STL Networks Limited has announced significant changes in its senior management structure with the appointment of Ms. Prerna Wadhwa as Head-Legal and Senior Management Personnel, effective December 24, 2025. This development comes as the company continues to strengthen its leadership team following the earlier announced resignation of Manish Ranjan from the same position.

Board Approval and Appointment Details

The Board of Directors of STL Networks Limited approved the appointment on December 23, 2025, based on the recommendation of the Nomination and Remuneration Committee. The appointment was disclosed in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

Professional Background and Expertise

Ms. Prerna Wadhwa brings over a decade of experience to her new role. She originally joined STL Networks on June 30, 2022, and has been handling the company's legal functions with a focus on strategic counsel and risk management.

Educational Qualifications

Professional Experience

Prior to joining STL Networks, Wadhwa was associated with several prominent organizations including Bharat Broadband Network Limited, a Government of India undertaking. She has also worked with large conglomerates such as the Avanthe Group and the Amtek Group, as well as multinational consulting firms SCS Global-Japan and M1Xchange.

Key Responsibilities and Contributions

In her current role at STL Networks, Wadhwa has demonstrated expertise in multiple areas:

• Legal Function Management: Providing strategic counsel with emphasis on effective risk management
• High-Stakes Litigation: Proven track record in handling civil, regulatory, and arbitration matters
• Corporate Strategy: Active involvement in strategic fundraising initiatives, corporate and financial restructuring
• Mergers and Acquisitions: Extensive experience in M&A transactions
• Compliance and Governance: Hands-on experience in legal and corporate compliance, board governance, and stakeholder management

Leadership Transition Context

This appointment effectively fills the position that will be vacated by Manish Ranjan, the outgoing Head-Legal, whose resignation was announced earlier with a last working day scheduled for March 17, 2026. The seamless transition demonstrates STL Networks' proactive approach to maintaining continuity in its legal leadership.

Company's Commitment to Governance

According to the company's disclosure, Wadhwa actively supports STL Networks' commitment to ethical business practices and contributes to fostering a culture of integrity, transparency, and robust governance. This aligns with the company's strategic focus as it continues to navigate the competitive telecom infrastructure sector.

The appointment reinforces STL Networks' emphasis on strengthening its senior management team as the company works to improve its financial performance and leverage its strong order book of over INR 65.00 billion as of June 2025.

India Ratings and Research (Ind-Ra) has assigned an 'IND A-'/Stable rating to STL Networks Limited (STLN) proposed non-convertible debentures (NCDs) worth INR 3,000.00 million. The agency has also affirmed the 'IND A-'/Stable/IND A2+' rating for the company's bank loan facilities of INR 25,000.00 million.

Key Rating Drivers

The ratings reflect STLN's robust business profile, supported by its established track record in the telecom industry and end-to-end capabilities in executing complex and mission-critical projects. Ind-Ra expects healthy revenue growth for STLN over 2HFY26-FY27, backed by a strong order book of over INR 65,000.00 million as of end-June 2025, representing a book-to-bill ratio of over 5.5x based on FY25 revenue.

Financial Performance and Outlook

STLN's consolidated revenue declined by about 20% year-on-year to INR 11,800.00 million in FY25, primarily due to the company's selective approach in order acquisition. The EBITDA margin moderated slightly to 6.3% in FY25 from 6.7% in FY24.

Despite the current modest credit metrics, Ind-Ra anticipates gradual improvement in net leverage and interest coverage over the near to medium term. This expectation is driven by projected enhancements in profitability, moderation of the working capital cycle, and the potential release of locked-up funds.

Order Book and Industry Outlook

STLN secured a significant contract worth about INR 22,000.00 million under Bharat Net Phase III during Q1FY26, boosting its outstanding order book to over INR 65,000.00 million as of June 2025. The company is well-positioned to capitalize on India's accelerating digital transformation, with key government initiatives such as BharatNet Phase III, Smart Cities Mission, and Digital India driving large-scale connectivity and infrastructure development.

Challenges and Constraints

The rating is partially constrained by STLN's modest credit metrics, elongated working capital cycle, and significant working capital lock-up in a few projects. The company faces challenges with delays and disputes in some projects, resulting in working capital being tied up. However, management expects a significant portion of the locked-up amount to be cleared by 1HFY27.

Liquidity and Debt Profile

STLN's liquidity position is supported by adequate free cash and equivalents, undrawn working capital limits, and expected positive cash flow from operations over 2HFY26-FY27. The company had a consolidated free cash and equivalent of INR 792.00 million at end-September 2025. STLN has a term debt principal repayment obligation of INR 360.00-370.00 million each in FY26 and FY27, which Ind-Ra expects will be serviced through internal accruals and existing liquidity.

Conclusion

While STLN faces challenges in its working capital cycle and credit metrics, the company's strong order book, strategic position in the growing digital infrastructure sector, and expected improvements in financial performance provide a stable outlook. The successful execution of orders, improvement in profitability, and effective management of working capital will be crucial for maintaining and potentially improving the company's credit rating in the future.