Tejas Networks shares in focus on posting Q3 net loss of ₹196 crore, revenue plunges 88% YoY

In a regulatory filing late on Friday, the domestic gear maker reported a consolidated net loss of ₹196.55 crore for the second consecutive quarter during the period under review, mainly due to lower sales, including the deferment of a purchase order from state-owned BSNL.

The company had clocked a net profit of ₹165.67 crore in the third quarter of the 2024-25 fiscal year (Q3FY25).

Its revenue from operations plunged 88.89% to ₹306.79 crore for Q3 of the current fiscal year, as against ₹2,642.24 crore in the December FY25 quarter. However, it grew 17% on a sequential basis from ₹261.82 crore in the second quarter of FY26.

At an operational level, the firm posted an EBIT (earnings before interest and tax) loss of ₹239 crore, compared to an operating profit of ₹260 crore in the year-ago period.

Key updates

• The company has been a key vendor for state-owned BSNL's 4G network as part of the CDOT-TCS consortium and claims to be the biggest supplier of network routers.

• During the quarter, its purchase order worth ₹1,526 crore from BSNL for 18,000 sites was delayed.

• Around 85% of Tejas Networks' revenue mix, excluding operating revenue, was from the domestic market and 15% from the international market during the reported quarter.

• The company said it has maintained an inventory of ₹2,363 crore in the December 2025 quarter, which will be converted to finished goods and shipped in the upcoming months.

• Tejas Networks has recorded a loss of ₹697.55 crore in the nine months ended December 31, and a 89% decline in revenue from operations at ₹793.69 crore.

• It has reported cash of ₹537 crore in the December 2025 quarter.

• The company claims to have multiple wins for private 5G deployments in India for applications in ports and mines, and it has been selected as the 5G radio network supplier on a section of the Delhi-Mumbai railway corridor for an Indian Railways' Kavach pilot.

• The company also received ₹84.95 crore as PLI incentives for the March 2025 quarter during the reported quarter, thereby taking the total incentive received by the company under the scheme to ₹397 crore.

Outlook

The firm noted that its long-term outlook remained positive, bolstered by strong drivers and rapid technology transitions. This includes AI applications driving traffic growth, expansion of 4G and new developments of 5G in emerging markets, and investments in AI data centres driving huge connectivity requirements.

Furthermore, the company stated that there has been an increase in traction for its new products in India and international markets.