STL Networks Ltd

Order details

• Awarding entity: RailTel Corporation of India Limited.
• Scope: Cloud infrastructure design, supply, installation, testing, and deployment.
• Contract value: 249.8 crore, inclusive of taxes.
• Awarding entity is domestic.
• Execution period: per bid reference dated 25.06.2026.
• Terms per bid reference: RAILTEL/TENDER/OT/CO/ITP/2026-27/DC-DR-Infra/018.
• Promoter/group interest: No promoter group interest.
• Related party: No.

STL Networks Limited trading window closed from October 1, 2026, till the end of Forty Eight (48) hours after the declaration of Un-Audited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2026.

Instruments/Facilities Rated

• Bank loan facilities rated total Rs 250 crore with IVR A-/Stable.

Rating Agency

• Infomerics Valuation and Rating Limited (Infomerics).

Rationale

• Established operating track record and promoter linkages.
• Order book ~Rs 5,000 crore as of June 30, 2026.
• End-to-end capabilities across telecom infrastructure, SI, managed services, O&M.
• Weaknesses: declining income, net losses, weak debt protection metrics.
• Receivables and working-capital risk; liquidity reliant on inflows.

Outlook

• Stable.

Rating Sensitivities

• Upward: sustained revenue/EBITDA growth and strong interest coverage.
• Downward: continued revenue/profit decline or liquidity stress.

Financial Highlights

• FY26 operating income Rs 958.96 crore; FY25 Rs 1,179.72 crore.
• FY26 net loss Rs 99.11 crore; EBITDA Rs 53.75 crore.
• Total debt Rs 934.46 crore; interest coverage 0.46x.
• Executable order book ~Rs 5,000 crore; 86% from government/PSUs.
• Liquidity adequate; cash & bank balances Rs 84.74 crore as on 31 Mar 2026.

WOS incorporation approval

• Committee approved the WOS incorporation on Sept 15, 2026.
• WOS to be STL Networks DC Limited, 100% owned by STL Networks Limited.
• Paid-up capital Rs 1,00,000 comprising 50,000 equity shares of Rs 2 each.
• Cash consideration will be paid for subscription to the WOS.
• WOS will focus on data centre and connectivity solutions.
• WOS to obtain licenses and approvals from regulators as needed.
• Incorporation subject to ROC approval under the Companies Act, 2013.
• Entity to exist as a wholly owned subsidiary with 100% control.

ESOP allotment

• Approval granted for allotment of 1,63,264 equity shares under SP-ESOS 2025.
• Face value per share ₹2; exercise price ₹2 per share.
• Total shares issued: 1,63,264; money realized ₹3,26,528.
• Issue date: 15 September 2026; ISIN INE1VXE01018.
• Post-issue total issued shares: 48,82,71,779; post-issue share capital ₹97,65,43,558.

Scheme and basis

• Scheme aligns SP-ESOS 2025 with Scheme of Arrangement between Sterlite Technologies (Demerged) and STL Networks.

Price movement clarification

• Company states no unpublished price-sensitive information; movement due to market conditions; will disclose as required under Reg 30.

WOS incorporation approval

• Meeting of Authorisation and Allotment Committee held on 11 September 2026 approved WOS incorporation.
• WOS to establish, acquire, own, operate and market data centre and connectivity solutions.
• WOS to be a company limited by shares, 100% held by STL Networks.
• Cash consideration; STL to subscribe to 100% of initial paid-up share capital.
• Face value of INR 2 per share.
• ROC approval under Companies Act, 2013 and regulatory clearances required.
• Proposed business: digital infrastructure and telecom data centre services.
• WOS will obtain requisite licences and authorisations from DoT and regulators.