STL Networks Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

STL Networks Ltd trades at ₹25.8, in a confirmed uptrend and 15 weeks into that stage. That is +5.5% against its own 200-day average. It sits at 67% of a 52-week range of ₹17 to ₹30. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (10 weeks and counting).

Today the stock is in a confirmed uptrend — week 15 of stage 2, confirmed. At ₹25.8 it trades +5.5% versus its 200-day average and sits at 67% of its 52-week range (₹17–₹30).

Against the market, two honest reads. Cumulative: over the last 11 months the stock moved +23% while the NIFTY 500 moved +2% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (10 weeks and counting; last ahead the week of 2026-06-19) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

P/E does not price STL Networks Ltd — earnings are negative, so there is no multiple to rank against its own history. The revenue and margin lines below are where a turn, when it comes, would show first. On sales the market values STL Networks Ltd at 1.3× its FY26 revenue of ₹959 Cr.

With earnings negative, P/E does not price — there is no multiple to rank against its own history. The revenue and margin lines below are where the turn, when it comes, will show first.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −100.1% against a +23.1% price move — the price outran earnings, pushing the multiple UP its own range.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

STL Networks Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 5 quarters across 0 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

31.7/100 — rank 2 of 2 in Telecommunications - Service Provider · 49% evidence confidence · provisional, ranked below fully-evidenced peers

STL Networks Ltd scores 31.7 out of 100 against the 2 companies it is compared with in Telecommunications - Service Provider, ranking 2. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 11.1 + 0.6 + 10 + 10 = 31.7. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

STL Networks Ltd reported ₹176 Cr of revenue in the Jun 26 quarter, −7.4% year on year. Over 2 years it has compounded at −19.4% a year. The last full year, FY26, came in at ₹959 Cr. The last four reported quarters add to ₹945 Cr.

FY26 revenue came in at ₹959 Cr (−18.7% on the year), capping 2 years at −19.4% compound. The latest quarter (Jun 26) printed ₹176 Cr, −7.4% year on year.

Pace check: the last four quarters averaged −3.5% growth against the decade's −19.4% — the current year is running faster than its own long-run rate.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

STL Networks Ltd's operating margin is 4.7% in the Jun 26 quarter, +2.5 percentage points against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 4.0% to 7.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 4.7%, +2.5 pp against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 4.0%–7.0%.

Why the margin moved: operating margin went +2.5 pp year on year while gross margin went −8.1 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

STL Networks Ltd posted a net loss of ₹22.0 Cr in the Jun 26 quarter. The full FY26 year was a loss of ₹99.0 Cr. That loss is 12.5% of the quarter's revenue. The same quarter a year earlier lost ₹22.0 Cr. 7 of the last 9 reported quarters were loss-making.

Jun 26 profit was ₹−22.0 Cr, null year on year. On the full year, FY26 printed ₹−99.0 Cr (null).

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

STL Networks Ltd's cash-flow history is too thin to judge how much reported profit converts into cash. In FY26 that was ₹−111 Cr of operating cash against ₹−99.0 Cr of profit. After ₹6.0 Cr of capital spending, ₹−117 Cr was left as free cash. Cash resolution here is annual, because quarterly cash statements are not published.

FY26: operating cash of ₹−111 Cr against reported profit of ₹−99.0 Cr, leaving free cash of ₹−117 Cr after ₹6.0 Cr of capital spending.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

STL Networks Ltd's cash conversion cycle runs −504 days in FY26, up from −823 days in FY24. Capital spending ran ₹11.0 Cr over the last 2 years. At FY26 sales of ₹959 Cr each day of that cycle holds about ₹2.6 Cr, so roughly ₹−1,324 Cr sits inside the business at any moment.

FY26: debtors at 377 days, inventory at 86 days — roughly 2.8 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −504 days, looser than FY24's −823.

The full loop: cash goes out to suppliers and production on day 0; stock waits 86 days to sell; customers pay about 377 days after that; and suppliers themselves are paid at 968 days — netting out to the −504-day cycle.

In money terms: at FY26 sales of ₹959 Cr, each day of the cycle holds about ₹2.6 Cr — so the −504-day loop keeps roughly ₹−1,324 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹11.0 Cr over the last 2 fiscal years against ₹52.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

STL Networks Ltd earns a ROCE of 1% in FY26. Return on invested capital clears the cost of that capital by −11.6 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is −10.3% net margin on 0.34× asset turns.

FY26 ROCE is 1%.

🚨 Why the return is what it is — the wiring (FY26): −10.3% net margin × 0.34× asset turns × 3.56× balance-sheet leverage ≈ −12.5% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 0.4% − 12.0% = a −11.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

STL Networks Ltd carries total debt of ₹934 Cr against shareholder equity of ₹800 Cr as of Mar 26, a debt-to-equity of 1.17. On the annual view that ratio went from 0.92 in FY25 to 1.17 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹934 Cr against shareholder equity of ₹800 Cr — a debt-to-equity of 1.17. On the annual view, debt-to-equity went from 0.92 (FY25) to 1.17 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions cut 8.3 points of STL Networks Ltd over 4 quarters, the biggest move on the register. That takes domestic institutions to 3.3% of the company. Foreign institutions moved −6.1 points over the same window, to 1.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −8.3 points over 4 quarters to 3.3%; Foreign institutions: −6.1 points over 4 quarters to 1.1%; Promoters: +0.0 points over 4 quarters to 44.1%.

🚨 Why the register moved: domestic institutions drove it (−8.3 points), alongside foreign institutions (−6.1 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

STL Networks Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions