STL Networks encounters poor performance during its initial public offering on the Stock Exchange of Thailand

STL Networks Debuts on Stock Exchange, Aims for Growth

STL Networks Ltd, a digital infrastructure and IT services company, made its stock exchange debut on Thursday at ₹22.90 and ended over 5% lower at ₹21.75. The company, which has previously built data centres for the Indian Navy and other PSUs, is now focusing on scaling its system integration, connectivity, and managed services portfolio across telecom, enterprise, and public sector domains.

The company's transformation began with the demerger and rebranding of Sterlite Tech's Global Services Business as Invenia-STL Networks. Pankaj Mallik, CEO of STL Networks, stated that the company aims to engineer secure, future-ready infrastructure to empower various sectors in a digital-first economy.

STL Networks is expecting significant orders in the coming two quarters, signalling growth in the next 18 to 24 months. The company's margins are expected to improve from the current 6-7% to north of 10-12% going forward. Cash generation is a top priority for STL Networks, with a focus on reducing debt from Maharashtra and Telangana projects and future projects.

In a significant move, STL Networks has secured a contract worth ₹359 crore with PowerGrid Teleservices Ltd for the supply, installation, and maintenance of a pilot data centre in Manesar. The company has also been awarded the Mukhyamantree Surakshit Sushaait Shahar (MSSS) initiative, worth ₹205 crore, in three cities in Bihar. However, specific details about the implementation timeline of the MSSS project in the three cities of Bihar are not available.

In its financial results for the year ending March 31, 2025, STL Networks reported a revenue of ₹1,180 crore, an EBITDA of ₹81 crore, and a strong open order book of over ₹4,249 crore. The biggest project in STL Networks' open order book is the BharatNet III project worth ₹2,631 crore for the Jammu & Kashmir leg, secured in a consortium with Dilip Buildcon Ltd.

Ankit Agarwal, Vice-Chairman & Non-Executive Director at STL Networks, expects the company's revenue to scale from about ₹1,300 crore this year to over ₹2,000 crore in 2 to 3 years time. STL Networks is at a "tipping point" of improving its cash cycle, improving its patent involvement, and growing the business from this point. The company aims to continue its growth trajectory and contribute to India's digital transformation.