Synopsis:
Shares of Sterlite Technologies Limited dropped after its US subsidiary, Sterlite Technologies Inc., was ordered to pay USD 96.5 million in a legal dispute with Prysmian Cables and Systems. The matter remains sub-judice, with the company planning to appeal, while the financial implications remain uncertain.
A telecom and networking stock slipped sharply after a US jury upheld a significant damages award against its subsidiary in a legal dispute. Investor sentiment turned cautious as the development raised concerns around potential regulatory challenges.
Sterlite Technologies Limited, with a market capitalization of Rs. 5,286 crore, opened at Rs. 110.10 against a previous close of Rs. 114.60. The stock touched an intraday low of Rs. 105.90, marking a fall of 7.6 percent from the previous close.
What’s the News?
Prysmian Cables and Systems USA filed a complaint in the U.S. District Court, District of South Carolina, against Sterlite Technologies Inc. (STI), the US arm of Sterlite Technologies, and one of its employees, Stephen Szymanski.
The plaintiff alleged that Szymanski breached non-compete and confidentiality agreements and disclosed sensitive information to STI, giving it an undue competitive advantage. Sterlite Technologies Limited (“STL”) is not a party to this dispute and no claims have been made against STL.
Following a three-week trial, the jury awarded USD 200,000 in damages against Szymanski and USD 96.5 million against STI. On August 29, 2025, the Court affirmed the verdict while denying the plaintiff’s motion for prejudgment interest.
While Sterlite Technologies Limited itself is not a party to this dispute, STI has stated that the judgment is unsupported by testimony, evidence, and law, and will pursue all available post-trial remedies, including an appeal. The matter remains sub judice, and the ultimate financial impact will depend on the outcome of appellate proceedings.
According to industry sources, the ruling could also affect Sterlite’s credibility in bidding for federally funded US infrastructure projects, including the USD 42.45 billion BEAD broadband program, which mandates strict regulatory compliance.
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Financial Snapshot
On a quarter-on-quarter basis, revenue declined by 3.1 percent to Rs. 1,019 crore in Q1FY26 from Rs. 1,052 crore in Q4FY25. Operating profit rose by 5.6 percent to Rs. 132 crore from Rs. 125 crore. The company turned profitable at the pre-tax level, reporting Rs. 13 crore against a loss of Rs. 43 crore. Net profit similarly swung to Rs. 10 crore from a loss of Rs. 40 crore in the previous quarter.
On a year-on-year basis, revenue increased 16.9 percent from Rs. 872 crore in Q1FY25 to Rs. 1,019 crore in Q1FY26. Operating profit more than doubled, rising 106.3 percent from Rs. 64 crore to Rs. 132 crore.
Pre-tax results improved significantly, with a profit of Rs. 13 crore compared to a loss of Rs. 62 crore in the prior year period. Net profit stood at Rs. 10 crore versus a loss of Rs. 48 crore, marking a turnaround.
About the Company
Sterlite Technologies Limited, headquartered in India, delivers end-to-end data network solutions across optical networking, global services, and digital technology solutions. Its optical networking business designs and manufactures optical fibers, cables, and interconnect products, while the services arm focuses on fiber rollout, network deployment, and system integration.
The digital and technology segment supports telecom and enterprise digital transformation through offerings such as optical connectivity, FTTx access networks, fiber deployment, and modernization solutions.
Written By Manan Gangwar
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