The shares of the data networking products manufacturer fell up to 16 percent in today’s trading session after reporting a net loss of Rs 72 crore in the fourth quarter, citing weak demand.
Price Movement
With a market capitalization of Rs 13,580.35 crore, the shares of Tejas Networks Ltd were trading at Rs 769.30 per share, decreasing around 10.53 percent as compared to the previous closing of Rs 859.85 apiece.
Reason for crash
The shares of Tejas Networks Ltd have seen bearish movement after reporting negative results in Q4FY25, Revenue decreased by 27 percent on a quarter-on-quarter basis from Rs. 2,642 crore in Q3FY25 to Rs 1,907 crore in Q4FY25. Further, revenue zoomed by 44 percent year on year, from Rs 1,327 crore in Q4FY24 to Rs 1,907 crore in Q4FY25.
The company reported a net loss in Q4FY25, reversing its Q3FY25 profit of Rs 166 crore to a loss of Rs 72 crore. On a year-on-year basis, net profit also declined, shifting from Rs 147 crore in Q4FY24 to a loss of Rs 47 crore in Q4FY25.
The company posted a strong FY24- 25 performance, with revenue surging 261 percent from Rs 2,471 crore to Rs 8,923 crore. Net profit increased by 609 percent, rising from Rs 63 crore to Rs 447 crore, reflecting robust growth and improved profitability over the previous financial year. The Board also announced a dividend of Rs 2.50 per equity share
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Revenue Mix
In FY25, revenue was mainly driven by the India Private company at 94 percent, led by BSNL 4G-related shipments to TCS. The India Government contributed 3 percent of revenue, witnessing a 66 percent YoY decline, while International revenue also stood at 3 percent, with an 18 percent YoY growth from key shipments to the US, Africa, and South Asia.
Business Highlights
In Q4FY25, the company completed radio and baseband supplies for BSNL’s 100K 4G/5G sites, signed a technology collaboration with NEC Japan, secured key wins for Optical, PTN, and FTTx products, and expanded its sales footprint across the Americas, EMEA, and ANZ, marking strong business and geographic growth.
Future Outlook
For FY26, the company plans to leverage its expanded portfolio, including advanced 5G, Optical, IP/MPLS, and FTTx solutions. Global market growth is projected, driven by a strong domestic pipeline, new customer acquisitions, NEC partnership benefits, and expanded international sales, positioning the company for stronger global momentum and business expansion.
Company Profile
Tejas Networks Ltd develops and produces wireline and wireless networking products, with an emphasis on technology, innovation, and R&D. TNL carrier-class solutions are utilized by telecom service providers, utilities, governments, and defense networks in over 75 countries.
Written by Abhishek Singh
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