Incorporated in 2000,Tejas Networks Ltd designs and manufactures wireline and wireless networking products, with a focus on technology, innovation and R&D. TNL carrier-class products are used by telecom service providers, utilities, governments, and defence networks in 75+ countries. Company is currently a part of Panatone Finvest Limited (a subsidiary of Tata Sons Private Limited).
Q3 FY26 Earnings Results
- Revenue from Operations (Consolidated): ₹307 crore, up 17% QoQ from ₹262 crore in Q2 FY26, but down ~88% YoY from ~₹2,642 crore in Q3 FY25 due to the high BSNL 4G base last year.
- Profit Before Tax (PBT): ₹–303 crore versus ₹–473 crore in Q2 FY26 and ₹211 crore profit in Q3 FY25, reflecting continued losses but sequential improvement.
- Profit After Tax (PAT): ₹–197 crore, improving from a loss of ₹–307 crore in Q2 FY26, but sharply lower versus profit of about ₹166 crore in Q3 FY25.
- EBITDA / operating trend: Losses remain significant, driven by low scale on a large fixed‑cost base and earlier manufacturing and warranty‑related provisions, though the QoQ reduction in loss indicates better cost absorption on higher revenue.
- Order book: ₹1,329 crore at the end of Q3 FY26, up from ₹1,204 crore at the end of Q2 FY26, with a strong domestic tilt and increasing private‑operator and international contribution.
- Net debt: ₹3,349 crore versus ₹3,738 crore in Q2 FY26; gross debt ₹3,885 crore and cash ₹537 crore, showing modest balance‑sheet improvement as working capital eased despite continuing capex.
Management Commentary & Strategic Decisions
- CEO and COO commentary highlighted that Q3 revenue growth was driven mainly by wireline products supplied to Indian private operators and international customers, partly offsetting the sharp decline in government BSNL 4G volumes versus last year’s peak.
- Management emphasised that losses narrowed QoQ due to higher volumes, better mix and some benefits from earlier cost actions, but acknowledged that profitability remains under pressure until utilisation improves materially.
- Strategic focus areas reiterated in Q3:
- Scaling wireline business with 400G DWDM and data‑center networking solutions in India and key global markets.
- Driving commercialisation of wireless products (including partnerships with NEC and Rakuten) with trials underway and commercial closures expected in coming quarters.
- Tight management of working capital and inventory, alongside calibrated capex, to gradually reduce net debt while supporting delivery against the order book.
- The company also reported additional wins in BharatNet and other government / rural broadband projects, aiming to diversify beyond the BSNL 4G cycle and reduce dependence on a single large programme over time.
Q2 FY26 Earnings Results
- Revenue from Operations (Consolidated): ₹262 crore, up 30% QoQ from ₹202 crore in Q1 FY26, but down ~90% YoY from about ₹2,811 crore in Q2 FY25 as BSNL 4G deployment tapered sharply from the prior‑year peak.
- Total Income: ₹267.8 crore versus ₹211.5 crore in Q1 FY26 and ₹2,821.9 crore in Q2 FY25.
- EBIT: ₹–394 crore, weaker than ₹–232 crore in Q1 FY26, reflecting large provisions for manufacturing‑process losses, warranty and inventory obsolescence.
- Profit Before Tax (PBT): ₹–473 crore versus ₹–297 crore in Q1 FY26 and ₹410 crore profit in Q2 FY25.
- Profit After Tax (PAT): ₹–307 crore, compared to a loss of ₹–194 crore in Q1 FY26 and a profit of about ₹275 crore in Q2 FY25; YoY decline in PAT of over 200%.
- Order book: Around ₹1,204 crore at the end of Q2 FY26, up from Q1 as new wins in 400G DWDM and other optical products came in across India, Europe and Africa.
Management Commentary & Strategic Directions in Q2 FY26
- Management squarely attributed the sharp YoY drop in revenue and swing to losses to:
- Normalisation after an exceptionally high BSNL 4G rollout base in FY25.
- One‑time and large provisions (~₹190 crore) for manufacturing losses, warranty and inventory obsolescence as the company right‑sized its cost structure and cleaned up the balance sheet.
- The CFO noted that despite the losses, order‑book growth and QoQ revenue improvement provide visibility for gradual recovery as execution broadens across government, private and international customers.
- Strategically, Q2 commentary stressed:
- Pivoting from a BSNL‑heavy phase to a more diversified portfolio across wireline (400G DWDM, broadband) and emerging wireless contracts, domestically and overseas.
- Strengthening manufacturing processes and quality systems to avoid repeat provisions and to protect margins as volumes recover.
- Continued collaboration with partners like NEC and Rakuten to accelerate 4G/5G wireless portfolio scale‑up and tap international opportunities.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.