STERLITE POWER – ORIGINS AND EVOLUTION
Sterlite Power was established in 2015 under the Vedanta Group, promoted by the Anil Agarwal family. In 2016, the business was formally carved out of Sterlite Technologies to focus exclusively on the power transmission sector. Vedanta holds approximately 75% ownership in the company. Over the past three decades, Sterlite has built a robust portfolio in transmission infrastructure, successfully executing 33 projects spanning 16,529 circuit kilometres across India and Brazil. It also sponsors India Grid Trust, one of the country’s largest power sector InvITs.
The company operates through two primary business verticals:
- Transmission Infrastructure – Development of greenfield and brownfield transmission projects under BOT/BOOT concession models, with typical concession periods of 25–35 years.
- Products & Solutions – Manufacturing high-performance conductors, extra-high voltage (EHV), high-voltage (HV), and medium-voltage (MV) power cables, optical ground wire (OPGW), and associated hardware. This segment also delivers specialised EPC services, including uprating, upgrading, and fiberization of existing transmission lines to enhance capacity and reduce losses.
Sterlite Power commands a leading position in India’s private transmission sector, with an estimated 26% share of tariff-based competitive bidding (TBCB) projects. Its global footprint spans product supply to over 70 countries, while domestically it has a presence across multiple states. In Brazil, the company continues to expand its concession-based infrastructure portfolio. The industry backdrop is strongly supportive, driven by India’s energy transition and the need to integrate large-scale renewable capacity into the national grid. The Ministry of Power estimates an investment requirement of approximately ₹2.44 trillion by 2030 for interstate transmission systems (ISTS), offering a substantial growth runway for Sterlite’s order pipeline. The company’s Managing Director, Pratik Agarwal (nephew of Anil Agarwal), leads its strategic growth and expansion initiatives.
DEMERGER INTO STERLITE ELECTRIC AND STERLITE GRID 5
In October 2024 Sterlite executed a strategic demerger into two focused companies. Each Sterlite Power shareholder got one share of Sterlite Grid 5 for each Sterlite Power share (1:1 swap). The split was driven by investor interest (e.g. Singapore’s GIC wanted a stake in transmission assets) and to “purify” business lines The structure is now:
- Sterlite Electric (SPTL, formerly SPTL): Houses all Global Products & Solutions (GPS) – cables, conductors, OPGW and specialized services. This is the legacy manufacturing/EPC arm. It remains listed only in the unlisted market (IPO planned).
- Sterlite Grid 5 Ltd (SGL5): is the holding entity created post-demerger (effective October 2024) for Sterlite Power’s transmission infrastructure business. All BOT/BOOT transmission projects across India and Brazil were transferred here. This enabled focused governance, tailored capital strategies, and better alignment with long-term infrastructure investors such as GIC
- Resonia (formerly Sterlite Grid 32 Ltd) is the operating arm of Sterlite Grid 5 Ltd (SGL5), created to execute and manage Sterlite Power’s transmission projects. A joint venture with 51% ownership by Resonia and 49% by GIC, it manages concession-based assets across India (Maharashtra, Madhya Pradesh, Uttarakhand). The structure enables Sterlite Power to tap global capital while retaining operational control for efficient project execution and long-term management.
This separation allows each to pursue capital and strategies tailored to its profile: Sterlite Electric can list as a pure-play cable/conductors business, while Sterlite Grid 5 can scale by raising project finance (e.g. JV with GIC). (Sterlite also launched a separate renewable venture “Serentica” under Sterlite Power; existing Sterlite shareholders have no stake in Serentica)
STERLITE ELECTRIC (PRODUCTS & SOLUTIONS)
Sterlite Electric focuses on manufacturing and solutions for transmission infrastructure. Its portfolio spans high-performance conductors (ACSR, AAC, ACCC), EHV/MV/LV cables, optical ground wire (OPGW), and associated grid hardware. Beyond products, it offers grid-enhancing solutions such as fiberization and uprating kits. The company operates four advanced manufacturing facilities and leverages in-house EPC expertise to deliver turnkey projects. Its Global Products & Solutions (GPS) division has scaled rapidly, with ~₹2,715 Cr in order wins in H1 FY25 and an order book of ~₹6,700 Cr as of Nov 2024. Revenues are driven primarily by product sales (domestic and exports to 70+ countries) and EPC contracts.
STERLITE GRID 5 LTD (SGL5)
Sterlite Grid 5 serves as the infrastructure arm, holding Sterlite’s regulated transmission concession assets. These include BOT/BOOT projects in India and Brazil, with major assets in states such as Maharashtra, Madhya Pradesh, and Uttarakhand, along with international projects like the India-Myanmar grid interconnection. Each project typically carries a concession of 25–35 years, generating long-term regulated tariffs. Transmission lines under SGL5 generally range from 800–2000 MW capacity. This business provides stable, annuity-like revenues, with upside from potential asset monetisation into the listed InvIT vehicle (India Grid Trust).
RESONIA (FORMERLY STERLITE GRID 32 LTD)
Sterlite Grid 32 Ltd (SGL32), now rebranded as Resonia, functions as the operating arm of Sterlite Grid 5 Ltd (SGL5), the infrastructure holding platform of Sterlite Power. Established specifically to execute and manage transmission projects, Resonia plays a central role in the joint venture with GIC, Singapore’s sovereign wealth fund, under which ownership is structured as 51% with Resonia and 49% with GIC. Through this arrangement, SGL5 channels its execution responsibilities to Resonia, enabling efficient project development, financing, and long-term operations under regulated concession frameworks. The JV structure allows Sterlite Power to tap into global institutional capital from GIC while retaining operational control via Resonia, thereby reinforcing its strategy of scaling and managing large transmission assets across India and international markets.
PRODUCT COMPARISION
| Company | Asset Type | Geographic Footprint | Scale / Examples | Revenue Model |
| Sterlite Electric (Products & Solutions) | Manufacturing plants (cables, conductors, OPGW) + EPC capabilities | India (plants), Global exports to 70+ countries | 4 advanced manufacturing facilities; GPS division with ₹6,700 Cr order book (Nov 2024) | Product sales (conductors, cables, OPGW), EPC contracts, grid-enhancing solutions |
| Sterlite Grid 5 (Holding Arm) | Transmission line & substation assets under BOT/BOOT concessions | India (Maharashtra, MP, Uttarakhand,) | – Dividends / Interest / Upstreaming from SG32. – Gains from stake dilution, InvIT monetisation, or refinancing. | Regulated tariff income over 25–35 year concession periods; potential monetisation via IndiGrid InvIT |
| Sterlite Grid 32 (Operating Arm) | Transmission line & substation assets (placed as SPVs) | India (various states; predominantly Rajasthan, Maharashtra, Northeast) | Mumbai Urja Marg major BOOT line project:-Neemrana-II, Kotputli project, Green Energy Corridors, Nangalbibr Bongaigaon line in Northeast | Long-term, regulated tariff income from concessions (25–35 years) |
FINANCIALS
PROFIT & LOSS STATEMENT
| Particulars | 31-Mar-2024 | 31-Mar-2023 | 31-Mar-2022 |
| Net Revenue | 4917.89 | 3,278.65 | 5197.48 |
| Operating Cost | |||
| Cost of Materials Consumed | 2431.9 | 1,815.08 | 1200.34 |
| Purchases of Stock-in-trade | 58.84 | 67.69 | 57.93 |
| Changes in Inventories / Finished Goods | 30.24 | -176.18 | 17.68 |
| Employee Benefit Expense | 125.92 | 94.42 | 247.04 |
| Other Expenses | 1801.3 | 1,079.63 | 3117.74 |
| Total Operating Cost | 4448.2 | 2,880.65 | 4640.73 |
| Operating Profit (EBITDA) | 469.69 | 398.00 | 556.75 |
| Other Income | 36.94 | 36.40 | 797.07 |
| Depreciation and Amortization Expense | 45.9 | 47.10 | 80.36 |
| Profit Before Interest and Taxes | 460.73 | 387.29 | 1273.46 |
| Finance Costs | 141.92 | 147.03 | 337.22 |
| Profit Before Tax and Exceptional Items Before Tax | 318.81 | 240.26 | 936.24 |
| Exceptional Items Before Tax | 0 | 0.01 | -279.26 |
| Profit Before Tax | 318.81 | 240.27 | 656.98 |
| Income Tax | 88.68 | 56.82 | 216.86 |
| Profit for the Period from Continuing Operations | 230.13 | 183.44 | 440.12 |
| Profit from Discontinuing Operations After Tax | -447 | -216.18 | 0 |
| Minority interest and profit from associates and joint ventures | 0 | -7.12 | 0 |
| Profit for the Period | -216.87 | -39.86 | 440.12 |
BALANCE SHEET
| Particular | 31-Mar-2024 | 31-Mar-2023 | 31-Mar-2022 |
| Equity and Liabilities | |||
| Equity | |||
| Share Capital | 24.49 | 24.47 | 12.24 |
| Reserves and Surplus | 1268.49 | 1484.8 | 1686.51 |
| Other Equity | 39.8 | 0 | 0 |
| Total Equity | 1332.78 | 1509.27 | 1698.75 |
| Liabilities | |||
| Non-Current Liabilities | |||
| Long Term Borrowings | 0 | 3554.35 | 1590.03 |
| Net Deferred Tax Liabilities | 11.63 | 102.04 | 54.39 |
| Other Long Term Liabilities | 427.76 | 695.69 | 560.4 |
| Long Term Provisions | 0 | 0 | 7.61 |
| Total Non-current Liabilities | 439.39 | 4352.08 | 2212.43 |
| Current Liabilities | |||
| Short Term Borrowings | 770.53 | 1057.09 | 558.64 |
| Trade Payables | 380.75 | 2097.81 | 1668.82 |
| Other Current Liabilities | 10306.42 | 2019.96 | 2964.58 |
| Short Term Provisions | 0 | 0 | 45.86 |
| Total Current Liabilities | 11457.7 | 5174.86 | 5237.9 |
| Total Equity and Liabilities | 13229.87 | 11036.21 | 9149.08 |
| Assets | |||
| Net Fixed Assets | |||
| Tangible Assets | 438.04 | 344.52 | 394.62 |
| Intangible Assets | 33.48 | 41.89 | 36.25 |
| Total Net Fixed Assets | 471.52 | 386.41 | 430.87 |
| Capital Work-in-progress | 21.89 | 286.05 | 23.08 |
| Other Non current Assets | |||
| Non-current Investments | 0 | 811.85 | 620.77 |
| Net Deferred Tax Assets | 13.27 | 0 | 17.58 |
| Long Term Loans and Advances | 0 | 0 | 92.64 |
| Other Non-current Assets | 387.15 | 4612.61 | 1931.88 |
| Total Other Non-current Assets | 400.42 | 5424.46 | 2662.87 |
| Current Assets | |||
| Current Investments | 0 | 80.5 | 0 |
| Inventories | 468.69 | 659.74 | 220.78 |
| Trade Receivables | 1260.98 | 1599.6 | 1360.43 |
| Cash and Bank Balances | 606.92 | 1437.81 | 1350.06 |
| Short Term Loans and Advances | 0 | 0 | 203.54 |
| Other Current Assets | 9999.45 | 1161.64 | 2897.45 |
| Total Current Assets | 12336.04 | 4939.29 | 6032.26 |
| Total Assets | 13229.87 | 11036.21 | 9149.08 |
RATIO ANALYSIS
| PARTICULARS | 31-Mar-2024 | 31-Mar-2023 | 31-Mar-2022 |
| PROFITABILITY RATIO | |||
| EBITDA Margin (%) | 11% | 13% | 19% |
| Net Margin (%) | 5% | 6% | 7% |
| Return on Equity (%) | 17% | 12% | 26% |
| Return on Asset (%) | 2% | 2% | 5% |
| EFFICIENCY RATIO | |||
| Asset Turnover | 0.38 | 0.30 | 0.66 |
| LIQUIDITY RATIO | |||
| Current Ratio | 1.11 | 1.16 | 1.23 |
| GROWTH RATIO | |||
| Revenue Growth (%) | 51% | -46% | 54% |
SHARE-PRICE JOURNEY (UNLISTED)
The unlisted shares of Sterlite Power (now Sterlite Electric) have seen significant volatility over the past few years, shaped by IPO expectations, corporate actions, and the recent demerger.
- 2020: Traded at ~₹700–800, implying a valuation of ~₹9,600 Cr.
- 2021–early 2022: Strong rally on listing expectations pushed the price to ~₹1,600 by mid-2022, valuing the company at ~₹19,000 Cr.
- Late 2022: Following the filing and subsequent withdrawal of the IPO DRHP (Sept 2022), prices corrected to ~₹800–900. A 1:1 bonus issue (Oct 2022) effectively adjusted the share price down to ~₹400–450.
- 2023–mid 2024: Shares recovered on the back of strong order wins and clarity on the GIC transaction. By mid-2024 (pre-demerger), the unadjusted price reached ~₹800.
- Post-demerger (Oct 2024 onwards): Sterlite Power split into two entities – Sterlite Electric and Sterlite Grid 5 – which began trading separately in the unlisted market. Current market quotes (2025) suggest:
- Sterlite Electric (formerly SPTL): ₹540–550 per share
- Sterlite Grid 5: ₹360–365 per share
For context, the combined post-split value is marginally lower than the pre-demerger ~₹800 levels, reflecting the reallocation of businesses and scope between the two entities.
NOTABLE INVESTMENTS AND FUNDING EVENTS
- GEF/ENAM (Dec 2024): Sterlite Electric raised ₹725 Cr from GEF Capital and ENAM, valuing it at ₹7,250 Cr. Funds will expand cable capacity and new markets.
- GIC JV (Oct 2024): GIC committed $500 M for a 49% stake in Sterlite Grid 5, seeded with four assets (₹6,000 Cr EV). The $1 B platform targets ₹10,000 Cr projects annually.
- Project Financing: Secured ₹1,373 Cr from PFC for Neemrana (May 2024) and ₹2,450 Cr from NaBFID/IIFCL for Mumbai Urja (Jan 2025), lowering costs and freeing capital.
- Rating Upgrade (Apr 2025): CRISIL raised Sterlite Electric to AA–/Stable, citing demerger benefits, equity infusion, and stronger balance sheet.
