Tejas Networks Q1 Net Loss at ₹194 Crore, Revenue Declines to ₹202 Crore

Tejas Networks reported a net loss of ₹194 crore for the first quarter of FY26, compared to a profit after tax of ₹77 crore in Q1 FY25. The company's revenue from operations decreased to ₹202 crore in Q1 FY26 from ₹1,563 crore in Q1 FY25. The results were impacted by delayed receipt of purchase orders and shipment clearances.

Q1 FY26 Financial Results (in ₹ crore)
Metric	Q1 FY26	Q1 FY25	YoY Change	Q4 FY25
Revenue from Operations	202	1,563	-87.1%	1,907
EBIT	(232)	167		18
PBT	(297)	122		(45)
PAT	(194)	77		(72)

Financial Performance

The company's revenue from sales and service stood at ₹202 crore in Q1 FY26, significantly lower compared to ₹1,496 crore in Q1 FY25 and ₹1,907 crore in Q4 FY25. Other operating revenue remained consistent at ₹67 crore in Q1 FY25.

The EBIT for Q1 FY26 was ₹(232) crore, a sharp decline from ₹167 crore in Q1 FY25 and ₹18 crore in Q4 FY25. This decrease is attributed to lower revenue, which was partly offset by higher material margin (42% vs 19%) and lower variable costs.

The Profit Before Tax (PBT) for the quarter was ₹(297) crore, compared to ₹122 crore in Q1 FY25 and ₹(45) crore in Q4 FY25. The Profit After Tax (PAT) was ₹(194) crore, a significant drop from ₹77 crore in Q1 FY25 and ₹(72) crore in Q4 FY25.

Key Updates

Order book at the end of Q1 stood at ₹1,241 crore, with an additional ₹1,526 crore order expected for the deployment of approximately 18,700 sites at BSNL.

The revenue mix for Q1 FY26 was 81% from India and 19% from international markets.

The company experienced delays in receiving purchase orders and shipment of 18,000 sites for BSNL's 4G network.

There were also delays in inventory arrival and shipment clearances for a few customers.

Wireless Business Highlights

TCS received an Advance Purchase Order (APO) for an additional 18,685 sites for BSNL's 4G expansion. The expected value of the upcoming purchase order for Tejas is approximately ₹1,526 crore.

Tejas received an initial order for a private 5G deployment under BSNL's CNPN (Captive Non-Public Network) initiative.

A strategic partnership was formed with Rakuten Symphony to develop integrated 5G Open RAN solutions and drive global expansion.

Tejas partnered with Intel for integrating their SL-3000 D2M chipsets in Intel laptops. Lava and HMD India announced plans to launch D2M-enabled mobile phones using Tejas's SL-3000 chipsets.

Ongoing Proof of Concepts (POCs) and engagements are in progress with multiple domestic and international operators for 4G and 5G radios.

Wireline Business Highlights

Tejas won a Bharatnet Phase-III order from an SI partner for the supply of IP routers in two circles.

The company supplied GPON equipment for the BharatNet Last Mile Connectivity (LMC) project in Gujarat.

Run-rate orders for DWDM equipment were received from Tier-1 Indian telcos for their 4G/5G backhaul capacity augmentation.

Tenders were won in the critical infrastructure sector, including the supply of wireline equipment to railways, oil and gas, and defense sectors.

Network expansion business was secured from leading international customers in Africa and Europe.

The Hon'ble Union Minister of Communications, Shri Jyotiraditya Scindia, launched Tejas's 1.2Tbps per wavelength Coherent DWDM solution at the 2025 Bharat Telecom event in New Delhi.

Other Updates

Parag Naik, Executive Vice President, was conferred the Pandit Deendayal Upadhyaya Telecom Excellence Award by the Ministry of Communications, Government of India.

Tejas Networks was recognized as the "Supply Chain Leader of the Year – Technology and Electronics" at the 2025 SCM Middle East Conclave & Awards, Dubai.

The company received ₹122.96 crore as PLI (Production-Linked Incentive) incentives for Q3 FY25.

Financial Indicators

Inventory during Q1 FY26 was ₹2,537 crore, compared to ₹2,367 crore in Q4 FY25. This inventory is expected to be converted to finished goods and shipped in the upcoming months.