Tejas Networks posts a robust seven-fold topline growth driven by 4G expansion

On QoQ basis, the net profit has grown by 250%, while revenue rose by 80% compared to the previous quarter.

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Tejas Networks - manufacturer of wireline and wireless networking products - has posted a very strong quarterly growth of seven-fold on year in its Q2FY25 net revenue at Rs 2,810 crore, with a net profit coming in at Rs 266 crore as against a net loss a year ago.

On QoQ basis, the net profit has grown by 250%, while revenue rose by 80% compared to the previous quarter.

EBIT margin for Q2FY25 came in at 16.3%, and the orderbook stands at Rs 4,845 crore at the end of the September quarter.

The ramp up for BSNL’s pan-India network has contributed to the massive growth in the quarterly revenue, the company said, adding that its wireless business has received additional orders for 4G sites in a few circles. For BSNL, Tejas Networks said it shipped equipment for over 58,000 sites during the September quarter. The BSNL's 4G-related orders to TCS dominated the India business for Tejas Networks which was 93% of the total revenue, the company said.

Ahead of the result, shares of Tejas Networks ended the day higher by 5% on strong volumes. On a YTD basis, Tejas Networks is up by 35%, and the company has a market capitalisation of over Rs 20,000 crore.

Tejas Networks said it is looking at major orders in the near future, including BSNL's 4G and 5G upgrade, Kavach system installation for Railways, and a private 5G application for a large enterprise in India.

The upcoming expansion of Bharatnet Phase 3 also promises to be a key opportunity for the company, Tejas said.

Going forward, Tejas Networks is betting on the continued investments in Fixed and Mobile networking technologies to boost its business. These opportunities include modernization of utility networks, investments in broadband connectivity as well as AI Data Center connectivity projects, apart from global 4G and 5G deployments.