This true stereo indicator is different from what we usually find on FM radio receiver, which is usually a pilot tone detector. A stereo broadcast from FM radio station contain pilot tone, but a presence of pilot tone doesn’t necessarily a stereo broadcast signal since a mono FM transmitter ca broadcast pilot tone as well. Since this circuit detect the difference between left and right channel, this circuit can detect a real stereophonic programs. When there is no difference between R and L input signals, the output A1 and output A2 is at the same potential. That will make a a virtual ground rail at half the supply voltage. Here is the schematic diagram of the circuit:
The A1 will supply a negative or positive voltage when A1 detects a difference between R and L input signals with respect to the virtual ground rail. The C4 will be charged via D2 an C3 via D1. The LED is turned on by the comparator A3/A4 via OR circuit D3/D4. The input signal level should be greater than 100mV to compensate for the drop across D2 or D1. P1 is used to adjust the sensitivity of stereo indicator.