Sterlite Electric IPO

Strengths · 8

• 01Revenue from operations grew from Rs 3,278.65 crore in FY2023 to Rs 4,955.76 crore in FY2025, with EBITDA of Rs 543.06 crore in FY2025.
• 02Total borrowings fell from Rs 4,611.45 crore at 31 March 2023 to Rs 327.22 crore at 31 March 2025. The debt to equity ratio was 0.23 in FY2025 against 3.06 in FY2023.
• 03The company reported net cash surplus of Rs 896.32 crore at 31 March 2025, against net debt of Rs 163.60 crore a year earlier.
• 04Cash flow from operating activities (continuing operations) was Rs 646.58 crore in FY2025.
• 05The closing order book was Rs 7,449.00 crore at 31 March 2025, up from Rs 6,483.00 crore a year earlier and Rs 4,588.00 crore at 31 March 2023.
• 06Return on capital employed was 28.30% in FY2025 against 6.31% in FY2023, and return on equity was 13.23%.
• 07Top 10 customers gave 46.00% of revenue in FY2025, down from 66.72% in FY2023.
• 08Certified conductor capacity rose from 93,574 MT at 31 March 2023 to 1,17,196 MT at 31 March 2025.

Risks · 10

• 01Top 10 customers gave 46.00% of revenue from operations in FY2025 and 56.82% in FY2024.
• 02Top 10 suppliers made up 83.22% of the cost of raw materials in FY2025, against 74.63% in FY2024.
• 03Overhead conductors were 63.94% of revenue from operations in FY2025, so the business leans on one product line.
• 04Profit after tax fell from Rs 230.13 crore in FY2024 to Rs 183.03 crore in FY2025, and PAT margin was 3.66% against 4.64%.
• 05Cash flow from operating activities (continuing operations) was negative at Rs 165.71 crore in FY2024, mainly on a rise in trade receivables of Rs 370.26 crore.
• 06Exports were 20.19% of revenue from operations in FY2025, against 33.71% in FY2024, so overseas demand can move the numbers.
• 07Of the Rs 252.60 crore total capex cost, Rs 225.00 crore comes from the fresh issue. The amount for general corporate purposes is not fixed and can go up to 25% of the gross proceeds.
• 08Half of the offer by share count, 77,95,803 shares, is an offer for sale, so that money goes to the sellers and not to the company.
• 09The company has 54 tax proceedings against it worth Rs 71.96 crore along with one material civil case. Against the promoters there are 4 criminal proceedings, 1 regulatory proceeding and 2 SEBI or stock exchange disciplinary actions.
• 10Contingent liabilities at 31 March 2025 include a liquidated damages claim of Rs 20.66 crore and performance guarantees of Rs 160.00 crore given on behalf of a related party contract.

Sterlite Electric Limited (formerly Sterlite Power Transmission Limited) is a manufacturer of capital goods and a provider of system integration solutions for the power transmission and distribution industry. It sells in India and abroad. The company was incorporated on 5 May 2015 and has its registered office in Pune and its corporate office in Gurugram.

The company makes and supplies overhead conductors, power cables, and optical ground wire (OPGW). It also offers master system integration (MSI) services. In FY2025, overhead conductors and OPGW cables brought Rs 3,318.61 crore of segment revenue, power cables Rs 842.04 crore and MSI Rs 862.04 crore. Overhead conductors alone were 63.94% of revenue from operations.

Customers include domestic and global utilities, renewable and transmission developers, metro projects and industrial users such as data centers, steel, oil and gas, and cement. The company says it served customers in over 70 countries between 1 April 2022 and 31 March 2025, including the USA, Brazil, Sweden, South Africa, Egypt, UAE, Chile and Peru. Exports were 20.19% of revenue from operations in FY2025, against 35.99% in FY2023.

The certified capacity at 31 March 2025 was 1,17,196 MT a year for overhead conductors, 21,000 km for OPGW and 2,400 km for power cables. The closing order book at 31 March 2025 was Rs 7,449.00 crore: Rs 5,389.00 crore in overhead conductors and OPGW, Rs 1,529.00 crore in power cables and Rs 531.00 crore in MSI services. The company had 432 permanent employees.

The restated numbers are for continuing operations. The document notes that financial information at 31 March 2023 is not comparable with 31 March 2024 and 31 March 2025. Anil Agarwal and Twin Star Overseas Limited are the promoters. Pravin Agarwal is the Chairman and a non-executive director.

The industry

The company's industry report is by CRISIL, commissioned and paid for by the company. It puts the Indian conductor market at Rs 185 billion in FY2025 and expects a CAGR of about 5-6% from FY2025 to FY2030, reaching Rs 230-250 billion by FY2029. India's cables and wire market was about Rs 1,951 billion in FY2025 and is expected to grow at a CAGR of 11-13% between FY2025 and FY2030 to reach Rs 3,350-3,550 billion by FY2030. The report links the demand to rising generation capacity, renewable energy targets and a more interconnected grid.

Customer concentration: Top 10 customers gave 46.00% of revenue from operations in FY2025, 56.82% in FY2024 and 66.72% in FY2023.