STL Networks Q1 FY27: Revenue Falls 13% QoQ

June quarter results at a glance

STL Networks Ltd reported net sales turnover of ₹176.15 crore for the quarter ended June 30, 2026, based on the financial data provided. This was 13.26% lower than ₹203.08 crore in the March 2026 quarter. The company’s total income, including other income, was ₹177.34 crore, compared with ₹204.76 crore in the preceding quarter. The supplied summary also describes the revenue decline as 7.27% year-on-year, while the detailed quarterly table shows June 2025 net sales of ₹189.95 crore. That table implies that the June 2026 sales figure was below the year-earlier level. The quarter is referred to as Q1 FY27 in the company-related updates.

The June-quarter numbers show a business operating at lower revenue than in the prior three reported quarters. Net sales had been ₹335.14 crore in December 2025 and ₹230.79 crore in September 2025 before declining to ₹203.08 crore in March 2026. Other income was ₹1.19 crore in June 2026, down from ₹1.68 crore in March. All revenue figures in this report are presented in ₹ crore for consistent comparison.

Revenue movement across five quarters

The quarterly record indicates considerable movement in STL Networks’ revenue base. June 2026 net sales were ₹176.15 crore, against ₹189.95 crore in June 2025. Total income declined from ₹194.02 crore in the year-earlier quarter to ₹177.34 crore. The difference between net sales and total income reflects other income reported for each period. The company’s March 2026 total income of ₹204.76 crore was also above the June 2026 level.

Costs and operating performance

Total expenses fell to ₹167.87 crore in June 2026 from ₹198.02 crore in March 2026. As a result, operating profit increased to ₹8.28 crore from ₹5.06 crore despite the decline in income. EBITDA was ₹9.47 crore, compared with ₹6.74 crore in the March quarter. It was, however, below EBITDA of ₹25.27 crore reported for December 2025.

Depreciation was ₹1.03 crore in June 2026, substantially lower than ₹27.27 crore in March 2026. EBIT consequently turned positive at ₹8.44 crore after a negative ₹20.53 crore in the prior quarter. The reported figures do not explain the quarter-on-quarter movement in depreciation. The change is relevant because it affected the movement from operating profit to EBIT.

Interest costs remained above operating profit

Interest expense stood at ₹35.69 crore in the June 2026 quarter, up from ₹29.03 crore in March 2026. This was higher than the company’s EBIT of ₹8.44 crore for the period. Consequently, STL Networks reported a loss before tax of ₹27.25 crore. The loss before tax had been ₹49.56 crore in the preceding quarter.

The tax line was negative ₹5.37 crore in June 2026, compared with negative ₹2.83 crore in March. Profit and loss for the year was negative ₹21.88 crore, while reported PAT was also negative ₹21.88 crore. There were no extraordinary items, prior-year adjustments, or other adjustments listed for the June quarter. The narrower loss reflects the reported operating improvement and lower depreciation, although the interest burden remained material.

Consolidated summary and per-share data

A separate consolidated financial summary in the supplied material places June 2026 revenue at ₹177 crore and net loss at ₹22 crore, rounded from the detailed figures. It says revenue declined 13.43% quarter-on-quarter and 8.61% from the same quarter a year earlier. The summary puts earnings per share at negative ₹0.45, compared with negative ₹0.96 in March 2026 and negative ₹0.46 in June 2025.

The rounded summary and detailed statement broadly point to the same direction of change: lower revenue and a narrower loss from the March quarter. The detailed table records reported PAT of negative ₹46.89 crore in March 2026, compared with negative ₹21.88 crore in June. Investors reviewing the results should distinguish between net sales turnover, total income and rounded consolidated revenue figures, as each appears in the supplied material.

FY26 performance provides context

The data also points to a difficult FY26. One update reports full-year revenue of ₹968 crore, down 18% from FY25, and a net loss of ₹99.11 crore. Another FY26 consolidated summary gives revenue of ₹958.96 crore, down 18.71% from ₹1,179.72 crore in FY25, with a loss of ₹99.11 crore versus a ₹31.95 crore loss in FY25. Both disclosures indicate lower annual revenue and a wider annual loss.

The full-year earnings update states that loss per share widened to ₹2.03 in FY26 from ₹0.66 in FY25. The difference between the two FY26 revenue figures is present in the source material and is not reconciled there. What is consistent across the updates is the reported deterioration in the annual loss and decline in revenue. This context explains why the June-quarter reduction in loss is notable, even as revenue remained lower.

Board meeting for September-quarter results

STL Networks announced a board meeting on October 29, 2026, to consider and approve unaudited standalone and consolidated results for the quarter and half-year ended September 30, 2026. The announcement was made under SEBI Listing Regulations. The company also said its trading window would remain closed from October 1, 2026 until 48 hours after the declaration of the unaudited results.

The scheduled board consideration is the next formal event identified in the supplied information. It will cover both quarterly and half-year financial statements. The company had earlier announced that the date of the board meeting would be communicated separately. The October 29 meeting notice subsequently provided that date.

Conflicting reported Q2 figures need verification

The supplied material also contains a separate October 23 item describing STL as having Q2 FY27 revenue of ₹2,529 crore, EBITDA of ₹846 crore, PAT of ₹517 crore and an open order book of ₹35,274 crore. It attributes those figures to strong demand, multi-year agreements, a tariff refund gain and a net debt-free balance sheet. Those amounts differ sharply from the company’s June-quarter financial tables and the FY26 revenue figures provided elsewhere.

The same material simultaneously says STL Networks was due to report Q2 FY27 results on October 29, 2026. Since the source contains both a pre-results board-meeting disclosure and a separate reported Q2 release, the figures should not be combined without confirmation from the company’s filed standalone and consolidated results. The stated optical cable supply agreement was worth ₹960 crore, according to that separate item. No reconciliation between the reported Q2 figures and the other financial data is included.

What the results mean for investors

The confirmed June-quarter data shows that STL Networks’ loss narrowed sequentially while revenue declined. Operating profit and EBITDA improved from the March quarter, but interest expense remained above EBIT and kept the company in a loss. The FY26 disclosures also show the importance of tracking revenue recovery, operating costs and finance costs together rather than focusing only on one metric.

The upcoming September-quarter and half-year results are the relevant scheduled disclosure for updated financial information. They may clarify the company’s reported operating trajectory, balance-sheet position and any material items affecting profit. Until the formal results are reviewed alongside the company’s filings, the inconsistent figures included in the supplied material should be treated separately. The central June-quarter takeaway remains a 13.26% sequential fall in net sales and a reported PAT loss of ₹21.88 crore.