Company has been assigned Credit Rating by Infomerics Valuation and Rating Limited

September 25, 2026 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phirozee Jeejeebhoy Towers, Plot No. C-1, G Block, Dalal Street, Bandra Kurla Complex, Bandra (East) Mumbai - 400 001. Mumbai - 400 051. Scrip ID - STLNETWORK Scrip Code– 544395, 977344 and 977517 Subject: Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Credit Rating assigned by Infomerics Valuation and Rating Limited Dear Sir/ Madam, Pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that Infomerics Valuation and Rating Limited (“Infomerics”), vide its Press Release dated September 25, 2026, has assigned the following credit rating to the bank loan facilities of STL Networks Limited: Particulars Details Type of rating Long term Total bank loan facilities rated INR 250 Crores Rating Assigned IVR A-/Stable The Press Release issued by Infomerics dated September 25, 2026 is enclosed herewith. The same will also be available on the Company’s website at https://inveniatech.com/. Kindly take this on your record. Thanking You, For STL Networks Limited Gopal Rastogi Chief Financial Officer Press Release STL Networks Limited September 25, 2026 Rating Action Total Bank Loan Facilities Rs. 250.00 Crore Regulator^ Rated Long Term Rating IVR A-/Stable RBI (Rating Assigned) ^Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. Refer Annexures for details of facilities/instruments, facility wise lender details, and detailed explanation of covenants. Note: None of the Directors on Infomerics Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. Rationale The rating assigned to the bank facilities of STL Networks Limited (STLNL) derives strength from the company’s established execution track record, its association with the stronger promoter group, reputed institutional clientele and sizeable executable order book, which provides medium-term revenue visibility. The rating also considers the company’s end-to-end capabilities across telecom infrastructure, system integration, managed services and operations and maintenance. The rating strengths are, however, constrained by the sustained decline in operating income, weak profitability, stretched receivables, negative operating cash flows and weak debt protection metrics. Total operating income declined to Rs.958.96 crore in FY26 (refers to the period from April 1, 2025 to March 31, 2026) from Rs. 1179.72 crore in FY25 (refers to the period from April 1, 2024 to March 31, 2025) in the backdrop of STLNL’s evolving business profile. The company reported a net loss of Rs.99.11 crore in FY26. The rating also factors in the company’s dependence on timely monetization of receivables including contract assets, recovery of legacy receivables and proceeds from warrant conversion which would further support STLNL’s liquidity. Timely realization of these inflows will remain amongst the key near-term monitorable until the changing business profile translates into sustained improvement in cash-flow generation. Outlook: Stable The Stable Outlook reflects expectations that the company will continue to benefit from its sizeable order book, increasing contribution from higher-margin system integration and O&M segments, established customer relationships and absence of significant debt-funded capex plans. Page | 1 www.infomerics.com Press Release Analytical Approach Approach Comments Consolidation/ Consolidation Standalone For arriving at ratings IVR has considered the consolidated financials of STL Networks Limited and its subsidiaries/joint venture, as listed in Annexure 4. Parent/ Group Support Not Applicable List of companies considered for consolidation/combined analysis is given at Annexure 4. Key Rating Drivers with Detailed Description Strengths Established operating track record and promoter linkages STL Networks Limited emerged following the demerger of the Global Services Business of Sterlite Technologies Limited and operates under the "Invenia" brand. The company benefits from extensive experience in telecom and digital infrastructure execution, including deployment of more than 135,000 km of optical fibre networks and long-standing customer relationships developed over several years. Healthy order book providing revenue visibility The company had an executable order book of approximately ~Rs.5,000 crore as on June 30, 2026, translating into an order book to revenue ratio of 5.22x based on FY26 operating income, thus providing medium term revenue visibility. Further, ~86% of the executable order book is derived from central and state government entities and PSUs, thereby mitigating counterparty risk to an extent. Diversified institutional clientele The company serves reputed telecom operators, government departments and PSU entities including Airtel, RailTel, Power Grid Corporation of India Limited (PGCIL), BSNL, BharatNet and various state government digital infrastructure projects. Several customers possess strong credit profiles, providing comfort regarding eventual collectability of receivables. Favourable industry growth prospects Demand prospects remain supported by BharatNet expansion, 5G rollout, fibreisation, smart city initiatives, enterprise digitisation, cloud adoption and increasing data-centre investments. These structural drivers are expected to support medium-term growth opportunities for telecom infrastructure and digital network service providers. Page | 2 www.infomerics.com Press Release Weaknesses Declining scale of operations and losses The company's operating performance has weakened over the years. Consolidated total operating income declined from Rs. 1172.79 crore in FY25 to Rs.958.96 crore in FY26. The company reported losses of Rs.31.95 crore in FY25 and Rs.99.11 crore in FY26. The higher losses in FY26 were due to lower operating scale, coupled with high operating leverage and finance cost. Weak debt protection metrics The financial risk profile remains weak. Total debt increased to Rs.934.46 crore as on March 31, 2026 from Rs.832.46 crore as on March 31, 2025. The company raised NCDs of Rs. 250 crore during FY26, diversifying its debt profile but increasing interest costs given the longer tenure instrument(s) compared to earlier WCDLs. Consequently, the interest coverage deteriorated to 0.46x in FY26 from 0.83x in FY25, while Total Debt/EBITDA remained elevated in FY26. Reliance on working-capital release for timely debt servicing shall remain a key monitorable. Elongated working capital cycle and dependence on contingent cash inflows The company’s working capital cycle remains elongated, marked by an increase in the average collection period to 325 days in FY26 from 248 days in FY25. Receivables stood sizeable at Rs. 990.62 crore as on March 31, 2026, with a notable portion outstanding for more than one year, resulting in negative cash flow from operations of Rs. 175.76 crore in FY25 and Rs. 111.43 crore in FY26. Consequently, the company’s projected debt servicing is expected to be met from realization of receivables (incl. retention money) and unbilled revenue, recovery of legacy receivables, and proceeds from conversion of promoter warrants which remains amongst the key monitorable. Order book concentration and slow progress in key projects The company’s executable order book remains concentrated towards telecom infrastructure projects, accounting for around 86.31% of the executable order book. While the order book of around Rs. 5,003 crore as on June 30, 2026 provides sizeable revenue visibility, a significant portion is [Showing first 8,000 characters — download PDF for full document]