💰 Financial Performance

Revenue Growth by Segment

Dividend and interest income are the primary revenue drivers; standalone profit before tax grew 23.07% YoY to INR 9.55 Cr for the half-year ended September 30, 2025.

Geographic Revenue Split

100% of revenue is derived from India-based investments; specific regional split within India is not disclosed.

Profitability Margins

Operating profit before working capital changes was INR 9.37 Cr for H1 FY26, representing a 20.28% increase from INR 7.79 Cr in the previous year, driven by higher dividend yields from investee companies.

EBITDA Margin

Not applicable for a Core Investment Company; however, operating profit grew 20.28% YoY, reflecting high administrative efficiency with only 3 employees.

Capital Expenditure

Deployed INR 33.6 Cr in October 2025 for the acquisition of 12,0,000 equity shares of PCBL Chemical Limited at INR 280 per share.

Credit Rating & Borrowing

Not disclosed in available documents; the company primarily operates as a debt-free Core Investment Company.

⚙️ Operational Drivers

Raw Materials

Not applicable as STEL is a Core Investment Company (CIC) and does not engage in manufacturing.

Import Sources

Not applicable.

Key Suppliers

Not applicable.

Capacity Expansion

Not applicable for investment activities; however, the company acquired 12,00,000 shares of PCBL Chemical Limited to expand its sector-specific exposure.

Raw Material Costs

Not applicable.

Manufacturing Efficiency

Administrative efficiency is maintained by a lean team of 3 employees managing a total asset base of INR 2,032.79 Cr.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

20.28%

Growth Strategy

STEL plans to achieve growth by focusing on companies with high-quality governance and strong balance sheets, specifically in sectors like Power and Carbon Black. The recent INR 33.6 Cr investment in PCBL Chemical Limited demonstrates a commitment to expanding its footprint in the chemical manufacturing sector to drive future dividend income and capital gains.

Products & Services

Investment holding services, dividend income, and interest income from bank deposits.

Brand Portfolio

STEL Holdings Limited, Doon Dooars Plantations Ltd (Subsidiary).

New Products/Services

Small capital allocations to new-age companies whose earnings are expected to fructify at a later stage of development.

Market Expansion

Focus on the Indian market, leveraging the revival of stalled infrastructure projects and stable central government policies to enhance investee company performance.

Strategic Alliances

Maintains promoter group status in various investee companies; specific third-party joint venture partners are not named.

🌍 External Factors

Industry Trends

The Indian financial sector is experiencing a surge in equity-based financing and IPOs (6x growth FY13-FY24), which provides a favorable exit and valuation environment for STEL's listed equity holdings.

Competitive Landscape

Operates within the Indian financial sector alongside other holding companies and NBFCs competing for capital allocation opportunities.

Competitive Moat

STEL's moat is its long-term strategic position as a promoter group entity in several key industrial companies, providing a stable and durable advantage in accessing high-quality investment opportunities not available to general market participants.

Macro Economic Sensitivity

Highly sensitive to Indian capital market fluctuations; the portfolio value increased 20.28% YoY to INR 1,884.20 Cr in line with positive domestic economic sentiment.

Consumer Behavior

Rising consumer debt and unsecured lending in the financial sector (as per Economic Survey 2024-25) may impact the performance of financial service investee companies.

Geopolitical Risks

Global macro-economic conditions are cited as factors that could affect the timing and valuation of long-term investment realizations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Indian tax laws and RBI regulations for Core Investment Companies; changes in these could impact the net profitability of dividend income and the efficiency of capital reallocation.

Environmental Compliance

ESG related risks are monitored as part of the risk management framework; specific compliance costs are not disclosed.

Taxation Policy Impact

The company faces a deferred tax liability of INR 150.72 Cr as of September 30, 2025, which increased by 12.42% YoY, reflecting the growing valuation of its underlying investments.

Legal Contingencies

Not disclosed in available documents; the company reports compliance with all listing and legal requirements relating to financial statements.

⚠️ Risk Analysis

Key Uncertainties

Market risk and sectoral downturns in Power or Carbon Black could impact the INR 1,884.20 Cr portfolio value, which constitutes nearly 93% of total assets.

Geographic Concentration Risk

100% concentrated in India; performance is directly tied to the Indian political and economic environment.

Third Party Dependencies

High dependency on the management quality and governance of investee companies to ensure sustainable dividend income.

Technology Obsolescence Risk

Identified as an operational risk; the company relies on technology for managing investment data and regulatory compliance.

Credit & Counterparty Risk

Exposure to the financial stability of banks where deposits are held and the creditworthiness of fixed-income issuers.