Synopsis: Shares of Tejas Networks Ltd, a Tata Group company, gained after the firm announced a significant project win from PowerGrid Teleservices, a subsidiary of Power Grid Corporation of India.
A Tata group stock was in focus after the company announced a new network capacity expansion project from PowerGrid’s telecom arm. Investor sentiment turned positive following the announcement, reflecting optimism over the company’s deepening role in India’s optical transport network upgrades.
Tejas Networks Ltd, with a market capitalization of Rs. 9,616.55, opened at Rs. 542.05 on the BSE against the previous close of Rs. 538.80. The stock touched an intraday high of Rs. 549.75, registering a gain of 2.03 percent from the previous close.
What’s the News?
Tejas Networks announced that it has secured a Telecom Capacity Augmentation Project for implementing a next-generation SDN-based DWDM network with PowerGrid Teleservices (PowerTel), a subsidiary of Power Grid Corporation of India (PGCIL).
The contract includes network design, supply, installation, testing, commissioning, and integration of a 400Gbps DWDM system for new greenfield sites and upgrading existing links. The company will deploy its advanced multi-terabit TJ1600 DWDM/OTN platform, capable of delivering up to 1.2Tbps per wavelength while supporting alien wavelength technology, enabling seamless integration with third-party optical systems.
Comments from the Management
Arnob Roy, Chief Operating Officer and Executive Director of Tejas Networks, said, “We are delighted to extend our long-standing partnership with PowerTel to augment the backbone capacity of their pan-India DWDM network to address the exploding demand for high bandwidth connectivity from data center providers, telcos, government and large enterprises. Our pioneering alien wavelength solution offers a cost-effective transition path for global telecom operators to significantly boost capacities on their brownfield networks while enhancing supply chain diversity and accelerating time-to-market for new services. With over a decade-long experience in researching and perfecting this technology, our company is one of the very few optical networking suppliers in the world to have commercially deployed alien wavelength technology at scale over diverse and complex third-party optical line systems.”
Financial Snapshot – Q2FY26 Summary
On a quarter-on-quarter basis, Tejas Networks reported mixed results for Q2FY26. Revenue increased by 29.7 percent to Rs. 262 crore from Rs. 202 crore in the previous quarter. However, operating loss widened from Rs. 136 crore in Q1FY26 to Rs. 294 crore in Q2FY26. The company’s loss before tax expanded from Rs. 297 crore to Rs. 473 crore, while net loss increased from Rs. 194 crore to Rs. 307 crore sequentially.
Year-on-year, performance weakened sharply. Revenue declined 90.7 percent from Rs. 2,811 crore in Q2FY25 to Rs. 262 crore in Q2FY26. The company slipped from an operating profit of Rs. 535 crore to an operating loss of Rs. 294 crore, while profit before tax turned from Rs. 411 crore to a loss of Rs. 473 crore. Net profit also reversed from Rs. 275 crore in the year-ago quarter to a net loss of Rs. 307 crore.
About the Company
Tejas Networks Ltd designs and manufactures high-performance wireline and wireless networking products catering to telecom service providers, internet service providers, utilities, defense, and government entities across more than 75 countries. A part of the Tata Group, Tejas Networks is majority-owned by Panatone Finvest Ltd., a subsidiary of Tata Sons Pvt. Ltd.
-Manan Gangwar
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