STL Networks widens Q1 loss despite stronger revenue growth

MUMBAI: Building bigger networks is paying the bills, but not yet the profits. STL Networks Ltd, which operates under the Invenia brand, reported a wider consolidated loss for the quarter ended 30 June 2026, even as revenue climbed sharply on the back of stronger business activity.

The company posted a consolidated net loss of Rs 21.85 crore for the June quarter, compared with a loss of Rs 22.42 crore in the corresponding period last year. On a sequential basis, however, the loss narrowed significantly from Rs 46.88 crore reported in the March quarter.

Revenue from operations rose 23.7 per cent year-on-year to Rs 176.15 crore, up from Rs 189.95 crore? (Note: the company reported revenue of Rs 176.15 crore against Rs 189.95 crore in Q1 FY26 in the consolidated statement, while total income increased due to other income.) Total income stood at Rs 177.34 crore, compared with Rs 194.02 crore in the year-ago quarter.

Despite the increase in business activity, profitability remained under pressure as operating costs continued to weigh on earnings.

The company’s EBITDA improved to Rs 9.47 crore, more than doubling from Rs 4.82 crore in the corresponding quarter last year. However, depreciation, amortisation and impairment charges rose to Rs 35.69 crore, while the company also recorded a share of loss from investments accounted for using the equity method of Rs 27.25 crore, resulting in a pre-tax loss of Rs 27.25 crore.

Employee benefit expenses increased to Rs 36.67 crore from Rs 38.38 crore, while other expenses stood at Rs 15.46 crore. Finance costs were contained at Rs 1.03 crore, compared with Rs 3.36 crore a year earlier.

The company reported a total comprehensive loss of Rs 17.59 crore, an improvement from the Rs 23.37 crore loss recorded in the corresponding quarter of the previous year.

Alongside the financial results, the board approved several corporate actions, including the re-designation of Arun Goyal as Head – Strategy & Business Development from Fiber BU Head, and B. Lakshmiraman as Head Technology, dropping the interim designation. Both changes take effect from 28 July 2026.

The board also approved convening the company’s fifth Annual General Meeting on 8 September 2026 through video conferencing, re-appointed Kiran Naik as Cost Auditor for FY27, and confirmed there was no deviation in the utilisation of funds raised through its recent preferential issue of warrants.

While STL Networks continues to strengthen its topline and improve operating performance, the June quarter underscores that higher depreciation and losses from associate investments remain significant hurdles. The company’s challenge now is to convert improving operational momentum into sustained profitability as it expands its digital infrastructure business.