STL Global Q1 Results: Net loss widens 14x YoY to ₹124.6 lakh

STL Global reported a significant widening of losses in its first quarter of FY27, with the net loss after tax expanding to ₹124.59 lakh for the quarter ended June 30, 2026. This compares to a net loss of ₹9.51 lakh in the corresponding quarter of the previous fiscal year and ₹70.41 lakh in the immediately preceding quarter (Q4FY26). The deterioration was driven by a contraction in revenue alongside persistent operational costs that exceeded income.

Revenue from operations fell 19.1% year-on-year to ₹2,031.09 lakh, down from ₹2,511.73 lakh in Q1FY26. On a sequential basis, revenue also declined slightly from ₹2,061.69 lakh in Q4FY26. Total expenses for the quarter stood at ₹2,159.59 lakh, resulting in an operating loss before exceptional items and tax of ₹124.59 lakh.

Financial Performance Breakdown

Metric	Q1FY27 (₹ in lakhs)	Q4FY26 (₹ in lakhs)	Q1FY26 (₹ in lakhs)
Revenue from Operations	2,031.09	2,061.69	2,511.73
Other Income	3.91	66.64	5.65
Total Expenses	2,159.59	2,193.09	2,525.52
Net Loss After Tax	(124.59)	(70.41)	(9.51)

The company’s other income dropped sharply to ₹3.91 lakh from ₹66.64 lakh in the previous quarter, contributing to the lower total revenue of ₹2,035.00 lakh. Cost of materials consumed remained the largest expense head at ₹1,459.79 lakh, while employee benefits expenses were recorded at ₹246.54 lakh. Finance costs decreased marginally to ₹14.56 lakh from ₹16.27 lakh in Q4FY26.

What the Numbers Show

The widening loss is primarily attributable to the divergence between revenue contraction and expense rigidity. While revenue from operations declined nearly 20% year-on-year, total expenses fell by a smaller margin of approximately 14.5% to ₹2,159.59 lakh. This mismatch indicates that fixed cost components or slower reduction in variable costs relative to sales volume are pressuring margins further. Additionally, the sharp drop in other income from ₹66.64 lakh to ₹3.91 lakh sequentially removed a buffer that had previously helped mitigate operational losses in Q4FY26.

Corporate Actions

In its meeting held on August 13, 2026, the Board of Directors approved the unaudited financial results for the quarter ended June 30, 2026, along with the limited review report from statutory auditors M.M. Goyal & Co. The Board also approved the Director’s Report on Annual Accounts for FY26.

Key corporate governance updates include:

The 29th Annual General Meeting (AGM) will be held on September 30, 2026, at 11:00 am via video conference/other audio-visual means.
The cut-off date for e-voting is set as September 23, 2026.
The register of members and share transfer books will remain closed from September 24, 2026, to September 30, 2026.
Mr. Vijay Bahadur of M/s Vijay Mourya & Associates has been appointed as the scrutinizer for the e-voting process.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.72%	-0.31%	-2.70%	-20.42%	-29.73%	-30.18%

STL Global reported a net loss of ₹21.55 lakh for the financial year ended March 31, 2026, narrowing from a net loss of ₹65.70 lakh in the previous year, as revenue from operations declined. Revenue for FY26 stood at ₹10,150.75 lakh, a decrease from ₹11,019.55 lakh in FY25, primarily due to lower income from its textile business segment. For the quarter ended March 31, 2026, the company recorded a net loss of ₹70.44 lakh on revenue of ₹2,061.69 lakh.

The board of directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 29, 2026. The results were reviewed by the audit committee and prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under the Companies Act, 2013. The statutory auditors, M.M. Goyal & Co., issued an audit report with an unmodified opinion for the period.

Total expenses for FY26 amounted to ₹10,238.18 lakh, slightly lower than the ₹11,129.30 lakh recorded in the previous year. The company managed to reduce its finance costs to ₹74.63 lakh in FY26 from ₹102.44 lakh in FY25. However, employee benefit expenses increased to ₹1,030.68 lakh from ₹894.04 lakh in the same period.

The balance sheet as of March 31, 2026, showed total assets of ₹5,480.83 lakh, a decrease from ₹6,003.31 lakh in the prior year. Total equity stood at ₹2,601.88 lakh, while borrowings, classified under non-current liabilities, were reduced to ₹1,257.30 lakh from ₹1,482.30 lakh. Trade payables to micro and small enterprises decreased significantly to ₹61.54 lakh from ₹125.85 lakh.

Cash flow from operating activities improved to ₹211.87 lakh in FY26 compared to ₹546.96 lakh in the previous year. The company generated ₹96.83 lakh from investing activities, largely due to proceeds from the sale of property amounting to ₹41.94 lakh. Cash used in financing activities was ₹299.63 lakh, driven by a movement in long-term borrowings. Cash and cash equivalents at the end of the year increased to ₹30.60 lakh from ₹21.53 lakh at the beginning of the year.