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)MetricQ1 FY26Q1 FY25YoY Change

Q4 FY25

Revenue from Operations2021,563-87.1%

1,907EBIT(232)

167

18PBT(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.