STL Networks LimitedQ2 FY27 Results & Financial Update
STL Networks Limited: Q2 FY27 consolidated results and company financials – revenue ₹270.11 Cr, PAT ₹-16.13 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore STL Networks Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
STL Networks Limited reported consolidated revenue from operations of INR 270.11 crore for the second quarter ended September 30, 2026, accompanied by total consolidated income of INR 274.21 crore.
The consolidated bottom line remained negative during the quarter, with a loss after tax (PAT) of INR 16.13 crore, reflecting continuing cost pressures and elevated financing charges across project operations.
Consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at INR 16.06 crore, yielding an EBITDA margin of 5.94% for the quarter.
Finance costs remained a substantial burden on profitability, amounting to INR 31.84 crore for the quarter, largely offsetting operating earnings before tax and share of results.
The consolidated results include contributions from international subsidiaries, among which two foreign entities accounted for total revenues of INR 16.67 crore and net losses after tax of INR 15.09 crore for the quarter.
The statutory review report by the company's auditors highlighted unmodified review conclusions on both the standalone and consolidated financial results for the quarter.
01 · Business model
What does STL Networks do?
STL Networks Limited operates primarily within the global services business, delivering comprehensive solutions encompassing fiber network services, system integration, IT infrastructure management, network operations center (NOC) services, and security operations center (SOC) solutions.
The company executes complex telecom infrastructure projects and offers digital network integration services to enterprise and carrier clients across multiple geographies through its consolidated operating subsidiaries.
The consolidated corporate group structure comprises key entities including Sterlite Technologies UK Ventures Limited, STL UK Holdco Limited, and step-down subsidiary Clearcomm Group Limited, supporting international service delivery.
Subsequent to the quarter end, the company established a dedicated subsidiary, STL Networks DC Limited, on October 10, 2026, to expand operations into data center infrastructure, telecommunication connectivity solutions, and related services.
02 · Historical context
What shaped the business before this quarter
Sterlite Conduspar Industrial Ltda ceased to be a jointly controlled entity from April 16, 2025, as it entered the process of liquidation.
In the preceding fiscal year ended March 31, 2026, the company recognized a statutory past service cost of INR 5.12 crore under exceptional items following the notification of four new Labour Codes by the Government of India.
During the year ended March 31, 2026, the group recognized an impairment charge of INR 24.96 crore relating to customer relationship intangible assets based on management's recoverable value assessments under Ind AS 36.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q2 FY27 |
|---|---|
| Revenue from operations | ₹270.11 Cr |
| Total income | ₹274.21 Cr |
| Profit before tax | ₹-16.75 Cr |
| Profit after tax | ₹-16.13 Cr |
| EPS | ₹-0.33 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Revenue from operations of INR 270.11 crore was primarily driven by execution across fiber network services, system integration, and IT infrastructure management contracts.
Total income of INR 274.21 crore was augmented by INR 4.10 crore of other income recorded during the quarter.
International subsidiary operations contributed INR 16.67 crore to consolidated revenues during the quarter ended September 30, 2026.
What drove margins
Cost of components and bought-outs consumed stood at INR 156.40 crore, while other direct costs accounted for INR 47.82 crore during the quarter.
Employee benefits expense was reported at INR 37.59 crore, and other expenses stood at INR 16.34 crore, bringing total consolidated expenditure to INR 258.15 crore.
High finance costs of INR 31.84 crore weighed heavily on pre-tax earnings, resulting in a loss before tax and share of net loss of investments of INR 16.75 crore.
05 · Demand, customers & order book
Where demand is coming from
As of September 30, 2026, contract assets and trade receivables include INR 155.74 crore and INR 151.41 crore respectively, representing receivables from customers on closed, substantially closed, or suspended projects that are currently under arbitration. Management considers these balances fully recoverable.
An aggregate amount of INR 710.24 crore in contract assets and trade receivables pertains to slow-moving projects, dependent on regulatory and customer-secured approvals. Management remains confident of full recoverability based on contractual terms and legal evaluations.
06 · Strategy & new businesses
How the company is trying to change its growth mix
During the half year ended September 30, 2026, the company allotted 45,000,000 convertible share warrants to promoter shareholder Twinstar Overseas Limited at INR 24 each, receiving INR 27 crore as 25% upfront subscription monies.
07 · Reported developments
What changed operationally
Statutory auditors issued an unmodified review conclusion on both the standalone and consolidated financial results for the quarter ended September 30, 2026.
08 · Pressure points & risks
What is not going smoothly
The company reported a consolidated net loss after tax of INR 16.12 crore for the quarter ended September 30, 2026.
Significant balances in trade receivables and contract assets remain tied up in slow-moving projects and disputed arbitration matters, totaling hundreds of crores.
09 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
For the half year ended September 30, 2026, the consolidated entity generated positive net cash inflow from operating activities of INR 197.15 crore, aided by working capital movements.
Net cash used in investing activities stood at INR 29.85 crore for the half year, while net cash used in financing activities was INR 194.04 crore, driven by borrowings repayments and interest payments.
Capital allocation & funding
The parent company maintained secured non-convertible debentures aggregating INR 150 crore (10.25% NCDs) and INR 100 crore (10.35% NCDs), maintaining the required minimum security cover of 1.20x.
India Ratings and Research Private Limited rated the company's NCD issue as 'IND A-/Stable' as of November 17, 2025.
The consolidated debt-equity ratio stood at 1.03 as of September 30, 2026.
10 · Beyond the numbers
What changed beyond the numbers
Reported update
Management Transition
The company appointed Ms. Anshika Gupta as Interim Company Secretary and Compliance Officer effective October 30, 2026.
11 · Previous-quarter changes
What changed since the previous quarter
Consolidated revenue from operations increased from INR 176.15 crore in Q1 FY27 to INR 270.11 crore in Q2 FY27.
Consolidated net loss after tax narrowed from INR 21.88 crore in Q1 FY27 to INR 16.12 crore in Q2 FY27.
12 · Key Q&A
The quarter, answered directly
What does STL Networks do?
STL Networks Limited operates primarily within the global services business, delivering comprehensive solutions encompassing fiber network services, system integration, IT infrastructure management, network operations center (NOC) services, and security operations center (SOC) solutions.
What is the clearest takeaway from Q2 FY27?
STL Networks Limited reported consolidated revenue from operations of INR 270.11 crore for the second quarter ended September 30, 2026, accompanied by total consolidated income of INR 274.21 crore.
What drove revenue or demand?
Revenue from operations of INR 270.11 crore was primarily driven by execution across fiber network services, system integration, and IT infrastructure management contracts.
What mattered most for margins or profitability?
Cost of components and bought-outs consumed stood at INR 156.40 crore, while other direct costs accounted for INR 47.82 crore during the quarter.
What changed operationally beyond the headline numbers?
During the half year ended September 30, 2026, the company allotted 45,000,000 convertible share warrants to promoter shareholder Twinstar Overseas Limited at INR 24 each, receiving INR 27 crore as 25% upfront subscription monies.
What are the main pressure points disclosed for the quarter?
The company reported a consolidated net loss after tax of INR 16.12 crore for the quarter ended September 30, 2026.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Arbitration Outcomes: Progress on recovery and arbitration proceedings regarding disputed project receivables of INR 155.74 crore in contract assets and INR 151.41 crore in trade receivables.
- 02
Data Center Expansion: Operational developments and capital deployment within the newly incorporated data center subsidiary, STL Networks DC Limited.
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