800 patents, and 10-plus zero-waste-to-manufacturing facilities worldwide. STL is truly leading the next wave of global digital structure.

At STL, we are amongst very few companies in the world that have mastered the journey from glass to gigabit. It starts with the purest grade of silicon, which we transform through advanced processes like silicon tetrachloride formation, chemical vapor deposition, and high-precision sintering to create ultra-pure glass preforms, which is truly the backbone of optical fiber around the world.

From there, we draw the highest grade fiber, design high-density cables, and develop reliable connectivity products that power data centers and telecom networks around the world. This full-stack integration right from raw material to network deployment gives STL a unique edge in quality, cost efficiency, and innovation across the connectivity value chain.

This deep integration enables us to engineer next-generation fiber, cable, and connectivity solutions that are redefining global connectivity. Our end-to-end innovation from material science to smart optical systems help global network builders create faster, denser, and more reliable networks for the AI era.

As we look forward to FY '27, our priorities are defined. We're focused on expanding our OFC market share while meaningfully increasing connectivity attach rates across deployments.

At the same time, we aim to scale the contribution from our enterprise and data center segments, underpinned by continued technology leadership and a relentless focus on cost optimization. Moving on, we will now speak about the industry tailwinds and the growing market opportunity.

We are at the intersection of three powerful, multi-year, and investment cycles: FTTx, data centers, and 5G are creating a strong structural tailwind for the optical infrastructure. FTTx is accelerating globally, with deployments rising to 151 million fiber kilometers in 2025, going up to 170 million fiber kilometers by 2030.

Just in the US alone, over 100 million homes will be served by fiber 2030, supported by large government projects like BEAD and BharatNet in India. Data centers are simply the fastest-growing driver for fiber demand.

CRU projects that 40% of global growth in optical cable demand from data centers in 2026 alone, driven by hyperscale expansion and AI workloads. North America installed DC capacity is expected to more than double from 60 gigawatts in 2025 to almost 115 gigawatts by 2030.

Hyperscalers' DC capex is expected to increase to a whopping $762 billion. 5G is scaling rapidly, with 6.4 billion subscriptions expected to go to by 2030 and carrying 80% of all mobile traffic.

This requires massive fiber haul, backhaul, fronthaul, and network densification across the board. Together, these three cycles are creating a structural multi-year demand tailwind for the fiber and connectivity, positioning STL at the center of next global digital infrastructure build-out.

Next, we show how global telecom and big tech giants aligned in backing optical fiber as the base of digital future across 5G, broadband, data centers, and AI infrastructure. The takeaway is very simple.

Fiber remains as the backbone of all of the digital infrastructure. Moving on to slide seven shows how the AI revolution and rapid data center expansion are creating once-in-a-generation opportunity for optical connectivity.

As per sources, by 2030, nearly 70% of data center demand will be AI-led, driving a sharp increase in capex and infrastructure intensity. GPU architectures are rapidly shifting from 400 gig to 800 gig and all the way to 1.6 terabit, speeds where copper reaches its bandwidth threshold and fiber becomes essential.

Simultaneously, AI workloads are creating dense fiber interconnections, exponentially increasing fiber per rack. Every new data center multiplies this demand.

This is not just a matter of scale; it's a step change in fiber intensity. With our NeuraLuxe end-to-end AI DC portfolio, STL is uniquely positioned to capture this multi-year structural growth opportunity.

We will cover NeuraLuxe in more detail in the upcoming slides. I'll now address India's data center movement.

India's data center expansion is emerging as one of the most compelling structural tailwinds of optical fiber, and we're uniquely positioned to capture it. You would have read recently in the news about the tremendous updates in Vizag as well.

Installed capacity is set to grow to 5x, from 1.4 gigawatts in 2025 to 8 gigawatts by 2030. What makes this cycle particularly powerful is the breadth of commitment that hyperscalers like Google and Microsoft are deploying tens of billions of dollars, Indian conglomerates like Adani and Reliance anchoring gigawatt campuses, and even domestic majors like TCS are laying out long-term capacity plans.

This is a diversified and resilient demand base. A supportive policy environment, state incentives, power availability and benefits, and tax holidays extending 2047 is further de-risking and accelerating the build-out.

Every dollar of data center capex has a direct multiplier fiber intensity across DCI, metro, and long-haul networks, with optical cable demand projected to grow at 11% CAGR to 2030. This is not a cyclical uptick.

It's a durable, high-visibility growth opportunity playing out right here in our home market in India. According to CRU, global optical cable demand growth for 2026 has been upgraded to about 6.8% year-on-year, following stabilization in 2025, led by mainly the North America's data center build-out and improved execution in China.

Importantly, demand is now consistently outpacing domestic supply North America, keeping the lead times tight. Looking ahead, North America is set to be the main growth engine powered by AI-led data centers, DCI builds, and the continued FTTx expansion.

CRU expects it to deliver the strongest regional CAGR of 15% all the way to 2030. Overall, this points to sustained multi-year upcycle in fiber demand, with North America and APAC ex-China both core STL-focused market drivers growth.

We're also seeing positive momentum in India, Southeast Asia, and parts of Europe, which are closely aligned with our stated strategy. We're successfully seizing new market opportunities, a trend that is clearly visible in our record order book intake this year.

In FY '26, order inflows more than doubled to 7,687 crores, up 109% year-on-year as compared to 3,672 crores in FY '25. This momentum has been driven by series of strategic wins, including large-scale data center projects, predominantly North America, and long-term orders which were secured from Tier 1 telecom operators in India.

Importantly, our order book today is well-diversified, with a healthy mix of order intakes from all customer segments and product categories across regions. Our innovation, as we've always stated, continues to be a key differentiator for STL, and this quarter, we made strong progress across next-generation optical and data center technologies.

The launch of India's first hollow-core fiber cable marks a defining milestone in STL's innovation journey and reinforces our leadership in AI-ready digital infrastructure. This breakthrough enables ultra-low latency and high-bandwidth connectivity critical for hyperscalers and next-generation data centers.

As per current data, the hollow-core fiber is expected to reduce the latency between 35 to 40% in the network, which will be a huge breakthrough. As some of you may have seen, STL launched NeuraLuxe, our flagship AI-era data center connectivity portfolio in the US at Data Center World 2026.

I will cover about that in details in the next slide. Our innovation engine is backed by deep IP portfolio over 780 patents with 21 new filings this quarter, and has been recognized through multiple global awards.

Overall, these advancements reinforce our position as a technology leader, building future-ready capabilities that align closely with AI cloud and high-performance network demands. Slide 17 presents our latest launch of NeuraLuxe, which is our purpose-built portfolio for the AI era of data centers.

It addresses two mission-critical needs: AI whitespace connectivity and high-speed DCI, where fiber density, speeds, and simplicity matter the most. With pre-terminated fiber trunks, high-density arrays, Celesta IBR cables scaling up to close to 7,000 fibers, and intelligent enclosures, NeuraLuxe enables faster deployment and massive GPU clustering.

Leveraging STL's full integration from glass preform to pre-terminated assemblies, NeuraLuxe reduces deployment complexity and accelerates time to service, which is critical for data centers. Supported by local manufacturing in South Carolina, this launch strengthens our position within US hyperscalers as well as the upcoming neo-cloud providers.

Slide 18 highlights STL leadership in multi-core fiber, key enabler for quantum-safe as well as multi-terabit networks. Multi-core fiber allows between 4 to 7 times higher capacity within the same physical footprint, improving space efficiency while lowering deployment infrastructure costs, making it ideal for AI data center, long-haul, 5G, and high-performance interconnects.

We have shown strong capability enabling India's first quantum key distribution over multi-core, completing live 100-kilometer testing, and becoming the first globally to deploy MCF in both aerial and underground networks, further validated by our latest successful trials with Colt, a leading operator in the UK. Overall, this positions STL as the forefront of quantum-safe next-generation optical networks with strong relevance for global hyperscalers and carriers.

As the continuation from our previous call, we have made successful progress on our two next-generation fiber platforms: 654E as well as hollow-core fiber, both designed to address the rapidly evolving requirements of modern connectivity networks. Since then, 654E has been successfully launched and also secured our first commercial order, validating strong customer interest with its 30% lower signal loss, larger core, which will enable higher power, ultra-long-haul DWDM, and DCI applications.

In parallel, we have launched India's first hollow-core fiber, as I mentioned, cable with a true step-change technology with light travels through an air-filled core delivering 30 to 47% lower latency with supporting bandwidth from 800 gig to 1.6 terabit and beyond. Together, these platforms significantly strengthen STL's leadership in high-performance optical networks and position us to be a select group of global players shaping the future of fast, low-latency AI infrastructure.

On market position and attach rate trends, our global ex-China OFC market share remains stable at around 8% in FY '26, demonstrating resilient execution in a challenging environment marked by US tariff impacts and germanium constraints that we spoke about earlier. We remained focused on steadily building our share over time.

In optical connectivity, attach rates moderated to 15% in FY '26 from 22% in FY '25. This was primarily driven by product mix and project timing along with sharp acceleration of OFC revenues, leading to a higher base.

The moderation is temporary, and the long-term opportunity of connectivity remains very strong. Our connectivity is expanding, and we're increasingly focusing on selling integrated solutions rather than stand-alone products.

Taken together, this shows that our core OFC business is stable, while there's a clear runway to drive higher value through attaching long growth over the medium term. I will now hand over to Ajay to take you through the financials.

Thank you, Ankit, and thanks to everyone for joining us today. I'll take you through the key financial highlights for Q4 and FY '26.

STL delivered a strong Q4 finish and solid full-year performance. Q4 FY '26 revenues stood at ₹1,441 crore, reflecting strong 37% year-on-year growth momentum.

EBITDA margins expanded to 15.1%, supported by scale benefits and better product mix. For the full year, revenue increased to ₹4,745 crore, with EBITDA rising to ₹628 crore, a 39% year-on-year growth with margin improving to 13.2%.

PAT also turned positive in Q4 and for the full year, reflecting improved profitability and execution. Overall, the performance reflects our focus on disciplined growth, margin expansion, and stronger bottom-line outcomes.

As you can see in slide 25, despite a challenging external environment, we have delivered consistent operational margin expansion over the last six quarters. Operational EBITDA improved to 15.1% in Q4 FY '26, driven by higher utilization, a stronger product mix, and operating leverage.

While US tariff headwinds have meaningfully moderated from peak levels, adding margins, we are seeing new near-term cost pressures from geopolitical disruption driven by war in West Asia, particularly impacting helium and polymer inputs. Despite these headwinds, our structural margin profile continues to expand in line with our guidance of 20% at reported level by end of the current fiscal.

On segment side, telecom and citizen network remains the core contributor, while enterprise and data centers moderated to 19% in FY '26, primarily due to decline in our copper business because of higher LME prices. Looking ahead, with accelerating AI data center investments and pipeline visibility, we expect the enterprise and data center segment to scale up to 30% of revenues in the current fiscal.

From a geographic standpoint, our revenue mix continues to diversify. North America share increased from 25% in FY '25 to 39% in FY '26, while Europe remains a significant contributor at 40%.

This balanced regional footprint reduces concentration risk and positions us well to capture growth across key global markets. Moving to the order book, we have seen strong momentum this fiscal.

Our open order book stood at ₹7,309 crore in FY '26, up 67% from ₹4,378 crore in FY '25, reflecting healthy order inflows and strong market confidence. Of this, ₹1,468 crore is slated for execution in Q1 FY '27, while the remaining order is scheduled for execution over Q2 FY '27 and beyond.

This robust order pipeline provides strong revenue visibility and reinforces our growth outlook for the year. On slide 28, we have shared an abridged snapshot of our reported numbers for your reference.

Net debt stands at ₹1,128 crore, with debt-to-equity of 0.5 and net debt-to-EBITDA at 1.3x, comfortably below our earlier target of 2x, with a revised ambition of moving below 1.2x. Turning to our IT services business, STL Digital, for FY '26, digital revenue closed at ₹284 crore compared to ₹290 crore last year, while EBITDA improved meaningfully to ₹3 crore, reversing a loss position in FY '25.

This demonstrates our clear focus on sustained profitable growth rather than scale at any cost. In Q4, we added a new UK-based healthcare client, expanding our footprint in data engineering, analytics, and product services.

With nine new customer logos added in FY '26, our total customer base now stands at 35. With this now, I hand it back to Ankit for updates on our social responsibility initiatives and closing remarks.

Thank you, Ajay. STL CSR initiatives continue to create a strong and measured impact across healthcare and education.

This is all aligned with our philosophy that we must give back to society in which we operate. Our flagship healthcare program Swasthya Suraksha won the best rural healthcare initiative for the year 2025 at the Indian Social Impact Awards, recognizing its sustained contribution for rural and tribal healthcare.

In education, the RoboEdge program received the best education support initiative of the year 2025 at the Indian CSR Awards for advancing STEM learning and innovation. RoboEdge students also excel globally at the International Robotex Championship 2025, winning multiple podium positions, nine students representing India showcasing talent, teamwork, and innovation, reflecting STL's commitment to build a stronger, future-ready society.

At STL, sustainability is simply central to our purpose. We're proud to hold a S&P Global CSA ESG score / Sustainalytics / ESG rating and our committed to achieving net-zero emissions by 2030.

Our strategy is built on three pillars: environmental sustainability, since FY '19, we diverted 282,000 metric tons of waste, recycled almost 11 million metric cube of water, and reduced over 440 tons of carbon emissions through energy efficiency. Over 36% of our procurement is local, and we partner with Hygenco to advance green hydrogen successfully.

Social responsibility, aligned with 16 United Nations SDGs, we positively impacted 920,000-plus lives through education, women's empowerment, and healthcare, alongside installing 4,500 kilowatt-hour of solar capacity. With two Big Four auditors and robust governance committees, we earned 100-plus ESG awards since FY '19.

Notably, STL is the world's first optic fiber manufacturer certified for zero liquid discharge and zero waste to landfill, setting a truly industry benchmark. Let me close with our focus areas.

Our goal is driving technology and cost leadership, growing its market in focus markets, increasing connectivity attach rates, and rapidly scaling the revenue contribution from our data center business. This strengthens STL's role as a clear enabler of global digital infrastructure.

With this, I'll close my opening remarks and hand it over to the operator to open the floor for questions. Thank you.

Hello?

Yeah. Ankit, congrats on the great results.

Can you give us some indication on the current utilization levels and any sort of guidance going forward?

I won't comment on specific utilization, but broadly it's improved slightly. As I said, we've called it out, we continue to have constraints with some of our raw materials, and we do expect the constraints to reduce quarter-on-quarter, as I've been stating.

It's more of the same.

Okay. An extension of that question, probably since you mentioned raw materials, any update on the germanium or helium?

We have seen significant, I believe, cost inflation there as well.

The cost continue to be quite high or very high, but, as I said, more importantly for us is getting the availability itself. That is something that continues to be a challenge, but we do expect it to improve quarter-on-quarter.

Okay. Is there a number sort of how far ahead do we have sort of the stocks?

Is it for two quarters, three quarters, four quarters?

Yeah. As I said, we have some amount of volume for the rest of the year.

It's about optimizing and getting more so that we can further utilize our factories. There is some good amount of base we have, and we're continuing to try to get more.

Sure. Great.

Thanks.

Thank you.

Hi, sir. Thank you so much for the opportunity.

I hope I'm audible.

It's a little hazy to hear, but go ahead.

Yeah. I just wanted to understand on the recent QIP approval.

Is it just an enabling resolution to maintain capital raising flexibility, or is there any funding requirement already identified? Also, on the context on the recent capital infusion from the parent level, how should we think about the incremental capital needs for Sterlite Tech?

I'll answer in two parts. The first one on the fundraising.

This has always been a enabling resolution, which we take year-on-year basis. This year also, this needs to be considered as a enabling.

Right now, there are certain capex plans which we are having. We do expect that in near term, we will focus on our technology leadership and upgrading our asset base to support high-value data center portfolio offerings, which can have approximate investment of ₹500 crore.

Got it. Understood.

Sir, my second question would be the kind of tailwind we have been hearing on the data center. How should we look at our growth numbers, since our order book itself has gone up significantly this quarter?

Growth rates and probably the margin guidances you can provide for next year?

Actually, we don't provide this kind of guidance. As we've been sharing, we're very focused on both the data center segment and the telecom segment.

As Ajay said, we are looking at a capex of about ₹500 crores. As you can appreciate, that's happening on the back of our understanding and visibility of the market and the opportunities.

Broadly, I would share that we continue to remain excited about the opportunities, and we're focused on capturing more and more share of this market.

Fair. Sir, what would be our data center share

Sure.

Thank you.

Thanks for the opportunity, and congratulations on very strong numbers, especially the revenue. Ankit, I have one question for you and one for Ajay.

Ankit, basically, I need some color, if you can provide. The strong order book this quarter, was it volume driven purely, or you have seen improvement in realization, as well as if you can quantify contribution from data center within this, if possible?

Nikhil, I can't give you color. I'll have to be black and white.

In seriousness, we don't break that out. I think we've called out broadly the data center and enterprise.

As you can see, the absolute number is growing, and we did have slightly lower copper sales. Overall, it's in the right direction.

I think, as we've discussed and we've shared on these calls, we continue to work on securing long-term contracts and relationships both with telecom operators as well as data centers. That's moving in the right direction.

Got it, Ankit. That was helpful.

Second for Ajay. Ajay, I think you commented two incremental points.

What is, I think, you up-fronted the guidance of reaching 30% from enterprise data center compared to earlier guidance of 12 to 18 months. Second, you also, I guess if I heard it correctly, you mentioned that by end of this year, Q4, you will achieve 20% in EBITDA margin.

Just wanted to understand the lever for the margin, and what changed in one quarter which gave you confidence of up-fronting this guidance? Thank you.

These both are interlinked, actually, Nikhil. If you see, in proportion to our increase in the data center revenue, we are going to witness a good jump in the margins as well.

In all our assumptions, we have kept the tariff at the current rate. That is something which we will have to adapt for going forward.

Right now, if we achieve that 30% rate, which looks like if we do the right execution, we can reach there. We do target to have it by the end of the Q4, the margins which I have mentioned.

Got it, Ajay. Again, very helpful, and congratulations on very strong quarter and all the best for the coming periods.

Thank you. Thank you very much.

Thank you. Thank you.

Yeah. Hi.

Am I audible?

Yes. Yeah.

Good afternoon. Thank you for this opportunity and congrats on a good set of numbers.

A few basic questions to begin with. What's our IBR capacity as of date, and what are our plans to increase it, if any?

Sorry, Rahil, we don't disclose capacities.

Got it. Okay.

Would you be able to share how much of our total preform requirement do we buy from outside as of date, and how much will this increase to as and when we start utilizing optimum capacity of 80, 85%?

Sorry, Rahil, we don't disclose any of these things.

Got it. Okay.

Maybe what we can try is on the hyperscaler side, why is the hyperscaler and DC sales volumes not picking up as much for us while our global as well as local peers are scaling up very well and shifting majority capacities to DC demand? Are we seeing any product quality issues, especially with the 1728 and 3456 fiber count, and hence we are not getting approved by these hyperscalers?

Rahil, I don't know what to say. None of these things exist, what you mentioned.

We're very well-placed with the data center and telco business, and I think we're doing quite well.

Got it. One last question would be, when are we

Sure.

Hello. Congratulations to the entire team for the wonderful performance, and thanks for the opportunities.

My first question is during Q4, OFC prices have witnessed a very sharp increase, particularly from late December or early January. How has been the trend in the realizations of late across the standard OFC and high-frequency data center cables?

How is the difference in prices and what's the delta in margins playing out likely? How are we going to evolve the mix in our favor?

Thank you. I would kind of reiterate what we've been saying through previous calls.

We do not play in the spot market, and we do not sell in the spot market. We're very, very focused on long-term contracts with our select customers globally, particularly in Europe and US and in India.

That's how we look at it. Of course, at any point, if, for example, raw materials or freight or anything is going up and down or tariff, then those are conversations we have with our customers, and we look to see how we can adjust those things.

I am aware that the fiber optic prices have increased, particularly in China and in some other places. We are not selling for many of these applications or to these spot opportunities.

At a macro level, I would say that, yes, the margin profile of selling to the data centers is better, and these are very, very advanced and patented products that we create. More and more of what we sell to this market will be an end-to-end solution, thereby improving our profitability going forward.

Okay. Also, if you can talk about the pipeline and conversion timeline of large hyperscaler deals.

Are we moving towards any multi-year capacity reservation agreements like our global peers? What we are listening yesterday on the conference call, Corning mentioned that after Meta, they have signed two more such similar size and similar tenure deals.

Can we expect something like that? Are we in talks with any of these hyperscalers?

Yeah. I won't comment on any specific names or what our competition has done.

We continue to remain very focused and quite excited about securing long-term contracts both with telecom operators as well as data center companies. We are making good progress, both in terms of our conversations, as well as in terms of our product portfolio and readiness.

I would broadly say we are quite well-placed, and accordingly, as we make progress, we're happy to share that with you.

Okay. That's all.

Thank you and wish you all the best.

Thank you. Thank you very much.

Hello, sir. Thank you for the opportunity.

My first question is on margins first. Given that this quarter has seen partial impact of, the US US tariffs coming down, now how should we look at, margins going forward when the full impact of US tariffs coming from 50 to 15% will come?

Should it be similar, or should it be probably higher somewhat?

See, last quarter, at least in Q4, there was a slight impact only because of the reduction in tariffs, because we need to sell goods in advance to our subsidiaries and all. Going forward, in Q1, there will be a positive impact on account of tariff, while our revenue is expected to increase further from US operations.

There is one more counterpart to it, which is the cost, which is increasing significantly due to this war issue. Broadly, there will be an improvement in the overall margin profile, but that won't be similar to what we are reflecting here.

It will have some impact of the cost increase as well.

Okay. Should it be at similar levels to what is in Q4,

or While I can't give any guidance on that, but it should be on an improving stage from Q4.

Okay. That is my second question, ma'am.

Hello? Yeah.

I just wanted to double-check on this thing that you said that you don't really sell in the spot market side. Now what is kind of stopping us from diverting a few kilometers of capacity to sell in the spot market, except for on a principle basis or on a value basis, to take advantage of this opportunity?

Look, I think we've been in this business for 30 years. I've been in this business 16 years.

I think our learnings from that is that what you want to really make sure and go out of your way is that you're having a large portion of your catering to the right kinds of customers who are building and co-developing with you in terms of products, and it's truly a long-term partnership. That's the philosophy we've chosen, and it requires a certain amount of discipline, because it's easy to get excited about some of these spot prices.

We've chosen that path of discipline, focus on R&D, and creating long-term value. That's the reason.

Okay. Thank you, Ankit.

Thank you.

Hi, sir. Am I audible?

Yes.

Yeah. Sir, we were actually looking at a PPT of OmniCure.

They had some exclusive tie-up with you for germanium. Is their entire capacity enough for us, or we'll need more?

Is the supply started for the same?

Sorry. For confidentiality reasons, we can't share where we stand on this or our suppliers.

It is an important raw material and like helium and some others, and we continue to take strategic actions.

Sir. Post this capex, can we at least tell what will be our capacity for and OFC?

Sorry, we're not going to be disclosing capacities going forward.

Okay. Thanks a lot, sir.

Thank you.

Good evening, sir. Thank you so much for the opportunity.

Congratulations for good set of numbers. Sir, my first question, on the data center side, I think we are launching advanced products like NeuraLuxe, hollow-core fiber, G.654, and I think many products are under pipeline.

If you look at on the international market, big players are taking billion-dollar orders, especially for data center and generative AI and enterprise side. I'm trying to understand whether is there any active pipeline or RFP we have.

Even these data center hyperscaler customers, they are willing to fund and they're willing for risk-sharing agreements. They are more aggressive on building data centers, especially for AI side.

I'm trying to understand whether our products, how we are getting orders, whether we have a pipeline of any billion-dollar orders, especially long-term, maybe 3- to 5-year time frame side. If you could share your thought process on the industry levels and how our products are fit into the market.

Thank you. I think broadly, I would say that we've done some good work.

I'm very proud of our team in terms of the product portfolio we've created. NeuraLuxe is truly cutting edge, what we've launched, and it's truly a great solution that we believe will serve the data center world.

I think we're well-placed, I think, in terms of our portfolio, in terms of the work that we've done. We do have some good customers.

We're working well with them in terms of looking at their long-term requirements. As we continue to make progress and as we continue to grow with them, we'll continue to update you.

Hi. Thanks for taking my question, and congratulations on a good set of numbers.

My question is on the optical interconnect segment. We have seen, in my understanding, some stagnation in the revenue in FY '26.

If we have to say look at the next 2 to 3 years, how should we look at this segment in terms of the growth trajectory? Earlier, we used to look at 50% attach rates.

How are we thinking about that now going forward?

Thank you, Sunny. Look, I think that structurally, yes, the attach rate percentage-wise has come down.

I think it's largely a timing and mix-related factors. There's no change in structural demand.

I think we've been working hard on this for a few years now, building our product portfolio. We've also been working closely with customers to co-develop it for them.

I do see this that, at least on an absolute basis, the revenue should continue to increase over time. There are also certain connectivity products that are required for the data center segment, which we are evaluating and looking at.

I think combined both of these, what are the attach rates required for the home portfolio, home connectivity as well as data center connectivity, I do see this growing year-on-year going forward.

The rate of change will be visible in the near term, or this will take some time in terms of starting to reflect on the revenue growth?

I'd say broadly over the year, you'll see the growth. It's tough to kind of predict the timing because of the approval process and cycle.

We are making progress quarter-on-quarter, for sure.

Sure. My second question is more on the medium-term outlook.

Historically, we have seen cyclicality play a role in the optic fiber demand. Based on our past learnings across cycles, how are we looking to reduce or rationalize that risk of cyclicality, and how successful have we been in terms of getting some longer tenure contracts, better visibility over, say, 2 to 3 years?

While we see that the near-term demand remains robust, but assuming that there is some slowdown or some cyclicality in the demand, how are we looking to kind of reduce that risk per se?

I think both, I would cover it in three ways. One, I think at a principle level, we do strongly believe that these are kind of multiple tailwinds in parallel.

You've got 5G, 6G coming up in a couple of years. Then you've got fiber to the home.

You've got rural massive connectivity that will happen with BEAD, BharatNet, and everything else. Then you've got optic fiber for drone applications, which I think are currently in couple of places, but could spread further.

Then you've got this kind of multifold growth because of the data center side. At some level, we do believe that these are tailwinds over a longer period of time, number one, and it's not just the telco up and down cycles that we're dealing with.

That gives us some level of confidence. I think to your point, I think it's back to what I've been sharing so far, is that we are very, very focused on the longer-term contracts rather than playing in the spot market or trying to make a quick buck.

We do expect that we will make good progress on this quarter-on-quarter.

Yeah. Hello.

Yes,

Yes. Namaskar, sir.

Hope I'm audible. Yes,

yes.

Sir, firstly, pertaining to this Prysmian Cables litigation, what is the last we have heard on the same, and any date that we have for the litigation or at what stage are we? Sir, secondly, in continuation to the tariff part, we have also seen that the US government has been asked to revert the amount which they have collected as tariff.

I think so we have paid tariff on the sales that we have done to the US, the geography of US. Where are we in terms of these two aspects, sir?

Thank you. I think on the legal matter, we had filed our appeal in September 2025.

That's where it is. That's progressing.

As I said, we continue to believe we have a very strong case, and we do and hope for a favorable outcome in that matter. I think in terms of the tariff rebate, you're right, there is a process that's got kick-started in the US for repayment of tariff to the importer on record.

To that extent, we will follow that process, but we can't give a clear timeline right now of when and how much of those refunds will come. We can probably update you in the next earnings call.

Sir, what amount we have paid as tariff is there with you so that you can share whatever is the refund that will happen in due course. You can share the amount, at least, how much we have paid as tariff?

I think so 6 to 7% of EBITDA was negated because of this, if I remember correctly, in the last quarter or the before quarter when the tariffs were at 50%.

I think broadly, it will be north of 100 crores.

North of 100 crores. Sir, hypothetically, with this judgment

Madam, I will only conclude. Won't be getting opportunity again, ma'am.

Just a small point. Sir, in case that judgment comes, do we have any other option to appeal higher, or what would be the process going ahead with the Prysmian part?

I think so that's a huge liability of $100 million. Sir, kya next step kya rahega usme, sir?

Yeah. There's, in fact, two more steps.

One, currently, this is in a bench of three judges. You can then appeal to ask for all the judges to be present and to again evaluate the matter.

If again after that, then again we can appeal to the Supreme Court. There are two more stages so-called after this.

Hello, sir. Thank you for the opportunity and congratulations on a good set of numbers.

Again, sir, bringing back to the earlier participants' question. I know, we have been in discussion with the hyperscalers since along and you are making good progress, right?

Given our capabilities and I'm just trying to understand there should be some progress made, right? I just wanted to understand what could be the timeline where we look to close this, let's say, orders or deals or any LOIs with the hyperscalers, because almost a 3 to 4 months we are into discussion and then, let's say domestic peers, global players getting those orders.

Just wanted to understand what are the timeline on this orders or are we facing any problems on that side?

No. As I said, at least I don't think we are facing any orders.

We are continuing to expand our product portfolio that can serve this market, and we've got good feedback from our customers. We continue to get orders from them, and, as I said, we're making good progress with the hyperscalers in terms of what could a longer-term partnership be.

That's the conversations that are going on.

Okay. Sir, are we at least in the testing mode of our products with the hyperscalers?

I think we already shared last quarter, we're actively now supplying into this market.

Got it. Sir, I think we were upgrading our line to the IBR for higher fiber counts.

Is the capex on track? I think it was supposed to get live by 20 June 2026, right?

We don't comment about specific product lines, etc., I won't be able to comment on that.

Sir. Got it.

Thank you.

Thank you.

Thank you, everyone, for taking your time to hear us out. We remain excited and motivated to drive this business forward and to unlock its full potential.

Through our efforts, we see a tremendous opportunity to connect the unconnected across the world, and especially here in India. We truly believe STL is well-positioned to play a pivotal role in building the digital infrastructure of the future and of our country.

We're happy to take any questions of yours. For any queries or clarifications, you can reach out to our investor relations team, and Ajay and I will both be available.

Once again, thank you for your time and your continued support. Jai Hind.