Mumbai, July 17, 2025 – Sterlite Technologies Limited (STL) has achieved a pioneering milestone by commissioning Maharashtra’s inaugural green hydrogen and oxygen production plant dedicated entirely to the manufacture of optical fibre. The facility, established in partnership with Hygenco, supports the company’s bold goal to reach carbon neutrality by 2030 while transforming energy-intensive manufacturing processes within the optical fibre industry.
Advancing Sustainable Manufacturing
Situated at STL’s plant in Chhatrapati Sambhaji Nagar, this innovative green hydrogen plant will supply clean hydrogen and oxygen to STL’s cutting-edge glass preform production line. The preform is a crucial component in the creation of high-quality optical fibres. With this move, STL becomes among the first worldwide optical fibre companies to utilize 100% green hydrogen in furnaces that convert silica into glass, dramatically reducing environmental impact.
Hygenco is responsible for owning and operating the facility, ensuring a steady supply for at least the next two decades. This sustainable initiative is estimated to cut the company’s carbon emissions by approximately 30% annually. Additionally, the plant is equipped with advanced autonomous energy management and real-time monitoring systems enhancing safety and efficiency.
Financial Snapshot and Market Position
- On July 17, 2025, STL’s shares rose to a 52-week peak of ₹122.05, gaining 5.29% amid overall market fluctuations.
- STL reported revenue of ₹1,052 crore in Q4 FY25, with an estimated full-year revenue near ₹3,996 crore.
- Despite a net loss of ₹40 crore in the last quarter due to margin pressures, STL continues to secure strong new contracts including major telecom infrastructure projects.
- Operating cash flow showed significant improvement, registering ₹959 crore in FY24, indicating stronger operational discipline.
Outlook: Growth and Green Innovation
Industry analysts forecast STL to achieve annual revenue growth of around 13-14% over the next three years. Earnings are expected to shift from negative toward profitability as cost efficiencies from green hydrogen adoption materialize. Return on equity is projected to reach approximately 16.2% by 2028.
The company’s strategic green energy shift places it at the forefront of sustainable manufacturing in the optical networking domain, potentially unlocking premium market opportunities globally. Currently, half of the covering analysts recommend purchasing STL stock, with a cautious price target of about ₹92.50.
Final Perspective
STL’s integration of green hydrogen into optical fibre production demonstrates its leadership in industrial sustainability. While still facing profitability challenges, the company’s solid revenue growth, improved cash flow, and environmental initiatives position it as an attractive prospect for investors interested in growth and environmental stewardship alike.
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