STL Networks Limited (STLN), a prominent player in the telecom infrastructure sector, has announced the resignation of Manish Ranjan, the company's Head-Legal and designated Senior Management Personnel. The resignation, citing personal reasons, was tendered on November 17, 2025, with Ranjan's last working day scheduled for March 17, 2026.

Key Details of the Resignation

This development was disclosed by STLN in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The company made the announcement through a formal communication to both the BSE Limited and the National Stock Exchange of India Limited.

Impact on Company Structure

The departure of Ranjan, who held a key position in STLN's senior management, may have implications for the company's legal operations and strategic decision-making processes. As Head-Legal, Ranjan likely played a crucial role in managing legal affairs, compliance, and risk management for the organization.

Company Background and Recent Performance

STL Networks Limited, which represents the Global Services Business of Sterlite Technologies Limited following a demerger effective March 31, 2025, offers comprehensive solutions in fibre network services, system integration, IT infrastructure management, and data centre network setup.

According to recent financial data:

The company has faced challenges in its financial performance, with a decline in revenue and EBITDA in FY25 compared to the previous year. However, STLN maintains a strong order book of over INR65 billion as of June 2025, providing revenue visibility with a book-to-bill ratio exceeding 5.5x based on FY25 revenue.

Future Outlook

While the resignation of a senior executive can pose challenges, STLN's robust order book and strategic focus on increasing revenue from technology and annuity-led services may help mitigate potential impacts. The company's ability to navigate this transition in its legal leadership, while maintaining its growth trajectory and improving its financial metrics, will be crucial in the coming months.

Investors and stakeholders will likely be watching closely to see how STLN manages this change in its senior management and whether it affects the company's ongoing projects and strategic initiatives in the competitive telecom infrastructure sector.

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.