Key Takeaways:
- Severe Financial Slump: Revenue plummeted 83% this quarter, leading to a widened net loss of ₹211.34 crore and negative margins.
- Global Pivot: Despite losses, the company secured its first international 4G/5G commercial order and won a major 5G radio contract with NEC.
- Order Book Growth: The order book grew 49% to ₹1,514 crore, though high debt and delayed government project payments remain key risks.
Tejas Networks shares fell more than 3% on Thursday after the company reported a wider fourth-quarter net loss of ₹211.34 crore and an 83% decline in revenue, reflecting weak business volumes and pressure on margins.
The stock dropped 3.07% to ₹436.10 on the National Stock Exchange in early trade after the company released its earnings for the quarter ended March 31. The shares had fallen as much as 6% earlier in the day as investors reacted to the weak results.
Revenue Declines Sharply in Fourth Quarter
Tejas Networks posted a consolidated net loss of ₹211.34 crore in the March quarter, compared with a loss of ₹71.80 crore in the same period a year earlier. Revenue from operations fell 82.55% to ₹332.69 crore from ₹1,906.94 crore a year ago.
The company also reported an EBITDA loss of ₹118 crore in the quarter. Its EBITDA margin stood at negative 35.53%, compared with a positive margin of 6.37% in the year-ago period.
For the full financial year 2025-26, the company reported revenue of ₹1,103 crore and a net loss of ₹909 crore. In the previous financial year, the company had posted revenue of ₹8,923 crore and a profit of ₹447 crore.
Company Highlights: International Expansion
Arnob Roy, chief operating officer of Tejas Networks, said the company made progress in expanding its wireless business overseas during the quarter.
“In Q4 FY26, we made significant progress in international business expansion of our wireless products, with the first commercial order for our 4G/5G wireless products in international markets,” Roy said. He also cited a 5G massive MIMO radio supply contract with NEC and successful trials of 5G products in the Americas.
Roy said the company also saw demand for its 400G and 800G coherent DWDM solutions as telecom operators and enterprises increased spending on bandwidth and data connectivity.
Order Book Grows Despite Financial Pressure
Sumit Dhingra, chief financial officer of Tejas Networks, said the company ended the quarter with an order book of ₹1,514 crore, up 49% from a year earlier.
He said the company’s net debt stood at ₹3,531 crore at the end of March, while gross debt was ₹4,035 crore and cash reserves were ₹505 crore.
Market participants have linked Tejas Networks’ shares’ recent slowdown to delayed orders and high receivables tied to government projects, particularly from BSNL. Analysts and retail investors have pointed to delayed follow-on orders and rising inventory levels as key risks for the business.
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