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.
| 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.
- Trade receivables stood at ₹4,453 crore, with approximately ₹650 crore collected during the quarter.
- Payables decreased to ₹580 crore.
- Net working capital increased in Q1 by ₹432 crore.
- The cash position at the end of Q1 was ₹545 crore.
- Borrowings at the end of Q1 were ₹3,990 crore, used for working capital purposes and capex investments.
