Interest costs pushed STLNETWORK into a Rs 21.88 cr loss
Operating profit of Rs 8.28 cr was not enough to absorb Rs 35.69 cr of interest, while a Rs 5.37 cr tax credit softened the reported loss.
Filed 28 Jul 2026, 13:00 IST · STLNETWORK (STLNETWORK)
Key takeaways
- Interest of Rs 35.69 cr outweighed operating profit of Rs 8.28 cr, resulting in a consolidated pre-tax loss of Rs 27.25 cr.
- A tax credit of Rs 5.37 cr narrowed the consolidated net loss to Rs 21.88 cr.
- The 4.7% operating margin provided limited cover against finance costs on revenue of Rs 176.15 cr.
Finance costs erased operating profit
STLNETWORK remained operationally profitable on a consolidated basis, but interest of Rs 35.69 cr was more than four times operating profit of Rs 8.28 cr. Other income of Rs 1.19 cr was not enough to offset that finance burden, leaving profit before tax at a loss of Rs 27.25 cr.
Tax credit reduced the reported loss
The negative tax charge of Rs 5.37 cr indicates a tax benefit in the quarter rather than an additional cash burden. That benefit reduced the consolidated net loss to Rs 21.88 cr, but did not change the underlying gap between operating profit and interest expense.
Operating margin offered little buffer
Revenue of Rs 176.15 cr translated into a 4.7% operating margin. With interest at Rs 35.69 cr, the quarter shows that operating profitability was not sufficient to absorb financing costs.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹176 cr |
| Other income | ₹1 cr |
| Expenses | ₹168 cr |
| Operating profit | ₹8 cr |
| Operating margin (%) | 4.70% |
| Interest | ₹36 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹-27 cr |
| Tax | ₹-5 cr |
| Net profit | ₹-22 cr |
| EPS (₹) | ₹-0.45 |
What to watch
- Whether operating profit can cover interest expense of Rs 35.69 cr.
- Whether operating margin moves up from 4.7%.
- Whether the Rs 5.37 cr tax credit recurs in the next quarter.