Tejas Networks Ltd (NSE: TEJASNET) Q4 2026 Earnings Call dated Apr. 15, 2026
Corporate Participants:
Arnob Roy — Executive Director & Chief Operating Officer
Sumit Dhingra — Chief Financial Officer
Sanjay Malik — Chief Strategy & Business Officer
Analysts:
Mohit Mishra — Analyst
Shailesh Jahagirdar — Analyst
Pranav Kshatriya — Analyst
Ritesh Poladia — Analyst
Unidentified Participant
Pratap Maliwal — Analyst
Darshil Jhaveri — Analyst
Rajakumar Vaidyanathan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Tejas Networks Limited Q4 FY26 Earnings Conference Call hosted by ICICI Securities Limited. [Operator Instructions]
I now hand the conference over to Mr. Mohit Mishra from ICICI Securities Limited. Thank you, and over to you, sir.
Mohit Mishra — Analyst
Yeah, thank you. Good evening, everyone. Thank you for joining on the Q4 FY26 results conference call of Tejas Networks Limited. We have the management with us of Tejas Networks on this call, represented by Mr. Arnob Roy, Executive Director and COO; Mr. Sumit Dhingra, CFO; Dr. Kumar N. Sivarajan, CTO; and Mr. Sanjay Malik, Chief Business and Strategy Officer.
I would like to invite Mr. Arnob Roy to initiate with opening remarks, post which we will have a Q&A session. Thank you, and over to you, sir.
Arnob Roy — Executive Director & Chief Operating Officer
Thank you, Mohit. Good evening and welcome everyone to our quarterly earnings call presentation. So at the outset let me sincerely apologize for the delay. We have a delay of an hour. We had lot of technical problems uploading the materials to the SEBI site and that largely caused the delays. So I once again profusely apologize for the delays for the start of the conference.
So let me begin by walking you through the Q4 financial numbers. So in Q4 we had a revenue of INR333 crores as opposed to INR307 crores in Q3. And for the year, we had revenues of INR1,103 crores. We had a net PAT loss of INR211 crores in Q4 as opposed to INR197 crores of PAT loss in Q3. And for the entire year, we had a PAT loss of INR909 crores. We had a growth in order book at the end of Q4. We ended with INR1,514 crores at the end of Q4 as opposed to INR1,019 crores at the end of Q4 of FY25.
So from our revenue mix, India once again dominated our business, 88% India. And from order book also it was very similar where it was dominated by the India business, as far as bookings are concerned.
So even though we made initial business, wireless business with international customers, our quarter revenue was driven largely by the sale of Wireline products to India private and international customers. And as I mentioned, we had a significant order book year-on-year growth.
So I would like to now hand you over to our CFO, Sumit, for taking you through the financial numbers in details.
Sumit Dhingra — Chief Financial Officer
Good evening everyone. The revenue for the quarter four was INR333 crores compared to INR307 crores in the previous quarter, quarter-on-quarter growth of 8%. EBIT for the quarter was negative INR219 crores as against INR239 crores in the previous quarter and profit after tax was INR211 crores compared to INR197 crores in the previous quarter. The full year revenue was INR1,103 crores and profit after tax of negative 3 — INR909 crores. Inventory at the end of the quarter stood at INR2,438 crores compared to INR2,363 crores in the previous quarter. Receivables at INR3,258 crores, and payables at INR478crores. The cash position at the end of the quarter was INR505 crores and net debt of INR3,531 crores. At gross level, the borrowings were INR4,035 crores at the end of the quarter.
And I’ll ask Arnob to take over the next few slides.
Arnob Roy — Executive Director & Chief Operating Officer
Thank you Sumit. I’d like to add some color to the business that has happened over Q4 and also have a review of our business during the year. So during the quarter some of the significant things that happened in our wireless business was signing an agreement with NEC to manufacture and supply our 5G massive MIMO radios for a global customer. The other significant thing was we received an initial order for the expansion of 4G networks from a customer in South Asia and we have multiple ongoing field trials for our 4G and 5G RAN product products across South Asia and the Americas. And we recently successfully completed a 5G POC in South America.
For our wireline business, in the quarter we completed the shipment of a significant number of IP/MPLS routers to BharatNet Phase III. As you know, we are the largest suppliers in terms of number of circles for BharatNet Phase III and significant amount of shipment and many of them, several sites are now carrying live traffic.
We supplied a major amount of 100 gig and 400 gig DWDM systems to our Tier 1 telco in India for their 5G backhaul network, for the enterprise services, and also for their services for hyperscaler data center connectivity. We were selected to build a nationwide network of a multi-terabit DWDM network for a hyperscaler data center application in India. And it was a proud moment for us for a very famous global sporting event, we implemented the backbone network of — multi-country network for this event using our state of the art WDM network. This was a global sporting event, which happened recently.
Other highlights during the year, our product got recognized at ET Telecom for our innovative satellite — Satcom IoT solution and we also won the prestigious Golden Peacock awards for our 5G RAN solutions. We launched our state-of-the-art ultra compact and hyperscale data center interconnect product at MWC, at Mobile World Conference in Barcelona. It was launched by the Honorable Minister of Communications. We filed 63 patents in Q4, bringing the cumulative count to 676 out of which 371 have been granted. We also received PLI incentives for FY25 of additional INR69 crores reaching a total of INR467 crores for FY25.
A few corporate updates. For the year, we had some changes at the board as well as our senior management. So we appointed Mr. Srikumar Vijayasekharan as Additional Director, Non-Executive and Independent Director of the company, with effect from April 15, subject to the approval of shareholders. And Mr. Srikumar is a Chartered Accountant with over 40 years of experience covering audit and assurance services including eight years as COO at Deloitte. Mr. P R Ramesh, who was an Independent Director of the company resigned, and effective closing business hours of April 18. And Mr. Srikumar has taken over his spot as the Independent Director of the company. I have been appointed as the Executive — I was — I’m currently the Executive Director and Chief Operating Officer, but I have been appointed as the Managing Director and CEO of the company from — effective today till 2028. And this is subject to the approval of the shareholders of the company.
Few more updates. Mr. Preetham Uthaia, who is currently the Vice President of Product Line Management of the company has been appointed as the Chief Operating Officer of the company with effect from today. Mr. AVS Prasad, who is currently the Financial Controller of Tejas, has been appointed as the Chief Financial Officer of the company, with effect from 16th of May. And Mr. Sumit Dhingra, our current CFO has resigned from the services of the company, but it will be effective from the close of business hours on May 15.
So a quick review of the — of FY26. So this year has been a year of consolidation for us. A lot of the technology and products that we developed over the last three, four years achieved commercial scale and deployment at a global scale. The BSNL 4G/5G network went live across 100,000 sites, it was launched by the Honorable Prime Minister in 2025. We deployed our largest indigenous router networks in the country through the BSNL 4G backhaul network, or the RAN network as well as in the — for the BharatNet Phase III networks. We did — we had very successful global rollout of our WDM products with 400 gig and 800 gig wavelength services, both in India as well as internationally. And we also continued the deployment of the world’s largest satellite IoT network with our vehicle tracking system solution.
We continued the innovation journey with our new products and technology launches. We launched our 64TR massive MIMO radio, 5G radio, during IMC, at Indian Mobile Congress and it was launched by the honorable MOC. We launched our WDM system, our C+L band capable WDM system which transmits over 76 terabit of our data over a single pair of fiber that was launched during IMC by honorable Minister of State. We launched our cloud native converged 4G/5G core, also during the year and it is undergoing trials at multiple locations across the world, multiple — across multiple customer networks. And at MWC during the year, last year we launched our hyperscalable data center interconnect platform, which over a very compact form factor launches over 50 terabits of data in a single footprint. And we also talked about the patents filed during the year. 147 patents are filed in FY26 and more than 150 contributions to the 3GPP standards, the evolving 3GPP standards.
Last year we had announced strategic partnerships with NEC and Rakuten. And in the last financial year, we kind of went — developed this partnerships further. So we — after — we signed our first contract for the supply of massive MIMO radios with NEC for an international deployment. And with Rakuten Symphony, we have partnered with the Open RAN solutions and we have multiple ongoing PoCs across the world and one of them was completed successfully very recently.
A significant achievement was expanding our wireless footprint both in India as well as internationally. We covered new geographies about — and the two deals we talked about are the 5G massive MIMO radio for the global customer and the Open RAN deployments. We also signed up several new applications. We did successful PoCs for 5G private networks and also the 5G RAN pilot for the Kavach network.
So looking forward from a future business outlook. One of the — we see that AI is going to be one of the driving — one of the killer applications which are going to drive the megatrends for network transformation both in terms of the traffic in the network as well as transformation of the network architecture. So with the rapid adoption of AI applications, by 2023, AI traffic is credited to be more than 60% of the total network that will be running on the traffic. We’ll have more than 100 million physical AI machines connected to the network by 2035. The profile of traffic is going to change dramatically from the today’s downstream heavy traffic to upstream traffic where upstream traffic will outpace the downstream traffic networks, the traffic that is of today and that will require significant network transformation. Most enterprise will adopt AI heavily with running GenAI workloads of the cloud and this is also going to drive from the traditional compute cloud based traffic that they access is going to get transformed to an AI based access from the cloud.
So with this trend, the AI — this is going to drive network infrastructure build super cycle, and then that and — which basically means that the current communication service provider network, the CSP network, will not be sufficient to handle the traffic growth in the coming years. And the other — the transformation that will happen is that close to 50% of the new AI traffic will be processed at the edge nodes, where edge inferencing is going to play a big role in the architecture of the global AI networks There will be significant investments in new networks with 400 gig, 800 gig connectivity even at the access and at the edge to cater to the significant traffic growth. And AI is also expected to accelerate the adoption of 6G and AI technology will be natively embedded in the RAN, and Edge and Core of the network.
From a business impact, we’ll see a lot of — the convergence of not only access and backhaul, but also it will converged with compute at the network edge to support the edge AI infrastructure and the edge inferencing workloads in the network. There will be significant scaling up of our optical solutions and packet switching and routing and converging with edge compute in the edge and access networks. And the data center connectivity will go to multi-terabit scale, which is already scaling up to that level, but is going to scale up significantly to provide for the AI cloud interconnect.
So we have built our current platforms, which will scale very efficiently for the networks of the future to handle the traffic capacities as well as the traffic characteristics of future networks. Our new generation 5G products are being designed to scale and evolve into 5G advanced and 6G products with higher uplink, supporting much higher uplink capacities. Our high capacity optical which supports 1.2 terabit per channel is going to scale to 1.6 terabit and beyond to support the terabit scale data center connectivity of the feature. Our edge, multi-terabit edge node is going to again scale in capacity and interface and also going to integrate with compute capacity and compute infrastructure to support AGI applications.
And our next generation access will evolve supporting further convergence of wireless and wireline access solution. And AI will drive — will be adopted in our network management, all across for driving automation, and for driving network management and fall prediction, and network configuration, and driving a huge amount of automation and optimization of the network.
So the key takeaways for FY26, that this has been a year of consolidation and transformation for us. We did — our technology that we have developed in the past, with commercial scale of deployment in very large networks. We expanded our portfolio significantly and launched several state-of-the-art products in wireless and wireline. We had several international wireless wins. They were the starting point of our international expansion for wireless business. And we made progress with the initial strategic partnerships that we had launched with several global partners.
So we are well positioned for long-term success. From an industry point of view, we see AI that will drive a lot of demand for network build down and as a result for our equipment as well. We have a product roadmap which is well positioned to leverage the future opportunities that we see and we have strong partnerships in place to expand our global customer footprint.
So before I end the presentation, I do want to make a few comments about the financial results in FY26. As we mentioned, this has been a year of transition for us after the execution of the massive BSNL projects in FY25, which gave us a significant amount of revenues and we needed a runway in FY26 to consolidate and transition our business beyond BSNL and several large customer projects that we were actually planning for both for wireline and wireless products have got delayed, which resulted in significant revenue shortfall and the resulting financial loss. However, we have not — we have not cut down on the investments during the year because of our outlook for the future and the industry trend that we see. Based on our FY27 business outlook, we believe that our — with our current investments and cost structure, we will be able to achieve better financial results. And net, net, while it has been a tough year for us business wise, much has been achieved to set us on a path for the future.
With that I come to an end to our introductory remarks and open the floor for Q&A.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] Our first question comes from the line of Shailesh Jahagirdar from Invest Yadnya. Please go ahead.
Shailesh Jahagirdar
Hi, am I audible?
Arnob Roy
Yes, you are, audible, Shailesh.
Shailesh Jahagirdar
So my question is that in February, we got a massive MIMO deal for — massive MIMO deal for 5G networks and also 4G network — a deal for 4G network in South Asia. So is there any data for quantify these orders or deal so that we can consider the future outlook of this deal, how it will affect the revenue in the — overall financials and the timeline of this project?
Arnob Roy
Yeah, so Shailesh, typically, we do not go into specific deal numbers and all. But a lot of the Massive MIMO — 5G Massive MIMO business will actually get revenued over the coming — this current financial year in FY27. Some of the revenue of the 4G deal happened in the past financial year, and we expect more expansion on that during the current financial year. But beyond that, we do not share any deal specific numbers or any project.
Shailesh Jahagirdar
Okay. And my second question was the BSNL, additional PO of 18,000 sites — so the same PO is delayed or — is there any update on that?
Sanjay Malik
Yeah, it is — this is Sanjay Malik here. So thanks for this question. So yes it is the same add-on PO, which has been there. So the active discussions are still going on with BSNL team on the sites on which they have to have these 4G sites and the configurations. So that discussion has been happening, and quite active discussion. We are still keeping our inventory here for delivering these sites in quick turnaround once we get the PO. But yeah, as of now the discussions are definitely on.
Shailesh Jahagirdar
Also, just to add on, so we have inventory. So the timeline for that order would be pretty much less than the previous BSNL orders like.
Arnob Roy
Sorry.
Shailesh Jahagirdar
So we have the inventory for the upcoming PO of BSNL. So the timeline — I just want to ask that the timeline would be much lesser than POL —
Sanjay Malik
Yeah, that’s right. That’s right. So because once — one thing is that, that now the sites are commercial. So it’s already tested out. So once we receive the order, we have the inventory. So definitely the delivery time would be much faster.
Shailesh Jahagirdar
Okay. Thank you. That’s all from my side.
Arnob Roy
Thank you.
Operator
Thank you. Your next question comes from the line of Pranav Kshatriya from Emkay. Please go ahead.
Pranav Kshatriya
Hi. Thank you for the opportunity. My first question is regarding the order book. I mean this INR1500-odd crore order book, you said almost 83% of that is coming from the India business. Does that include the BSNL 4G project as well?
Arnob Roy
No, it does not include the BSNL 4G project.
Pranav Kshatriya
So this is purely BharatNet and other private telco, whatever you might have?
Arnob Roy
Yes, yes, this is also — our customers both in India as well as international for our wireline and wireless business, but doesn’t include the BSNL 4G at all.
Pranav Kshatriya
And should we assume that most of this will be sort of executable in this year itself and hence potentially the revenue should be somewhat similar, if not higher than this number. I’m asking direction, not the exact number.
Arnob Roy
Yeah, a good portion of this will be revenued in this current financial year.
Pranav Kshatriya
Okay. And second question is regarding the cost of goods sold. So the memory prices have gone up, does that impact the margins for your product at all?
Arnob Roy
Yes, there is — the cost of memory does impact the cost of our products. Even though it’s a — even though it’s a small component of our product cost usually those are much smaller compared to the much more expensive class A equipment that we use for network processing, for optics and all those kind of things. But yes, the cost and also the lead time is also a challenge for us. And we are addressing this in multiple ways because there are newer products, newer technologies that are out there, and we’ll be addressing that. And also as a part of the increase, we are also renegotiating our cost, our prices with customers as well as for the new opportunities, which are out there to make sure that our — we protect our margins.
Pranav Kshatriya
Okay. Because I mean the purpose to ask this question was to understand how much should we expect the margin compression at a contribution margin level because it’s not only the memory, even the chip prices have sort of inched up because the demand for chips has also been higher. So can you give some qualitative or quantitative number that how much could be the impact on the margins?
Arnob Roy
Yeah, as I said, if you — as you asked the specific memory where the increase has been the largest, right. I mean others —
Pranav Kshatriya
Yeah.
Arnob Roy
I mean other increases selectively has not been as dramatic as memory. But thankfully memory is only a very small portion of our use. As you know, it’s like high volume component. So even large memories and the cost of those that are not very high compared to the several thousand dollars of [indecipherable] cost that we — the cost that we have of our product, right, upwards of many — many thousands of dollars. So it’s a very small component. But nevertheless, I think we are kind of making sure it is accounted in our cost and basically re-negotiating and re-offering our new prices with the escalation to make sure that we protect our margin. And the same holds for other cost escalations which are there, which are far more controlled and also very controlled by way because in the sense that because we also have long-term pricing contracts with our suppliers also, right. So those transitions happen very slowly and we have the window of negotiating prices on any new deals that we sign to account for the cost escalation.
Pranav Kshatriya
Sure. Last question from my side. Since you’re not giving any revenue guidance as such, I mean last year you did give revenue guidance. How should we look at the revenue growth for FY27 and margin given various — I mean any quantitative or qualitative color will be helpful.
Arnob Roy
Yeah. Pranav, we’ve never given revenue or any other financial number guidance in the past. And so I think we have to, we will stick to that. I mean we are not in a position to give any new guidance. However, as I said, we have a stronger business outlook. And that’s why I talked about that, with all the investments that we’ve made and with our positive business outlook, we have continued the investments during the year even though business didn’t materialize because we figured out that the investments in product evolution and building the new technologies was very important for our future business growth. So we continued on that. So obviously our outlook is positive, very positive for the future and we expect to see growth. But as a practice we’ve never quantified in terms of numbers.
Pranav Kshatriya
Thank you so much for all the answers. Wish you all the very best.
Sumit Dhingra
Thank you Pranav, yeah.
Operator
Thank you. Our next question comes from the line of Ritesh Poladia from Girik Capital. Please go ahead.
Ritesh Poladia
Thanks for the opportunity. Question is on balance sheet. There’s a good increase in intangibles under development from INR400 crores to INR960 crores. What does that pertain to?
Arnob Roy
Yeah, so I think intangible under development commonly consists of our product development effort and also related to the — the IP or the technology license, so that is only a transfer that we did with NEC, early part of — or towards the end of the previous year. And that is partly getting reflected in the intangible under development.
Ritesh Poladia
So that NEC investment was about INR550-odd crores. So everything has been done or still it is to be done?
Sumit Dhingra
A large part of it is done. I think it is linked to milestones and I think balance milestones we expect to get done within the next one or two quarters.
Arnob Roy
With the commercialization of all the investments that we made, which are as part of the intangible assets, all of them will get capitalized as when we have commercial feasibility and commercial adoption of all the new technology and products that we’ve developed, including this licensing.
Pranav Kshatriya
Sure. And from that IP only you got this first order from NEC customer?
Arnob Roy
Well, that was part of the — part of the agreement with NEC that we license some technology and we built radios for the future, okay.
Ritesh Poladia
So is this part of the same agreement where you got the first order? Because your order book is INR1500 crore and 80% is India. So that would be very small amount, right?
Arnob Roy
Yeah, yeah. As I said, we signed the contract for the supplies and so the revenue for that business will actually happen in FY27. So it is part of the same partnership even though the two contracts are separate. The technology licensing contract and this supply contract are different completely.
Ritesh Poladia
Okay. So, when do we see the revenue from this technology agreement?
Arnob Roy
Yeah, no, no, from this new contract with NEC. We’ll see the revenue for that in the — in this — in FY27.
Ritesh Poladia
Okay.
Arnob Roy
During the current financial year. Sure. Sir, as this bid comes bit complex, could you at least give us some sense that what kind of — or what amount of opportunities you are chasing right now and by what time of this will get 55 or what are the milestones which we can look for it?
Sanjay Malik
Again on this, definitely we have been chasing quite large opportunities both — again from wireless perspective, quite a few of those are international opportunities, which we have built over last one year. And if you would have seen that we have started quite a few trials also. So again difficult to give the overall size of the funnel number, but it is substantial and those will be getting again ordered in the coming year and then yeah, revenue booking also should happen from that in the coming year.
Ritesh Poladia
Sure. I understand your constraint in commenting further, but just to take it bit forward, will this opportunity will be multiples of what you got in BSNL?
Sanjay Malik
Multiples of what we got in BSNL, the original one, it would not be that 100,000 sites kind of thing, but because you know that numbers outside India are little bit smaller as compared to BSNL. But I think from our product perspective, reference building perspective and coming to the international wireless area, I think that would be very significant.
Ritesh Poladia
Sure. And regarding R&D spend for FY27, will it remain — is there any cut down or are you still going strong on your R&D investments, whatever you are looking for?
Arnob Roy
So we will continue our R&D investments, but obviously we will tailor it to the business outlook that we have. And obviously, the business maturing. So as I said, we will be optimizing it to make sure that we get much better financial results. But as of now, we plan to continue with our investments because the business outlook that we see in FY27 should be — we should be able to achieve better financial results even with our current investments and cost structure. But we will keep optimizing that as we see the business progress during the year.
Ritesh Poladia
Sure. And one final question on receivables, where do we see this number going in FY27?
Sumit Dhingra
I think on receivables, the two points. One is the number that you see needs to be looked at in context of the corresponding advance that we’ve received as part of the BSNL 4G order which is currently showing up in current liabilities. Having said that, we expect the collections of the — remaining collections on BSNL to significantly happen during this current financial year. So we expect the receivables to progressively come down over the next couple of quarters. Obviously, this will also increasingly be a function of also the incremental business scale up that happens over the next few quarters.
Ritesh Poladia
Yeah, that I understand. But the entire BSNL 4G will be collected in this year?
Arnob Roy
A significant portion of that should get collected this year. That’s again also linked to milestones and those progressively are getting complete. So we expect that to lead to collections over the next few quarters.
Ritesh Poladia
Yes. That’s it from my side. Very thank you very much.
Operator
Thank you. Your next question comes from the line of Pavnesh Kumar[Phonetic] from Britto Financial Services. Please go ahead.
Unidentified Participant
Hello, good evening. Am I audible?
Arnob Roy
Yes.
Unidentified Participant
So first of all I had a complaint like the timing for the con call was 7:15 and we started around 8:15 and the results were, I mean the presentation was out at 8:13 or 8:12. So, we didn’t get any time to read or analyze the presentation before the con call. And this has been repeated for past seven eight quarters. I requested four, five quarters earlier, also that time should be given to the investors to analyze and read the report at least, but still the same story.
Arnob Roy
Yeah, I think this time especially we had a lot of problems in uploading and that took a lot more time. So we had to [indecipherable] and again, once again, I apologize for the entire delay and the short window between the upload and the start of this call. We’ll make sure that it doesn’t happen in the future.
Unidentified Participant
Thank you. And secondly sir, congratulations on the patents that you’ve got in this quarter and the development that you’ve got on the product side. Well, the presentation that you gave was too technical for a layman like me. So it sounded like Greek and Latin for me, but whatever you said, I mean congratulations for that. But as an investor if we see the financials, I’m pretty disappointed with the way Tejas is going and I believe the shareholders money is being taken for granted. I do not see any progress in the financials. Even now you’re not able to give any kind of clarity on the future that we hold. Pretty bad situation that we are in right now. Very disappointed.
Arnob Roy
I agree, Pavnesh. I think of course as part of the company’s management, I mean it’s been disappointing for us also as well. There were a lot of business that as you said — as I mentioned that we had planned for based on which we had made investments that got delayed. And yeah, so we are — the thing that this — after this BSNL project this has been a year of transition for us and going forward with all — everything that we have done and invested in that we should be looking at a much more better and predictable financial results going forward.
Unidentified Participant
I just wanted to say like see our share price has come down from the lifetime high of INR1495 to — it came down in the range of INR300 also. I understand that market forces are there that drive the share prices apart from the financials, but you should take care about the shareholders money also and some guidance should be given about the future. This is just my recommendation, rest I leave up to your wisdom.
Arnob Roy
Sure. We’ll take this into account.
Unidentified Participant
Thank you. Thank you so much.
Operator
Thank you. The next question comes from the line of Pratap Maliwal from Mount Intra Finance Private Limited. Please go ahead.
Pratap Maliwal
Hello. Hi. Am I audible?
Arnob Roy
Yes, you are audible. Pratap.
Pratap Maliwal
Yeah. Hi sir, thanks for taking my question. I just wanted to have a clarification regarding that earlier participants question regarding the NEC deal for the supply of the massive MIMO radios. So is that part of our current order book of INR1,500 crores, or is that yet to come in? As you said that it will be revenued out in FY27. So is that already part of order book?
Sanjay Malik
Okay, so for this deal, actually — so that basically means that we are entering this account with NEC. So that is the first PO which has been received, which is part of the INR1500 crore. And as we go along there would be — the purchase orders would come as the rollout progresses through the year.
Pratap Maliwal
Okay. And this would be — can you give us any idea of how — we kind of understand that this will scale up, because as you’re saying that with outlook for FY27 is that we get some better results, because FY26 has been a year of transition. So can you give us some idea on how this is expected to scale up?
Arnob Roy
You mean this particular deal or the overall business in general?
Pratap Maliwal
Both sir, but in particular the NEC deal. Because as you’re saying that we get some follow on purchase orders as well. So what can we expect the scalability to be?
Arnob Roy
As I mentioned we —
Sanjay Malik
Yeah, so it all basically depends upon the rollout which the customer does. So as the rollout happens, then yeah, the new purchase orders keep coming. So difficult to again give a number projection on it. But I would say I think the follow on orders would be again better than whatever we have as of now.
Pratap Maliwal
Okay. Now, just one thing, when I look at our FY26, we’ve had a PAT loss of approximately INR900 crores. Now, FY27, as you’re saying that it’ll be a year of transition and we get better results. What is our path back to profitability? Can you give us some understanding on that front?
Arnob Roy
Yeah, I think we expect much better business in FY27 based on the opportunities that we see. And with that, and with — we will also manage our costs at the current level and optimize as required to make sure that we get to — we have a path to profitability. Because this has — as I said, this has been a one-off year where business got delayed but we didn’t want to compromise on our investments for the future opportunities. But going forward, I think we will ensure that one part of it is the business, which is out there, and our cost structure, which is there, they are in line. And we do expect that from the business outlook that we see in FY27, we should end up with much better financial results. And we’ll also — as the business progresses we will monitor and optimize our costs accordingly.
Pratap Maliwal
Are we expecting to be PAT positive in FY27?
Sanjay Malik
Yeah, we don’t give financial guidance but yes, that’s the goal.
Pratap Maliwal
Okay sir. Thanks for taking the question.
Operator
Thank you. The next question comes from the line of Darshil Jhaveri from Crown Capital. Please go ahead.
Darshil Jhaveri
Hello. Good evening, sir. Thank you so much for taking my question. Sir, as I understand you’re not going to give any guidance, but with regards to just our inventories and receivables, so that’s putting a serious strain on our balance sheet. What is the company’s aim regarding that? I understand even if I net off the other current liabilities for receivables, that still is like nearly double the revenue that what we’ve done in FY26. So just wanted to understand, like, what do we expect out of this? And what is — as company modeled out if, you know, BSNL order is even delayed by another year because that’s not in our hands, right, sir. So the PO we — so what is the inventory level? Will there be deterioration? Will there be some other write off that we need to take? So, what do you feel is the realistic outlook that we can have with regards to our inventories and receivables, sir?
Arnob Roy
So I think on receivables I broadly clarified in response to the earlier question. We are expecting to get the balance collections from the BSNL significantly during this year and that should lead to improvement from a receivable standpoint. On inventory also, I think as you alluded to, I think a large part of this is also coming from the advanced procurement action that we took for the BSNL add-on order. Right now, we continue to be in discussions with them with respect to getting the order. And obviously, the inventory here is something that gets used in the radios that we sell, and those can potentially also be sold to other customers. But I think — so that’s where it is, I think, for the — for now, I don’t think we have any further clarity with respect to the BSNL add-on order.
Sanjay Malik
See the inventory for these products, the BSNL 4G products are not unique to BSNL. I mean they are like wide range of radios for 4G and 4G available to 5G which are applicable for customers, for any kind of customers, right. So many of the opportunities that we are positioning ourselves internationally in the private 4G networks and all those kind of things all use the same products. So the inventory will also be used for many of those opportunities when they convert. So it’s not very unique to BSNL. However, I mean as you have noted that most of it had been procured for BSNL. So a significant part of it will go along with BSNL add-on order, but independently they will be consumed along with other business opportunities that we have globally.
Darshil Jhaveri
Okay, fair enough, sir. And just another question regarding like a cash generation ability, sir. So even in the current year I think we’ve been able to only generate around INR135 crore of cash. So that takes in account all the change in inventory advances that we’ve gotten. And on — based on that, I think we have invested, I think around INR700 crores in intangible assets, right, sir. So, majorly, if I — if I’m not wrong, our investment in intangible is debt funded. What is the rationale behind that? Because I don’t know if this is sustainable at a certain level, right, sir. If we are not going to be PAT positive in FY27, we are — we might be funding our intangibles with debt. But it will take such time to get traction, we get orders, we’ll get minute orders. But in that time, I don’t want that our company’s balance sheet deteriorates so much that we have bigger issues than research and development. So, any comments on that, sir?
Arnob Roy
No, I agree with your observation. The point is that since we are in the deep tech space, being in a situation where you don’t invest in technology evolution is a higher, bigger risk for the future of your business than the other way around, right. So from that point of view, we took in — FY26 we took the call of that, even with the business shortfall that we see, with the transition that is happening, and with the technology that we needed to develop to leverage the future, that will continue with our investment. And we have done that. And as you see, we have launched many products, which will help us for the business of the future. But I think going forward in FY27, as I said, the financial diligence of investments versus returns and revenues and all will be far more tighter because I believe the significant investment has gone in and we have achieved much of the goals that we had in mind.
So in FY27 and beyond, it will be a more — much more well-balanced investment that will happen in line with the business outlook, which will and also — which will continue to evolve and monitor very closely.
Darshil Jhaveri
Fair enough. Sir, just one last question from my end. Right now, we are at around INR1,500 crores of order book. If you may sir, any kind of target of the order win that we want. I’m not saying specifically for this year, maybe with the new technologies over a period of three years, what is the target that we can have in terms of order wins? Because even if some kind of direction, we can get like in this, that would be really helpful sir.
Arnob Roy
Well, as I said, the investments have been made with an eye of — on significant growth because — and this significant growth will be of course over year-over-year numbers. If you leave out the one of BSNL project, those kind of projects will come and there will be spikes in our business when they happen. But if you look at the business trend without those one off project kind of thing, whatever you see, we will definitely hopefully see business growth on top of what we have seen earlier in FY24 and so on. So that’s all I can say.
I think the overall growth in our opportunities, there will be significant growth in our opportunities. There will be a lot more investments happening from operators, from enterprises, from ISPs, and so on. And we are well positioned over there. So we — obviously this investment has been made with a business, which is several multiples of what we have done in FY26, right. So that’s basically the outlook based on which we have made all the investments.
Darshil Jhaveri
Okay, fair enough, sir. That’s it from my side, sir. All the best.
Arnob Roy
Thank you.
Operator
Thank you. The next question comes from the line of Shailesh Jahagirdar from Invest Yadnya. Please go ahead.
Shailesh Jahagirdar
Hi sir. So I was — I had a question about data center connectivity business. So TCS is actively building data centers, actively participating in data center building. They have a plan of one year. So do we have certain benefit of being a Tata Group company and we can get an CEO from TCS in somewhere? Do we have a benefit not in terms of amount, but in terms of being a group company? That’s what my question was.
Arnob Roy
Well, I mean independent of being a group company, we are engaged with not only TCS, but other of these data center builders for our products. And we have seen what a lot of our success in optical has been as part of those data center buildouts. So TCS is yes, one of our important customers as well for that, for data center applications. And yes, we are closely engaged with them with their future business, with the future business plans. But I’d like to highlight that they are not the only one for data center business related growth.
Shailesh Jahagirdar
Okay, thank you. That was my question.
Arnob Roy
Thank you. Your next question comes from the line of Arpit Jain[Phonetic] from Wallfort Financial Services Limited. Please go ahead.
Unidentified Participant
Hello sir, can you hear me?
Arnob Roy
Yes, we can hear you also.
Unidentified Participant
Yeah, Hi. Hi. Hi. So over the last year we filed a couple of patents. I just wanted an idea regarding when do these patents generate revenue for us? And what is the rationale behind filing so many patents? So what’s the future outlook regarding this patent?
Arnob Roy
Yeah, see, as a deep tech company, we need to file patents to, one is to protect our inventions so that our innovations are not replicated easily. The second part of this is that especially in the wireless space, there is a lot of the patents that go into what are called the standard essential patents. These are patents which are used for building the — as per the new standards of 5G or 5G advanced or 6G based on 3GPP standard evolution. So as a wireless company and also from our other business, we need this patent portfolio to be both from a point of protection or innovation, as well as a defensive portfolio where you would be cross-licensing patents from other companies, which are absolutely essential in nature as far as developing your wireless products and technology are concerned.
So in summary, both in terms of protecting our innovations and also for giving us a solid base for being able to cross-license patents and technologies with other technology developers. And this is more than a direct monetization of the number of patents that we have. It is monetization in a little indirect way.
Unidentified Participant
Okay. Thank you.
Arnob Roy
Yeah. We have time for one last question.
Operator
Sure. Thank you. Our next question comes from the line of Rajakumar Vaidyanathan from RK Invest. Please go ahead.
Rajakumar Vaidyanathan
Yeah, good evening. Can you hear me?
Arnob Roy
Yes, can hear you.
Rajakumar Vaidyanathan
Yeah, thanks for the opportunity. So, just a couple of questions. So the first question is it reasonable to expect a break even in FY27 and PAT positive in FY28?
Arnob Roy
That’s the goal. I mean we not give guidance, but that’s really the goal. As I said, FY26 has been a year of investment and FY27, we expect to see far better financial results in terms of — with the business outlook that we have and with the investments and the expense control that we will have in our — within the company. The expectation is that, yes, financial turnaround as quickly as possible. Starting — starting with FY27.
Rajakumar Vaidyanathan
Okay. And the second question is on this elongated DSO that you have with the BSNL order. So do you expect that elongated DSO even for the order that that is under execution, because you still not collected about INR3000 crores. So will the same issue will happen with the current order as well?
Arnob Roy
No, you’re talking about the collections from the upcoming order kind of thing or for add-on order, are you — is that what you’re talking about?
Rajakumar Vaidyanathan
Yeah, there are two issues. The one, whatever the year that is outstanding that you have shown in as of March ’26, that you said that you will be able to collect significantly in FY27. So my question is the order that you are executing, which is about INR1500 crores, the orders on hand that you mentioned, right? So there also the DSO will be elongated DSO or there you expect the collections to happen much faster.
Sanjay Malik
Yeah, so two things. So number one, out of this INR1500 crores of order book, BSNL purchase order is still not part of that because, as we said that we are still in discussion to get that into the purchase order. Second, the collection for this should be faster than the original order because first time we kind of delivered the product, tested it, then there is acceptance testing and then there is kind of rigorous testing against integration with their existing elements and all that. So those things will not be there when we go for this add-on PO. Because these add-on POs would be same technology, similar products to be integrated or to be installed. So the delivery time, and installation time, and acceptance time would be much faster.
Rajakumar Vaidyanathan
Okay, got it, sir. And sir, the last question is, can you give me what is the total headcount as of March ’26 vis-a-vis March ’25?
Arnob Roy
So total our headcount is roughly about 2300 employees, and that is broadly remain the same compared to the previous year.
Rajakumar Vaidyanathan
Okay, thank you so much.
Operator
Thank you. Ladies and gentlemen, with this, I now hand the conference over to the management for closing comments.
Arnob Roy
So thank you, Mohit. So thanks, everyone, for attending the call and for all your questions. Again — once again, first of all, as again my apologies for starting this an hour later than the scheduled time. And secondly, as you’ve seen the results of FY26, the key takeaway I want to gentlemen to have is that, yes, the results have been quite disappointing, but at the same time, we have to — we are positive about our future based on which we have made substantial investments during the year to make sure we are — our products are ready and technologically ready and capable for the business and the technology transition that we see. So we look forward to a much better future. And with that mindset, the investments have been made and hope to work with you all and connect to you all in future again and deliver a much better FY27. Thank you.
Operator
[Operator Closing Remarks]