Synopsis:
Tejas Networks posted a weak Q1 FY26 with an 87 percent YoY revenue drop and a widened net loss of Rs. 193.87 crore due to delayed orders and shipments. Despite short-term challenges, the company remains optimistic with strategic partnerships and an order book of Rs. 1,241 crore.
One of India’s prominent telecom equipment manufacturers delivered a disappointing set of numbers for Q1 FY26, as revenue delays and shipment bottlenecks weighed heavily on the financials. Investor sentiment remained muted following the results, reflecting concerns over the company’s short-term visibility despite its promising long-term order book.
The company in focus is Tejas Networks Limited, with a market capitalization of Rs. 11,768.22 crore. The stock opened today at Rs. 645, significantly lower than its previous close of Rs. 698.40, and touched a 52 Week low of Rs. 627.45, reflecting a decline of approximately 10.16 percent from the previous closing price.
What’s the News?
Tejas Networks announced its unaudited consolidated financial results for the quarter ended June 30, 2025, showing a steep YoY and QoQ decline across key metrics.
Revenue from operations plummeted by 87.07 percent, dropping from Rs. 1,562.77 crore in Q1 FY25 to Rs. 201.98 crore in Q1 FY26. Profit after tax (PAT) fell by about 350 percent, falling from a profit of Rs. 77.48 crore to a loss of Rs. (193.87) crore. Profit before tax (PBT) also dropped from Rs. 121.55 crore to a loss of Rs. (297.35) crore, a major 345 percent drop, reflecting the severe revenue shortfall and operational challenges.
In terms of Quarter-on-Quarter performance, the company recorded a revenue decline of 89.4 percent, sliding from Rs. 1,906.94 crore in March 2025 to Rs. 201.98 crore in June 2025. The net loss widened by 170 percent from Rs. (71.80) crore to Rs. (193.87) crore over the same period. PBT also dropped from a loss of Rs. (45.09) crore to Rs. (297.35) crore, showing deepening operational losses in the absence of order executions.
Tejas Networks’ EPS stood at Rs. (10.99) as of June 30, 2025, reflecting the net loss position. The company maintains a ROCE of 15.5 percent and ROE of 12.8 percent. The Debt-to-Equity ratio stands at 0.89, indicating moderate leverage. The company’s Return on Assets is at 4.79 percent, with a dividend yield of 0.36 percent.
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Comments from the Management
Addressing the quarterly performance, Mr. Arnob Roy, COO of Tejas Networks, stated: “In Q1 FY26, we signed strategic partnerships with Rakuten Symphony for developing O-RAN solutions, and with Intel and some mobile phone manufacturers for adopting our D2M chipsets. These partnerships enhance our Go-to-Market initiatives in international markets. We won orders for our Routers for Bharatnet-phase 3 and Optical equipment from private operators in India. Our shortfall in revenue was due to delays in the receipt of a few purchase orders, including the expansion order from BSNL.”
Mr. Sumit Dhingra, CFO, added:
“In Q1 FY26 we had a revenue of Rs. 202 crore and a net loss of Rs. 194 crore, largely due to lower revenue. We ended the quarter with an order book of Rs. 1,241 crore, representing a QoQ growth of 22 percent. With the award of the expansion order of 18,685 sites of BSNL 4G to TCS, we expect to receive the corresponding PO for supply of RAN equipment worth Rs. 1,526 crore.”
Despite a challenging quarter, Tejas Networks remains optimistic about the future, supported by strategic alliances and a robust order book. The Q1 FY26 revenue mix was heavily skewed towards India, contributing 81 percent, while international markets contributed 19 percent.
The closing order book mix stands at 92 percent India and 8 percent international. The company’s order book stood at Rs. 1,241 crore at the end of Q1, with an additional Rs. 1,526 crore order expected for the deployment of approximately 18,700 BSNL sites, up from Rs. 1,019 crore in Q4 FY25.
About the Company
Incorporated in 2000, Tejas Networks Ltd designs and manufactures wireline and wireless networking products, emphasizing innovation and in-house R&D. The company serves telecom service providers, utilities, governments, and defense sectors across 75+ countries. It operates as part of Panatone Finvest Limited, a subsidiary of Tata Sons Private Limited, bolstering its strategic credentials in the telecom infrastructure domain.
Written by – Manan Gangwar
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