This Tata Group stock engaged in designing, developing, and manufacturing high-performance, carrier-class equipment for building telecommunication networks, jumped 4 percent after receiving an incentive worth Rs. 123.45 crore from the Ministry of Communications under the PLI Scheme.
Stock Price Movement:
With a market capitalization of Rs. 11,610.25 crores, the share of Tejas Networks Limited has reached an intraday high of Rs. 688.85 per equity share, rising nearly around 4.35 percent from its previous day’s close price of Rs. 660.15. Since then, the stock has retreated and is currently trading at Rs. 659.45 per equity share.
What Happened:
Tejas Networks Limited has received Rs. 123.45 crore from the Ministry of Communications, Department of Telecommunications, as an incentive under the PLI (Production Linked Incentive) Scheme for Telecom and Networking Products for the financial year 2023-24. This payment highlights the company’s contribution to the telecom sector and its successful participation in the government’s initiative to promote manufacturing in India.
Order Book:
By the end of Q3, the company reported a solid order book of Rs. 2,681 crore, driven by growth in wireless and wireline projects, ongoing 4G/5G rollouts, broadband expansion, and rising global market involvement.
Business Highlights:
The company achieved significant progress in both its wireless and wireline businesses. In Wireless, they completed supplying equipment for over 27,000 sites, reaching a total of more than 86,000 sites for BSNL’s 4G/5G network. They developed radios in five frequency bands and are working with both Indian and global operators on 5G solutions.
On the wireline side, they signed a 3-year contract with Vodafone Idea for 4G/5G equipment, secured broadband orders for BharatNet in Tamil Nadu, and received initial orders for network upgrades in the US.
Expansion Plans:
The company is expecting to secure major projects like BSNL’s 4G expansion, 5G upgrades, and BharatNet Phase 3 in the last quarter of FY25 and the first quarter of FY26. It is also focusing on investing in utilities and expanding its high-speed data networks (WDM backbones).
Additionally, the company is testing private 5G solutions and sees promising opportunities in the US market for upgrading networks and expanding broadband services.
Recent quarter results:
Tejas Networks Limited’s revenue has increased from Rs. 560 crore in Q3 FY24 to Rs. 2,642 crore in Q3 FY25, which has grown by 371.79 percent. The net profit of the company has turned negative into positive, from a net loss of Rs. 45 crore in Q3 FY24 to a net profit of Rs. 166 crore in Q3 FY25.
Written By – Nikhil Naik
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